Who Won The War: DirecTV Or Viacom?
By David LiebermanDirecTV seems to have the edge in my non-scientific checks with industry watchers who monitored the contract dispute that for 10 days prevented 20M satellite customers from seeing Viacom’s 17 channels. But there are champions for both sides — and nobody outside of the companies knows enough about the financial terms to make a solid case for his or her view. Here’s what I’m told: DirecTV’s first year payment to Viacom in the seven-year deal is a double-digit percentage step up from what it was paying before, but less than the 30% that DirecTV said Viacom initially wanted. After that, DirecTV’s outlay for Viacom’s channels will rise by mid-single digit percentages each year. The deal gives DirecTV the right to stream Viacom programming to its customers — both inside and outside of their homes — via the satellite provider’s TV Everywhere program. And it doesn’t have to carry premium movie channel Epix, but has the option to pick it up.
