MTVN Affiliate Deals Roll On
Distributors DirecTV and Mediacom Renew, But EchoStar Sues Viacom
By Mike Reynolds & Linda Moss -- Multichannel News, 1/11/2004 7:00:00 PM
MTV Networks put the final touches on comprehensive deals with a pair of distributors last week: DirecTV Inc. and Mediacom Communications Corp.
But the programmer's parent, Viacom Inc., remained at press time in extended renewal talks with EchoStar Communications Corp. for a number of networks, after the DBS provider filed suit last week over carriage rights for CBS-owned stations in major markets.
In the pact with DirecTV, the direct-broadcast satellite provider will continue to carry Viacom's MTVN channels — such as MTV: Music Television, Nickelodeon, VH1, TV Land, Spike TV, CMT, Noggin, VH1 Classic, MTV2 and Comedy Central — as well as Black Entertainment Television.
Under the accord, DirecTV will continue to carry Viacom-owned CBS's analog broadcast, as well as its HDTV coverage of Super Bowl XXXVIII and its HDTV lineup in markets with CBS owned-and-operated TV stations. DirecTV will also continue to distribute the analog broadcasts of Viacom's UPN TV stations.
DirecTV also will now offer Nicktoons to subscribers to its Total Choice Plus package.
MTVN and Mediacom's long-term carriage deal provides carriage of all of the programmer's analog channels, including Comedy Central, throughout the MSO.
The deal also calls for Mediacom, the No. 8 U.S. MSO, with about 1.55 million subscribers in 23 states, to distribute MTVN's core digital package — including Noggin, VH1 Classic, MTV2, Nickelodeon Games and Sports, Nicktoons and MTV Hits — across its systems.
"We are extremely pleased to finalize a long-term programming contract with MTV Networks, as our customers will soon benefit from the planned launches of more and diverse digital video offerings," Mediacom chairman and CEO Rocco Commisso said in a prepared statement.
Said MTVN chairman Tom Freston, "We are especially pleased that we can continue to provide Mediacom customers with not only the great programming from our strong brands that they are used to, but more new programming from our digital package."
Bundling and pricing issues are at the heart of the EchoStar-Viacom dispute.
Carriage deals for MTVN-owned Nickelodeon, MTV, VH1 and Comedy Central on EchoStar's Dish Network platform expired at year-end.
Before the new year, though, the parties agreed to a carriage-deal extension through Jan. 7.
On that date, EchoStar filed a lawsuit in federal court in San Francisco, contending Viacom is illegally trying to force it to distribute cable networks on Dish in exchange for the right to carry 18 CBS-owned stations in 15 large markets.
EchoStar spokesman Steve Caulk said Viacom was "threatening to pull CBS and the Super Bowl unless we agree to carry many of their channels at what we consider to be non-competitive rates."
The suit claims Viacom is demanding that EchoStar extend its agreements for TV Land, CMT and Spike and that it carry Nicktoons for the first time.
In a statement, Viacom called the lawsuit "without merit" and "merely a strong-arm tactic in what has been a long and difficult negotiation." Viacom then cited recent deals with DirecTV, Mediacom, Comcast Corp. and Cox Communications, distributors that "acknowledge the value of our networks for their subscribers, and we're hopeful that EchoStar will ultimately recognize that value."
With contract negotiations extended through Jan. 14, Caulk said the lawsuit is now in abeyance. "Are we on the phone right now? No. But we feel we are having fruitful discussions."
A Viacom spokeswoman used the same adjective to characterize the current talks: "We're back at the table. Apparently, the negotiations are fruitful."
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