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Another Carriage Dispute: AT&T U-verse vs. Rainbow Media’s AMC, We TV, Independent Film Channel

Phillip Dampier July 13, 2010 AT&T, Cablevision (see Altice USA), Consumer News, Video No Comments

AT&T U-verse customers may have to do without these shows if an agreement cannot be reached with Rainbow Media

AT&T U-verse customers may lose access to three basic cable networks in less than two days if a dispute over how much money AT&T should pay for the networks isn’t settled.

Rainbow Media’s AMC, We TV, and the Independent Film Channel are all threatened with removal from AT&T’s nationwide U-verse lineup as a two week extension of carriage negotiations appears to be going nowhere.

In an ironic “now the shoe is on the other foot” twist, Rainbow Media is a wholly-owned subsidiary of Cablevision Industries — the cable system serving parts of downstate New York, New Jersey and Connecticut.  AT&T is using some of the same language Cablevision used earlier this year in a dispute over fees charged by Scripps’ Food Network and HGTV, as well as Disney-owned WABC-TV in New York.  Rainbow even borrowed a page from Scripps and launched an AT&T protest site, Facebook page and Twitter account.

“AT&T is acting in an aggressive manner that puts their corporate interests ahead of their customers,” AMC said in a statement. “We are negotiating in good faith with AT&T and are hopeful that we can reach an agreement as soon as possible so that our viewers don’t lose out.”

Meanwhile, AT&T is publicly insulting Rainbow’s cable networks.

“Based on aggregate data we obtained from third party industry sources and our own subscribers, some of the Rainbow channels are among the least-watched and most overpriced per viewer compared to other major programming providers,” an AT&T spokeswoman told Deadline. “They’re also trying to force the renegotiation of a contract for one of their other channels that is not yet expired and force us to carry a new channel that wasn’t even formally presented to us until after the recent July 1 contract extension. We want our customers to know that we can’t and won’t give in to unreasonable deals that unfairly disadvantage our customers.”

Despite AT&T’s bravado, Rainbow may have the upper hand with a more aggressive outreach campaign.  AT&T’s website for U-verse has not mentioned the dispute — a potential PR mistake if it wants to argue its position about programming costs.
Rainbow is airing ads on all three of the cable networks involved warning U-verse customers they’ll lose the channels if an agreement isn’t reached by July 14th.
[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/ATT Preparing to Yank AMC 7-12-10.mp4[/flv]
Rainbow Media is informing AT&T’s U-verse customers about the potential loss of networks like AMC from its lineup.  (1 minute)

Thanks to Stop the Cap! reader Marcus for sending news of the dispute our way.

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