By Suzanne Vranica
Satellite provider DirecTV said Wednesday it signed a multiyear
agreement with WeatherNation, a small weather-focused TV channel,
even as it continues talks with the Weather Channel, which it
dropped from its service because of a dispute over carriage
fees.
DirecTV began using WeatherNation in December as tensions were
mounting with Weather Channel. The new long-term pact solidifies
WeatherNation's access to DirecTV's 20 million subscribers.
The WeatherNation agreement doesn't preclude a deal between the
Weather Channel and DirecTV, who began talking again a few weeks
ago after a monthslong standoff. "We have resumed discussions with
DirecTV and hope to resolve our differences," said a spokeswoman
for the Weather Channel. A spokesman for DirecTV confirmed the
talks with the Weather Channel.
The fight broke out earlier this year when DirecTV sought to
reduce the fees it paid to the Weather Co., which operates the
Weather Channel and is owned by Comcast Corp.'s NBCUniversal,
Blackstone Group L.P. and Bain Capital LLC. The channel receives an
average of 13 cents per subscriber each month from pay-TV
providers, estimates research firm SNL Kagan.
In January, DirecTV blacked out the channel and, since then,
there has been little sign that a deal would be reached. Resolving
the problem is important for the Weather Channel since DirecTV is
the second-biggest pay-TV operator in the U.S. by video
subscribers.
The spat has highlighted the way changing media-consumption
habits can affect TV industry negotiations. DirecTV has argued, for
example, that the proliferation of weather information available on
the web and mobile device has reduced the value of a TV channel
focused on weather.
Write to Suzanne Vranica at suzanne.vranica@wsj.com
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