After DirecTV reached agreements over the past several weeks with broadcast groups Gannett, Granite, Hearst, Red River Broadcasting, KLAS-TV and Sarkes-Tarzian to continue retransmitting broadcast stations in local markets, the satellite service ran into a roadblock with Northwest Broadcasting that has resulted in local networks going dark and public name-calling and blaming.
DirecTV says it was forced by Northwest to take down the company’s broadcast networks in five markets at midnight Dec. 31 — Binghamton, N.Y.; Medford, Ore.; Yakima and Spokane, Wash.; and Laredo, Texas. Just before the blackout, DirecTV issues a statement rebuking the group for attempting to “extort” a fee increase of more than 600% to carry Northwest’s local channels. DirecTV claims the company asked Northwest to keep the channels up while negotiations continued or bring the issue to arbitration to avoid any programming disruption to its customers, but Northwest refused and demanded the channels be taken down.
“We are appalled by the irresponsible behavior of Northwest Broadcasting, which has decided they would rather deprive our customers of their local channels, than make even an honest and good faith attempt to reach a fair deal in contract negotiations,” said DirecTV chairman, CEO and President Mike White, who was recently featured in the CBS TV series “Undercover Boss.”
“For local broadcast station owners to brazenly hold viewers hostage in an attempt to extort fees that are astronomically higher than what we pay other local broadcasters is flat out wrong. We hope that Northwest will ultimately come to the table in good faith to discuss reasonable terms and fees and they will quickly restore programming to our customers.”
Northwest President/CEO Brian Brady told Broadcasting & Cable that DirecTV is trying to squeeze a small, privately owned company. Brady, who is also chairman of the Fox affiliates board, said Northwest had negotiated with DirecTV in good faith for three months.
“In order for us to continue in the broadcast business we cannot allow Direct TV and companies like them to take advantage of their size and political muscle to bully us into subsidizing their businesses.”
With broadcasters like Northwest being granted special privileges by the federal government including free use of the public airwaves, DirecTV suggests that “Northwest has now brazenly abused that privilege when they attempt to manipulate consumers through channel blackouts and threats in order to force their unreasonable demands on distributors like DirecTV,” said White. DirecTV says the FCC plans to examine how to protect customers from the kind of behavior displayed by Northwest and other station owners, who have been involved in contentious contract negotiations this past year, and DirecTV intends to bring the matter to the attention of the Federal Communications Commission when it begins its review of retransmission rules this year.
— By Scott Hettrick