DirecTV and News Corp. reach deal on Fox channels

Crisis averted. The El Segundo satellite provider was apparently seeking an all-inclusive deal that included Fox News, FX, and the sports channels Prime Ticket and Fox Sports West (a big deal this time of year). From the LAT:

Terms of the deal were not disclosed. DirecTV had complained that Fox was seeking an increase of 40%. Fox called that figure ridiculous. Cable networks and broadcast channels are typically sold on a per-subscriber basis. According to SNL Kagan, FX currently gets about 40 cents per subscriber, per month. Fox Sports West gets almost $2.70 per subscriber, per month. Sports channels are usually more expensive because of their rights fee expenses.

As is becoming common in these skirmishes, Fox took out ads that warned of a shutoff and suggesting that DirecTV customers start searching for alternatives. It's rare that the screens actually go black - just too much to lose on both sides.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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