A + E Networks Chief Warns if possible AT & T Blackout, AT & T says "New position to gain an unfair advantage for their own channels" – Deadline
UPDATED WITH AT & T's response . Another cable network group is facing a potential blackout on AT&T platforms, including DirecTV. A month after Viacom was able to hammer out a new transport deal with AT & T after very tough negotiations, averting a blackout, A + E Networks finds itself in a similar position.
In an internal note sent today, Paul Buccieri, president of A + E Networks Group, which includes A & E Network, History and Lifetime, gives the team an update on the conversations with AT&T. amid (a) negotiations with AT & T, which owns DirecTV, and with our contract deadline, we are still far from reaching an agreement. "
The two companies' current transport agreement expires on Tuesday. In his letter, Buccieri blames the recently collected AT&T for the death.
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"While I respect them and our long-standing relationship, AT&T has not shown a willingness to negotiate reasonably," Buccieri wrote. "The agreement we seek is based on the same fair market conditions that have allowed us to offer with many other vendors. AT & T has simply not shown that they recognize the value of our programming and the high attention we have for our viewers – including AT & T's own customers. "
This is the second very difficult transportation deal AT & T carries out with a cable group since the Company completed the acquisition of WarnerMedia. The first one with Viacom itself went on an extension because an agreement could not be made within the original deadline. Buccieri claims that AT & T uses its size as an unfair advantage over smaller cable groups.
"Having recently purchased WarnerMedia, AT & T sees its intent on using its new position to gain an unfair advantage for its own channels," Buccieri said. "Many, including the US Department of Justice, were concerned that AT&T would have the opportunity and incentive to discriminate programmers like A + E Networks and others like us. It seems that concern has become a reality."
As reply to A + E Network's letter sent AT & T a statement:
We are disappointed that A & E put our customers in the middle of the negotiations. We are on the side of customer choice and value and want to keep these channels in our customers' lineups. We hope to avoid interruptions to these channels that some of our customers care about.
Our goal is always to deliver the content our customers will have at a value that also makes sense to them. We have always struggled to get the best deal for our customers and deliver the content they want to have a great value. We continue to fight for this.
Here is Buccieri's complete note:
Dear team,
Sorry to cancel your weekend, but I wanted you to hear this directly from me.
Every day, thanks to your creativity, talent and dedication, our networks deliver some of the best programs on television and serve the audience in unique and thoughtful ways. Whether it gives women a voice like the last Surviving R. Kelly; builds transparency around law enforcement through Live PD or any number of the groundbreaking HISTORY series that The Curse of Oak I s o r Project Blue Book – A + E Networks brand of storytelling is peculiar to our viewers. Consumers have more options than ever, and they choose us by millions because they find programming and community around our content that is meaningful and original.
It is a privilege to create content for our viewers. It is our passion. It is also our business. As a business, content has value. We have a responsibility for our stakeholders to get reasonable value for our content, for your efforts and for the creative community. Now more than ever, we must protect the value of creativity and content. Most of all, we owe it to our viewers to ensure that we are here for them, invest in the programming they love and trust.
Running our business in the right way, negotiations require fair deals with distributors who deliver our programming to homeowners. We have done this without our portfolio being removed from the distributor's platforms. Some of our peers can make the same demands.
At the moment we are in the middle of such a negotiation with AT & T, which owns DIRECTV, and with our contract deadline we are still far from reaching an agreement. While I have respect for them and our long-standing relationship, AT&T has not shown a willingness to negotiate reasonably. The agreement we seek is based on the same fair market conditions that have given us the opportunity to reach offers with many other suppliers. AT&T simply hasn't shown that they recognize the value of our programming and the high attention we have for our viewers – including AT & T's own customers.
Having recently purchased WarnerMedia, AT & T looks to use its new position to gain an unfair advantage for its own channels. Many, including the US Department of Justice, were concerned that AT&T would have the opportunity and incentive to discriminate programmers like A + E Networks and others like us. It seems that concern has become a reality.
Millions of households can be affected and deprived of their favorite programming if AT&T does not carry our networks on their platforms. Therefore, we will soon start communicating with all our stakeholders about this situation, including our viewers.
In the past 35 years, the A + E Networks brands have played a significant and influential role in American popular culture – from the vital perspective found at HISTORY, to the perpetual and iconic lifetime project to reimagining reality and reinventing live storytelling on A & E. We remain hopeful that AT & Ts's focus as spring will put consumers first at the end of the day.
I realize that many of you, as well as family and friends, may be AT&T or DIRECTV subscribers. Feel free to share a link to http://www.keepmychannels.com, which will be updated with relevant news and information.
We will continue to keep you informed of any updates. Meanwhile, the management team asks and everyone stays laser focused on doing what you do best: delivering amazing stories, told with the kind of heart and passion that are definitely A&E, HISTORY, Lifetime, and all A + E networks.
Sincerely, Paul