Small cable systems across the country and on overseas military bases are being granted hourly reprieves that are keeping up to 24 Viacom-owned cable channels on the air after negotiations to extend an agreement with their program buyer stalled.

Cable operators belonging to the National Cable TV Cooperative, which represents independent cable systems on cable programming matters, report Viacom is demanding an unprecedented 100 percent rate increase for its networks and a guaranteed rate hike of 10% annually on each of its channels.

Viacom’s demands would cost each subscriber at least $4 a month, noted Jack Capparell, general manager of Service Electric’s cable system in the Lehigh Valley of Pennsylvania. Service Electric is a private, family owned cable business with 250,000 subscribers in central and northeastern Pennsylvania and northwestern New Jersey.

The impasse also affects cable systems serving American military bases. Americable has notified subscribers in Yokosuka, Atsugi, Iwakuni, and Sasebo, Japan Viacom was likely to cut off 10 of its cable channels to military families sometime today. Allied Telesis, which offers service to Air Force bases in Japan is also expected to lose programming.

NCTC members complain Viacom requires cable systems to carry nearly all of its lineup, including lesser-known channels few customers have even heard of, much less want. Even if a cable system chooses not to air a Viacom channel, Viacom’s contracts require cable providers to pay for them if they want to carry Viacom’s most popular networks.

Some cable systems are breaking away from NCTC’s negotiations and opening one on one talks with Viacom. Metrocast secured an agreement for its customers earlier today by negotiating directly with Viacom.

For most affected cable operators, there is a ‘wait and see what happens’ approach. Others, including Cable ONE, have already moved to replace the Viacom networks with other channels.

“Viacom asked for a rate increase greater than 100%, despite the fact that viewing is down on 12 of their 15 networks – some by more than 30% since 2010,” said Cable ONE. “We asked Viacom to either reduce their rates or allow us to drop some of their less popular networks to reduce the total cost. They refused these reasonable requests.”

Earlier today, Cable ONE didn’t wait for Viacom to pull the plug. They pulled it themselves.

“Cable ONE has let these networks go and expects to add many top-rated networks you’ve requested and expand several other highly requested networks to our most popular level of service. Some of the new networks include BBC America, Sprout, Investigation Discovery, the Blaze, Hallmark Channel, National Geographic, TV One, Sundance, and more,” said the company, which expects to publish a full list of the new networks on Wednesday.

Viacom responded with a news release tailored for each affected provider:

We are offering Service Electric a double-digit discount off of our standard rate card. It is a better deal than HUNDREDS of other TV providers in the country have agreed to. We have been actively trying to get a deal done with Service Electric for months and they have refused to negotiate in any meaningful way. And now, on top of this, Service Electric is throwing out numbers which simply aren’t true. Our expiring deal with Service Electric is nearly five years old. In that time, we have been great partners and given Service Electric more channels, more on demand content and access to our content beyond the TV – at no additional cost. We don’t understand why Service Electric has chosen to negotiate in this manner. And now, as a result of their lack of interest in coming to a mutually beneficial agreement, you are at risk of losing 19 Viacom networks. We are serious about getting a deal done.

Virtually the entire state of Alaska is also affected.

“We’ve unified to fight for Alaskans and to work toward a fair, long-term agreement that keeps prices stable for our customers,” said Paul Landes, GCI senior vice president. “Viacom wants a rate increase that is 40 times that of the rate of inflation. Alaska pay TV providers, along with 700 small to mid-sized operators nationally, are saying ‘no’ to Viacom’s take all 26 channels or nothing demands.”

GCI is joined by Alaskan providers MTA and KPU in the dispute.

[flv]http://www.phillipdampier.com/video/Cable ONE Viacom Channels Removed New Channels Added 4-1-14.mp4[/flv]

Cable ONE released this video earlier today informing customers they were dropping Viacom networks. (1:00)

Can’t get enough Jersey Shore?

Customers of Verizon FiOS can now watch selected full length episodes of that, and several other MTV series free of charge on a new online video website for authenticated cable/satellite customers.

MTVNow delivers at least a handful of episodes of their regular series — mostly reality shows.

“It’s clear that today’s consumers want to access their video programming anytime, any place, and Verizon continues to make that possible with online programming from partners like MTV Networks,” said Terry Denson, vice president of content strategy and acquisition for Verizon.

FiOS TV customers will also get access to MTV Networks’ Comedy Central and Nickelodeon online soon.

Verizon customers will be authenticated by using their registered Verizon Online user names and passwords that verify they are existing pay-television subscribers.  If a customer only receives Verizon’s broadband service, they will not be able to access the service.

It’s part of the industry’s TV Everywhere project designed to stop customers from cord cutting their cable/satellite television packages.  By locking out access to popular shows, providers hope to avoid losing customers to a broadband environment where television shows are available free for watching.

But Verizon still faces licensing restrictions that limit the number of shows available to viewers at any one time.  Only about seven episodes of Jersey Shore, for example, were available.  Other series were limited to the last month of programming — a very familiar experience for Hulu visitors.  So are the commercials.

In addition to “Jersey Shore” and “Teen Mom 2,” Verizon and MTV Networks are providing FiOS TV customers with online access to MTV shows like ” Teen Cribs,” “True Life,” “The Real World: New Orleans” and “I Used To Be Fat.”  MTV will make additional shows available online soon including “The Hard Times of RJ Berger,” “Cribs,” “The Real World: Las Vegas” and “Rob Dyrdek’s Fantasy Factory.”

Verizon customers who subscribe to FiOS TV are able to watch the MTV shows on their personal computers or laptops – at home or away – using any broadband connection.  Using their Verizon Online user names and passwords, FiOS customers can access the online programming at either www.verizon.com/fiostvonline or www.mtv.com/tve.