Distribution Feud at Center of Versus/DirecTV Dispute
by Leland Roling on Oct 13, 2009 2:01 PM EDT
in News
31 comments
The Versus/DirecTV feud continues to anger WEC fans along with fans of the NHL as a rumored "pricing" dispute has taken Versus off DirecTV's network as of August 31st, leaving MMA and hockey fans without the extensive list of games and events for their enjoyment.
670 AM The Score in Chicago talked with Versus President Jamie Davis roughly an hour-and-a-half ago regarding the current situation and what will be done regarding the network being dropped from DirecTV. Paraphrased from my own listening of the broadcast:
Negotiations were in good faith throughout the summer, but the network was dropped from DirecTV on August 31st due to what has been relayed as a pricing problem. Davis stated that DirecTV stated that it was about pricing, but Versus offered the same exact price per subscriber to DirecTV instead of the previously stated amounts.
Matt Spiegel and Danny McNeil on the "Danny Mac Show" talked about the rumors that Versus was getting 21 cents per subscriber, and that they were rumored to have raised the price to 26 cents per subscriber. Davis indicated that, while he couldn't disclose the price, it was exactly the same as it was previously.
Davis indicated that the real reason for the problems were that DirecTV wanted to package Versus into a new tier of programming that would likely make subscribers to DirecTV have to pay more money or a monthly fee for that package that included Versus. Versus did not want to do so because the sole purpose of a deal would be to get Versus into as many homes as possible, and a new tier would limit that possibility.
Davis stated that they have been picked up by DiSH network, but they are working continuously to bring Versus back to DirecTV as quickly as possible. Both sides are talking right now, and talks have not stalled as of yet.
This is an interesting development than the previous reports we've heard. Versus is easily winning the public relations war in this feud with DirecTV as DirecTV has taken the stance of being completely silent about the ongoing talk of a new deal with Versus. Versus is simply wanting to put their channel on as many eyes as possible, and they definitely have the numbers to support that. They've gained some of the best ratings the NHL has received in nearly a decade, and they are bringing the WEC solid numbers as well. It is one of the highest growing sports networks in the nation, so getting a new deal will only continue to help it grow.
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Mediacom Cable sucks too
I live in central Illinois and have Mediacom for my cable provider and Versus is no longer included with the package I have. I would have to order a more expensive package to get Versus back. So no more WEC shows for me I guess. Rotten bastards, I fucking hate Mediacom!!!!!!!!!!!!!!!
by gremlin1496 on Oct 13, 2009 2:14 PM EDT reply actions 0 recs
I live in Central IL as well, but I have Comcast. I’m able to get both Versus and HDNet, and HDNet is actually free for some reason. We were under the Insight Communications umbrella, but Comcast bought them out and honored the current deal.
Follow me on Twitter @lelandroling
"Two things are infinite: the universe and human stupidity; and I’m not sure about the universe." - Albert Einstein
by Leland Roling on Oct 13, 2009 2:26 PM EDT up reply actions 0 recs
sadly we only get Mediacom here, no options. If I lived a short distance away in Rantoul I could get comcast.
by gremlin1496 on Oct 13, 2009 2:44 PM EDT up reply actions 0 recs
Ugh, Rantoul. Where do you live, if I may ask? I’m from the small farming community of Gilman originally, born up north though.
Follow me on Twitter @lelandroling
"Two things are infinite: the universe and human stupidity; and I’m not sure about the universe." - Albert Einstein
by Leland Roling on Oct 13, 2009 2:46 PM EDT up reply actions 0 recs
Been in and through Gilman many times. Grew up around Forrest/Fairbury and now live in Fisher.
Do you make it to local MMA shows, Bloomington, Decatur, Pekin? You may have seen some of my guys fight.
by gremlin1496 on Oct 13, 2009 2:54 PM EDT up reply actions 0 recs
Just for the record I could not be paid to live in Rantoul.
by gremlin1496 on Oct 13, 2009 3:00 PM EDT up reply actions 0 recs
Jesus, you live next door to me basically.
