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17 Oct

Spectrum® Cable Customers May Lose Major Channels Over Contract Dispute with Viacom

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Contract Dispute With Viacom

Viacom Inc.® has stated that cable customers of Spectrum® will lose access to about 23 television channels because of an ongoing contract dispute. According to Viacom®, the dispute arose because it has refuted some of the unreasonable demands set by Spectrum’s parent company, Charter Communications®. Several of the major channels such as MTV, Nickelodeon, and Comedy Central will not be accessible to the customers until the two carriers reach an agreement.

According to a Viacom® statement, “Viacom® is committed to developing strong, mutually beneficial relationships with our distribution partners. While we’re making every effort to reach a new deal, Charter’s actions may force a disruption in Spectrum® subscribers’ service. Despite our efforts, Charter® continues to insist on unreasonable and extreme terms that are totally inconsistent with the market. While we’re making every effort to reach a new deal, Charter’s actions may force a disruption in their service.”

The current agreement between Charter® and Viacom® is reportedly set to expire this October 15. Due to that, it can result in a major blackout that can affect about 16.5 million subscribers. Charter® actually moved many of the channels owned by Viacom® such as MTV, VH1, Spike, Comedy Central, BET from its basic package and placed them on a high priced tier.

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Disruption In Service

Viacom® CEO Bob Bakish said about Charter’s move in August, “They don’t have the contractual right to tier our services the way they have. Still, I don’t fundamentally believe suing big customers is the way to solve problems. The better way to solve them is through engagement and exploring ways we can create value together.” Spectrum® officials have however abstained from many any comments regarding the dispute.

Charter® acquired Time Warner Cable® in 2016 that made them the second largest cable operator and fastest internet provider in the country. Previously, Charter® has engaged and settled a dispute with Fox News regarding the payments made to the channel. This has led to a scenario where Fox Networks group threatened to pull FX Network, Fox Sports, and National Geographic from Spectrum®.

Viacom® officials added that, “Viacom has made a series of very attractive offers to Charter® that are consistent with terms we’ve recently reached with other large cable operators. Importantly, these offers would enable Charter® to lower Spectrum subscribers’ bills, while also giving them more access to shows across Nickelodeon, BET, MTV, Comedy Central, and other Viacom® networks.”

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