October 1, 2014
Viacom is firing back at Suddenlink over the dropped channel dispute. Here is some of what Viacom has posted at www.keepviacom.com.
Suddenlink has chosen to drop 24 networks. Networks include MTV, Nickelodeon, Comedy Central, VH1, CMT, Spike, TV Land, BET, Logo, MTV2, Nick Jr., Nicktoons, TeenNick, Nick Too, mtvU, MTV Jams, MTV Hits, Vh1 Classic, VH1 Soul, CMT Pure Country, Palladia, Centric, Tr3s, and EPIX.
Suddenlink reneged on its own proposal. On September 30, after Viacom agreed to Suddenlink’s latest proposal, Suddenlink took the unprecedented step of rejecting its own offer and informed Viacom that it was dropping our networks. Over the course of the five month negotiation, we presented Suddenlink with a number of options and solutions to help us reach a mutually beneficial distribution agreement. We are surprised and extremely disappointed to be in this situation where Suddenlink has rejected the very same deal they presented to us.
Suddenlink is not keeping its commitment to its customers. Suddenlink claims that it “stands up” for its customers to bring them the best service by negotiating in good faith with programmers. However, they have done just the opposite. It took months after we made our first proposal before Suddenlink would even respond to us. After weeks of progress Suddenlink suddenly stopped negotiating, would not return our calls and announced that they were dropping our networks. Then they rejected our offer to accept their proposal. We want to keep our networks on the air, but Suddenlink reneged on their own offer and is no longer willing to negotiate. As a result, the customers they claim to value are being negatively impacted.
Suddenlink’s “replacement channels” are hardly replacements. Suddenlink customers no longer have access to Viacom’s #1 rated networks, which include many of the most popular and most-watched programming on cable. Although Suddenlink has said it is providing customers with alternative channels, these channels are far less popular and in many cases the very same channels that its customers already have access to and actually pay for, but simply exist on a different channel number.
Suddenlink is not listening to their customers. Although Suddenlink claims to have “surveyed” its customers, it is evident that customers were never asked about new channel options, or in many cases even familiar with the ones now being offered. Suddenlink has chosen to speak for its customers rather than listen to them, ignoring pleas to bring these channels back.
Suddenlink does not have to raise its customers’ bills. Suddenlink operates a very healthy business. It is a highly profitable, privately-owned company – hardly the small, hometown TV provider it claims to be. In 2013 alone, Suddenlink reaped more than $2.2 BILLION in revenue and $850 MILLION in profit, a margin exceeding 40%. Suddenlink seems much more concerned with its profits than its customers.
Viacom’s channels remain the most-watched on TV. Nearly one in five cable viewers is watching one of our networks at any given time. Nickelodeon is the #1 network for kids and delivers the #1 animated show on TV with SpongeBob SquarePants; MTV is the #1 network for young adults with 3 top shows on cable including Teen Mom 2, Teen Wolf and Finding Carter; Comedy Central is the #1 brand in comedy with The Daily Show with Jon Stewart and The Colbert Report; BET is #1 among African Americans with 3 top sitcoms The Game, Real Husbands of Hollywood and Let’s Stay Together; VH1 is the most watched cable network on Monday nights with Love & Hip Hop and Hit The Floor; and CMT is the #1 brand in country music entertainment.
Viacom networks are a great value for Suddenlink. Viacom’s channels make up only 8% of what Suddenlink pays for programming but nearly 20% of Suddenlink’s customers are watching our networks at any given time. On top of that, our shows account for more than 30% of all on demand viewing.
The cost of sports is driving up cable bills - not the cost of Viacom networks. Every month, Suddenlink pays an extraordinarily high and disproportionate amount of money to networks that carry sports. Suddenlink even recently complained about the issue on its website. Meanwhile, Suddenlink just renewed an affiliation agreement with ESPN and is now paying nearly the same price for 1 channel than we are asking for our 24 combined. While sports account for an average of only 6% of all TV viewing, they can account for as much as 75% of all programming costs.
Viacom continues to work hard to reach a distribution agreement. We remain committed to reaching a deal so that our viewers will be able to watch their favorite shows. Suddenlink customers need to make their voices heard so that Suddenlink returns these channels to the lineup.
September 30, 2014
In a press release from Suddenlink, they describe how they have had considerable success in reaching new agreements with the likes of AMC, Fox, Turner, Disney, Discovery, and many other channel owners. However, despite their repeated requests for Viacom to reconsider, Viacom rejected every offer Suddenlink made and then removed its channels.
Starting Wednesday, October 1, Suddenlink introduced other channels for their customers. The channels were chosen based on phone and email surveys, social media polls, and calls to their care centers.
Because Viacom still demands a significant pay increase, despite declining viewership, Suddenlink asked for a price for only the Viacom channels (like TV Land, Comedy Central, and others) that their customers watch the most. Viacom responded by further increasing its price demands.
Earlier this year, Viacom forced sixty other companies to do the same.
Channels being dropped include BET, Centric, CMT, Comedy Central, EPIX, Logo, MTV, Nickelodeon, Paramount, Spike, Tr3s, TV Land and VH1.
Visit ByPopularDemand.com and enter a zip code to learn more about the channels in your area.