Yeah, I’m very familiar with Forrest/Fairbury area, made frequent trips to Fisher as well as a part of sports in HS. I make the Bloomington shows when they come up, but I haven’t made any lately. I’ll probably hit the Clash at the Coliseum in December.
Follow me on Twitter @lelandroling
"Two things are infinite: the universe and human stupidity; and I’m not sure about the universe." - Albert Einstein
by Leland Roling on Oct 13, 2009 4:25 PM EDT up reply actions 0 recs
Cool. There will be 4 or 5 guys from the club I help train at fighting at that show.
by gremlin1496 on Oct 13, 2009 6:20 PM EDT up reply actions 0 recs
Flipside
Yes, Versus has done a pretty good job raising the NHL’s ratings over the last few years and they do report decent ratings with WEC. But DIrect TV represents a pretty huge chuck of their viewing audience and they know that. This is simple business, and while as an MMA fan I root for WEC to get back on the air for Direct TV( I am a direct TV subscriber) I also understand that Direct TV has a business to run and needs to look out for themselves, especially when settling the dispute ultimately puts money in their competitor’s pockets as comcast owns versus.
by Nick Travaglini on Oct 13, 2009 2:32 PM EDT reply actions 0 recs
Correct, and Davis stated he absolutely wants DirecTV back. They picked up the lost subscribers via DiSH, but DirecTV would just add their subscribers back on top and make them more money.
Follow me on Twitter @lelandroling
"Two things are infinite: the universe and human stupidity; and I’m not sure about the universe." - Albert Einstein
by Leland Roling on Oct 13, 2009 2:38 PM EDT up reply actions 0 recs
Its all money left on the table. They still have all the same overhead and none of that being added to the bottom line profit. The question is will Directv lose enough subscribers for them to care.
I think Versus will be back on Directv by november/december.
by szucconi on Oct 13, 2009 2:52 PM EDT up reply actions 0 recs
i doubt it
I know Directv has been offering a lot of stuff for free if you call and complain about not getting Versus. Free NHL Centre Ice for the season or Showtime. I would threaten to leave as well but Sunday Ticket is too amazing. I just doubt that people will leave solely because of Versus.
by TJ3117 on Oct 13, 2009 2:58 PM EDT up reply actions 0 recs
I am a directv customer as well as a business owner as well. I understand they have a business to run but one main business necessity you are overlooking is called customer service. Its no secret that comcast owns versus as well as other networks owning other channels being broadcast through directv. What they are doing is a great disservice to their customers. The article is stating that the price is the same they just want you to have to upgrade your service package and pay more money to get channels like versus. That’s ridiculous if its not costing them more money purchase versus especially if their customers, myself included signed up for directv with versus included.
by matt_spp on Oct 13, 2009 3:00 PM EDT via mobile up reply actions 0 recs
Versus/Directv
As a hockey fan and MMA fan I am extremely disappointed Versus is not on Directv at the moment. Especially as a Blackhawks fan, 9 games will be missed, including last nights unbelievable come back win over the Flames (thankfully I watched a Calgary feed online). I kinda understand were both sides are coming from but Versus and the NHL will have to do something soon. Versus is a sports network, and Directv caters to sports fans (ie. Sunday Ticket). So placing Versus into a sports tier only makes sense. I can deal with missing WEC shows and the Hawks for 9 games outta the year by going to a bar and watching. However, once the Stanley Cup starts, that might be a problem but that isn’t til April. Otherwise I don’t miss the channel that much and I think Versus will realize that soon and come to an agreement of putting Versus into the Sports Tier of Directv.
by TJ3117 on Oct 13, 2009 2:47 PM EDT reply actions 0 recs
I hope they settle this asap, I’ve already missed the Caps opening night and the latest WEC show. Like you said this will REALLY hurt during the NHL Playoffs
"Let's kick some names and take some a$$"
by StayGoldLikeFlair on Oct 13, 2009 5:05 PM EDT up reply actions 0 recs
“It is one of the highest growing sports networks in the nation.”
