Join The Discussion

 

Group buys former Armour meatpacking site in Stockyards

The 16.8-acre site of the historic, former Armour meatpacking plant in Fort Worth’s Stockyards has changed hands, and its new owners aren’t saying anything about their plans. Chesapeake Land Development Co., which bought the site

read more >

Fresh Ebola fears hit airline stocks

DALLAS (AP) — News that a nurse diagnosed with Ebola flew on a plane full of passengers raised fear among airline investors that the scare over the virus could cause travelers to avoid flying.

read more >

Social House Fort Worth plans to open mid-November

Social House has leased 5,045 square feet at 2801-2873 W Seventh St. in Fort Worth, according to Xceligent Inc.

read more >

Ski Grand Prairie? TCU, UTA grad helping bring snow to Metroplex

For Levi Davis last week may have been a career peak, in more ways than one.

read more >

GE rises most in year with equipment order increases, including at Fort Worth locomotive unit

NEW YORK — General Electric Co. beat analysts' profit estimates in the third quarter as Chief Executive Officer Jeffrey Immelt squeezed more costs from the manufacturing units.

read more >

Stormclouds as DirecTV drops Weather Channel

 

Andy Fixmer
(c) 2014, Bloomberg News.
LOS ANGELES — DirecTV, the biggest U.S. satellite TV service, lost The Weather Channel from its lineup after failing to secure lower fees.

The channel owned by Comcast Corp.'s NBCUniversal and private equity firms Blackstone and Bain Capital was unavailable from 12:01 a.m. New York time, according to an e-mailed statement from Atlanta-based The Weather Channel. DirecTV is seeking a "substantial" reduction in monthly carriage fees, David Kenny, chairman and chief executive officer of The Weather Co., the channel's parent, said in a phone interview before the statement was released.

Cable networks with smaller audiences such as The Weather Channel are bearing the brunt of pay-TV carriers' efforts to limit cost increases, as the most-watched cable and broadcast networks demand more. The Weather Channel is even more vulnerable because viewers can get up-to-date information on smartphones or the Web, and watch local TV or a 24-hour cable- news channel when there is a storm in their area, said Christopher King, an analyst with Stifel Nicolaus & Co.

"Carriage fees are an ongoing area of contention," King, who recommends DirecTV shares, wrote in an e-mail. "It's difficult for me to say whether we need a channel dedicated to weather."

DirecTV, with 20 million subscribers, is seeking to cut the fee it pays The Weather Channel by 20 percent, the Wall Street Journal reported Monday.

The channel had asked for a 1-cent increase in the monthly subscriber fee, Kenny said.

DirecTV is in talks for "an agreement to return the network to our line-up at the right value for our customers," Dan York, chief content officer, at the El Segundo, California- based company, said in an e-mailed statement.

The Weather Channel averaged 13 cents a month per subscriber in 2013 and in 2012, according to estimates from researcher SNL Kagan. By comparison, USA Network, the most- watched U.S. cable channel with an average prime-time audience of 2.43 million viewers, received 71 cents a month for each subscriber last year.

"This is not a big increase and we haven't had anyone else balk, Kenny said. ''This is an incredibly aggressive stance.''

The Weather Channel, available in 100 million U.S. homes, averaged 214,000 daily viewers in 2013, down from 264,000 in 2011, according to data provided by Nielsen. The audience surged to 709,000 during Hurricane Sandy and 326,000 during this month's Polar Vortex that led to sub-freezing temperatures across the U.S.

NBCUniversal, which holds a 25 percent stake in The Weather Channel, is a passive investor and isn't involved in the distribution talks, Kenny said.

DirecTV began carrying WeatherNation, a competitor, in the weeks before the contract's expiration. AccuWeather Inc. announced plans Monday to start its own 24-hour weather channel in the third quarter.


— With assistance from Scott Moritz in New York.

 

< back

Email   email
hide
Ebola
How worried are you about Ebola spreading?