DirecTV and Weather Channel Resolve Dispute That Dragged On for Months WSJ
DirecTV and the Weather Channel have reached an agreement that will put Weather Channel back on the DirecTV programming lineup, The Wall Street Journal Reports. The dispute had been dragging on for several months.
"As part of the deal, DirecTV agreed to a small increase in the fees it pays to Weather Channel, although the increase will be less than the penny a subscriber a month the channel wanted, according to a person familiar with the matter. Weather Channel now receives about 13 cents per subscriber a month, estimates research firm SNL Kagan," the story reports.
The report adds: "Still, any increase marks a retreat for the satellite operator, the second biggest pay-TV company, which serves about 20 million subscribers. DirecTV had wanted to severely reduce the fees it pays Weather Channel, the Journal has previously reported, arguing that consumers were growing more reliant on the Web and mobile devices for weather information. The dispute highlighted how changing consumer media habits are affecting the value of pay television channels. The Weather Channel was taken off DirecTV service in mid-January."
Sources familiar with the situation told the publication that Weather Channel agreed as part of the accord to increase the amount of airtime it allocates for weather-related news.
"The TV channel has revamped its programming over the past few years to rely less on weather forecasts, adding reality TV programs, among other changes. It also hired high-profile talent, including Sam Champion, the longtime "Good Morning America" anchor," the story reports. "DirecTV had been critical of the reduced reliance on weather, noting that 40% of the Weather Channel's content is now reality programming."