They must be high to have lost DirecTV.
by Ty Lannister on Oct 13, 2009 3:06 PM EDT reply actions 0 recs
Because it’s just that simple, I’m sure.
by Phildo on Oct 13, 2009 4:10 PM EDT up reply actions 0 recs
So what is Comcast’s motivation for doing a deal with DirecTV anyway? By keeping Versus off of DirecTV, it creates a selling point for cable companies trying to lure hockey and MMA fans, no?
Sergio Non,
MMA writer, USA TODAY
http://mma.usatoday.com
by Sergio Non on Oct 13, 2009 6:44 PM EDT reply actions 0 recs
comcast is not available everywhere for starters, and I don’t get the whole exclusivity thing.
I think their better off getting their channel in the most homes, period. Running the channel and running the cable company are separate things.
by Phildo on Oct 13, 2009 6:51 PM EDT up reply actions 0 recs
“I think their better off getting their channel in the most homes, period.”
Is being off DirecTV good for Versus? Probably not. Is it good for Comcast? Sure, if it can siphon off just 3/10ths of a percent from DirecTV’s subscriber total.
DirecTV’s 18 million subs nets Versus about $3.78 million monthly on a carriage fee of 21 cents.
If Comcast can lure just 62,000 subscribers (0.3% of DTV’s subs) away from satellite at an average of $61.30 (Comcast’s price for its Digital Starter cable package), that’s $3.8 million monthly. That’s $1.2 million in added annual revenue for Comcast, versus keeping Versus on DirecTV at the current carriage rate.
Is it all that unreasonable to assume that there are at least 62,000 hardcore fans of the NHL (average regular season viewership: 310,000), WEC (531,000 viewers for the last non-Torres, non-Faber show) and Tour (246,000 average per stage this year) who will go wherever they can get their sports fix?
At a 26-cent carriage fee, the math changes a bit. Versus would take home $4.68 million monthly, equivalent to a bit more than 76,300 Comcast Digital Starter subs.
Sergio Non,
MMA writer, USA TODAY
http://mma.usatoday.com
by Sergio Non on Oct 13, 2009 9:45 PM EDT up reply actions 0 recs
It’s not that simple.
yes, it only takes 62,000 people to make up the money they would receive directly from DirecTV, but what about commercials that the network airs?
It’s great that you get that 1.2 million dollars made up, but advertisers are not going to be happy if the network is available to 17 million people less than it was before, and that is the money that they need to sign the NHL and the WEC, so that money disappears, your 62,000 subscribers disappear, and Vs and Comcast are left with nothing.
by Phildo on Oct 13, 2009 11:45 PM EDT up reply actions 0 recs
I really need to do these things when I’m not distracted or tired. 62K in new subs is basically a break-even point, not an extra $1.2 million in revenue (it is however, a measly $120K added revenue). Almost as important from Comcast’s point of view, though, is the loss of revenue for DirecTV. If you can hurt your main rival without hurting yourself, it’s a win, isn’t it?
But regarding advertising — rates are based on Nielsen ratings, not audience reach. Versus says its NHL opener garnered its best ratings ever, so I’m not sure DirecTV has much leverage there.
Sergio Non,
MMA writer, USA TODAY
http://mma.usatoday.com
by Sergio Non on Oct 14, 2009 3:17 AM EDT up reply actions 0 recs
That’s silly.
