Versus-DirecTV Issue: Distribution, Not Pricing

Leland Roling of Bloodyelbow.com provides a transcript of a radio interview that features Versus President, Jamie Davis, talking about the DirecTV-Versus impasse:

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.

 Payout Perspective:

The impasse took another turn yesterday as Versus President, James Davis, alleged that no price increase has been tabled. Rather, the dispute is due, in his mind, to DirecTV’s proposed packaging or bundling of the channel.

I’ll caution that we really don’t know the whole story, and by virtue of that should refrain from judging either entity.

However, it would appear – simply from observing their actions – that DirecTV doesn’t have a lot of interest in Versus. If they did, they’d probably have them back on the listing by now.

But, while it’s certainly a shame that the channel has been pulled – because they’re starting to have some success with the NHL, college football, and the WEC – the timing might also prove advantageous for Versus. A decent uptick in their ratings could serve as the shove DirecTV needs to back off from their alleged position.