Viacom Yanks Free TV Shows From Web Amid DirecTV Impasse
Satellite Operator Offering Starz's Encore Channels Through July 31

By Todd Spangler
Multichannel News

7/11/2012 3:29:08 PM

http://www.multichannel.com/article/487036-Viacom_Yanks_Free_TV_Shows_From_Web_Amid_DirecTV_Impasse.php


Viacom on Wednesday disabled access to dozens of free full-length 
episodes on its websites -- from shows including Comedy Central's The 
Daily Show with Jon Stewart and MTV's Jersey Shore -- after the media 
company's networks went dark on DirecTV in a carriage-fee dispute.

Shows for which full episodes are no longer available include: Comedy 
Central's Daily Show and The Colbert Report; Nick's SpongeBob 
SquarePants, Victorious and iCarly; Nick Jr.'s Dora the Explorer; MTV's 
Jersey Shore and Teen Mom; and TV Land's Hot in Cleveland.

Daily Show episode unavailableAccording to a Viacom spokesman, the 
company is still offering hundreds of free episodes online but chose to 
pare back the number of full-length shows available because DirecTV is 
marketing the Internet video destinations as an alternative to the full 
networks. Viacom has always intended free online episodes to be a 
promotional marketing tool for affiliates, he added.

The move affects all Internet users -- not just DirecTV subscribers, 
noted BTIG Research media analyst Rich Greenfield, who reported on 
Viacom's removal of the full-length episodes in a research note.

"While this may upset ISPs customers that do not have DirecTV, we 
believe the consumers most upset will be those that are trying to find a 
way to access Viacom content no longer available on DirecTV," Greenfield 
wrote.

DirecTV, which dropped 17 Viacom networks and additional HD channels 
shortly before midnight Tuesday, has been informing subscribers about 
how to access free episodes on Viacom's websites via directvpromise.com.

Meanwhile, DirecTV said on its website Wednesday that it will make all 
eight of Starz Entertainment's Encore channels -- including Encore 
EspaƱol and Encore Family -- available to all residential customers 
through July 31 on channels 535 to 542. "We expect the Viacom channels 
to return soon," the satellite operator said.

DirecTV claimed that Viacom is asking for a 30% rate increase, amounting 
to $1 billion over the term of the agreement (neither side is disclosing 
the length of the contract). Viacom has countered that the increase 
amounts to only "a couple pennies" per subscriber per day -- although 
that would mean it is asking DirecTV to pay at least $145 million more 
per year.

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George Antunes          Voice (713) 743-3923
Associate Professor     Fax   (713) 743-3927
Political Science       Mail: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011

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