DirecTV Threatens to Keep Dropping Weaker Networks to Fight Price Increases THR

DirecTV executives said Thursday that they are prepared to drop smaller, less popular channels--as the company recently did with Comcast's G4 network--in order to combat continued program fee increases, reports The Hollywood Reporter

Executive VP of Content Strategy and Development Derek Chang said at the company's investor day in New York that DirecTV and other distributors continue to face program fee increases, which in the case of sports often run in the double-digit percentage range, and have noticed a "clear shift of leverage" to content owners, which are often part of major conglomerates, THR said.

He added that distributors don't have "a bottomless pool of money," the report said, and as a result, DirecTV in certain cases will not renew carriage deals with channels that are "not necessary or not worth" their cost.