The rates have to be based on boths. The ratings are adjusted based on reach, but if you think a show on cbs and a show on basic cable getting the same ratings would get the same money from advertisers you’re out of your mind. What good is a rating if the network has no reach?
by Phildo on Oct 14, 2009 7:58 AM EDT up reply actions 0 recs
sergio non
All of your although your argument is well informed and backed up by a lot of good points there’s something that your forgetting. Its called a contract. When you sign up for directv you commit to an 18 month contract in most cases. For this reason they’re not going to get many customers this way because there’s an early termination fee and a fee for every month you have left on your contract and you must return your equipment (dish and receivers) or they charge you for that too. That’s why I think direct is screwing their customers they know either way they got them by the twins. Think about it they haven’t had to pay for versus for how long now? But yet my bill hasn’t gone down or anyone else’s so they have all that money. Now their gonna turn around and say oh just another 5 to 10 bucks you can get it versus back. Why? I signed up for the directv package with it included but now even though it doesn’t cost directv any more your going to charge me more for it anyways? I’m so pissed at directv if I could get out of it I would.
by matt_spp on Oct 13, 2009 11:51 PM EDT via mobile up reply actions 0 recs
Just as a quick follow-up, I was told today by someone at the network that 14 million DirecTV subscribers had Versus — and since the DTV contract ended, Versus has picked up 10 million homes from other cable companies and Dish Network, which is currently offering Versus as a free trial.
Versus is still talking to DirecTV and continues to say that it’s not asking for an increase in fees, but merely wants to stay on the service tier that it had under the previous contract.
Sergio Non,
MMA writer, USA TODAY
http://mma.usatoday.com
by Sergio Non on Oct 14, 2009 11:09 PM EDT up reply actions 0 recs
According to Davis, this has nothing to do with Comcast at all at any level. Davis stated that it was specifically a problem between Versus and DirecTV. Versus wants MAXIMUM exposure while DirecTV wants to make more money by packaging it in a tier. That’s the debate.
Follow me on Twitter @lelandroling
"Two things are infinite: the universe and human stupidity; and I’m not sure about the universe." - Albert Einstein
by Leland Roling on Oct 13, 2009 7:46 PM EDT up reply actions 0 recs
Davis will say what he has to say. It might even be true, but ultimately, Comcast is Jamie Davis’ boss.
Sergio Non,
MMA writer, USA TODAY
http://mma.usatoday.com
by Sergio Non on Oct 13, 2009 9:25 PM EDT up reply actions 0 recs
Yeah, I don’t agree.
Regardless of the huge feud that Comcast has had with DirecTV, I don’t think it comes down to Comcast trying to have exclusivity because it doesn’t make any sense. Versus isn’t that size at all yet, and probably won’t ever be without being on other providers, period.
Follow me on Twitter @lelandroling
"Two things are infinite: the universe and human stupidity; and I’m not sure about the universe." - Albert Einstein
by Leland Roling on Oct 14, 2009 9:18 AM EDT up reply actions 0 recs
DirecTV is a joke.
I have Cox, and while I don’t have HDNet, I do have Versus. I don’t understand why DirecTV keeps on hammering home the point of them being cheaper, when in all reality I’d be paying almost $50 more a month to have everything I have with my cable company on DirecTV.
DirecTV needs to get Versus back on the air without placing them in a special sports tier. I couldn’t imagine them doing this with ESPN or Fox Sports. It’s a traveshamockery…
Don't argue for the sake of arguing....
by Screwface on Oct 13, 2009 8:37 PM EDT via mobile reply actions 0 recs
Its interesting that they mention being on Dish Network because Vs. is not available on the mid-tier package w/Dish. You have to purchase the upper-tier package to get that channel and you are basically paying and extra $10/month for Vs. and some other crap you don’t want. It sounds like they are trying to do the same thing at Direct TV.
I can understand why Vs. would not want to do that. I have the 200 channel Dish Network package and the only time I see Vs. is when they show it for free. I am sure there are a lot of Direct TV subscribers that would not pay the extra money just for Vs. and some other worthless channels.
"It would appear that the strain was more than he could bear".- Doc Holliday
by MyFistYourFace on Oct 13, 2009 10:54 PM EDT reply actions 0 recs
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