When it comes to the standoff between DirecTV and Viacom which saw Viacom's networks removed from the satellite system's lineup late Tuesday night, there's good news and there's bad news.
The good news? They're talking.
The bad? They're nowhere near a deal.
Joe Flint of the Los Angeles Times reports that negotiators for both companies have continued to talk, but the discussions haven't gotten much traction - yet.
And both sides continue to talk tough: DirecTV claims that Viacom's ratings are dropping (which is true) and that Viacom's practice of putting many of its shows online means the satellite provider shouldn't have to pay as much for the networks. (My opinion: That's probably a valid point.) Viacom, on the other hand, says that its networks only make up 5% of DirecTV's license fees but draw 20% of its viewing.
Like I said ... they're not close yet. But on one point, they do agree: Neither side wants this to last a moment longer than it has to. "We don't expect this to last too long," said DirecTV executive VP Derek Chang. "We're in open discussions and working hard to try to close a deal," added Viacom EVP for content distribution Denise Denson.
In the interim, DirecTV has given its customers free Encore programming and other channels as well to soften the blow. It's also considering possible rebates or discounts, although nothing has been decided on that front.
Stay tuned ...
