Wednesday, January 15, 2014

TWC Could Be Off DirecTV "Long, Long Time'

The Weather Channel could stay off DirecTV for a “long, long time,” predicted David Kenny, the chief executive of the channel’s parent company, Weather Co., on the first day of the channel’s blackout on the satellite-TV service, according to wsj.com.

The Weather Channel disappeared from DirecTV’s service shortly after midnight on Monday night, after the two companies failed to come to an agreement over terms of its distribution contract. It is the first time the Weather Co.’s Weather Channel has been blacked out on any pay-TV service since it was launched more than 30 years ago.

DirecTV, the second biggest pay-TV operator after Comcast Corp., is seeking to reduce the fees it pays to carry the Weather Channel by more than 20%, according to a person familiar with the situation. The satellite-TV service says increasing use of mobile apps has reduced the value of the TV channel.

Meanwhile, Weather Co., which is owned by NBCUniversal Inc., Blackstone Group L.P. and Bain Capital LLC, was seeking an increase of one cent, the company said. The channel receives about 13 cents per subscriber a month, estimates research firm SNL Kagan.

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