Comcast Corp. is embroiled in a lawsuit with yet another programmer owned
by Liberty Media Corp.
The programmer: TV-music provider DMX Inc., which is paid more than $18
million per year through an apparent sweetheart deal with AT&T Broadband,
the MSO Comcast acquired late last year.
Comcast has balked at the so-called contribution agreement between DMX parent
Liberty Digital Inc. and AT&T Broadband, with its 20-year term. The
Philadelphia-based mega-MSO inherited the contract when it acquired the AT&T
So Liberty Digital, the 56 percent owner of digital-music service DMX, is
suing Comcast for breach of contract.
DMX has 10 million subscribers, according to its Web site
It is carried by EchoStar Communications Corp., which has 6 million
direct-broadcast satellite homes.
The pending litigation is very similar to Comcast's
dispute with Starz Encore Group LLC, as are the issues it raises.