Viacom has disconnected 26 DirecTV channels including MTV, Comedy Central, and Nickelodeon. This left millions of people without content that they expected to have when creating a DirecTV account. DirecTV claimed that Viacom wanted a 30% increase in royalties for DirecTV to renew their subscription, which would be around $1 billion in total.
DirecTV claimed that this amount was too high. Viacom cut off DirecTV’s service a little bit before midnight today. DirecTV called the rate increase “unreasonable” and said that it would force DirecTV customers to pay “substantially more.”
Viacom responded by saying it was DirecTV that “dropped Viacom?s channels before our midnight deadline.” Viacom said that they “proposed a fair deal that amounted to an increase of only a couple pennies per day, per subscriber.”
Viacom claimed that “DirecTV refused to engage in meaningful conversation.” DirecTV reiterated their 30% increase stance and said that Viacom took the channels away from DirecTV viewers.
DirecTV has around 20 million U.S. subscribers and they said that they will continue to work diligently on a new agreement.