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Viacom and DIRECTV Reach a Deal, Restoring Channels After 10-Day Blackout

Viacom and DIRECTV settled their 2012 carriage dispute after a ten-day blackout, restoring the networks and adding digital-access rights.
Opened Runtime4 min Written byDocumentaryTube Team
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Viacom’s networks returned to DIRECTV on July 20, 2012, after a ten-day blackout that began when the companies failed to renew their carriage agreement. The settlement restored programming immediately and expanded customers’ digital access rights. The dispute centered on carriage fees and other terms, but the companies did not disclose the deal’s financial details.

What happened between Viacom and DIRECTV?

This was a carriage dispute: a negotiation over the fees and conditions under which a television distributor can carry a programmer’s channels. Viacom owned the networks; DIRECTV distributed them through its satellite-TV lineup. Calling this a cable-company dispute is imprecise: the networks were often called cable channels, but DIRECTV was a satellite provider.

The existing agreement was nearing expiration. After renewal talks failed, Viacom removed its programming from DIRECTV on July 10, 2012. The companies announced a new long-term agreement on July 20, and the programming returned immediately. The exact dates make the blackout about ten days, even though some contemporary coverage described the episode as a two-week dispute. CBS/AP reported the blackout and settlement dates; Viacom’s announcement confirmed the agreement and immediate return.

Which channels returned?

The companies described the restored lineup using different counts. DIRECTV said it restored 17 channels; Viacom said all 26 of its networks would return. Their announcements do not explain the precise counting difference, so neither figure should be treated as a correction of the other. The discrepancy may reflect different ways of counting the channels directly affected versus Viacom’s broader network portfolio.

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Among the networks Viacom named were Nickelodeon, Comedy Central, MTV, BET, CMT, Logo, Spike, TV Land, MTV2, VH1, VH1 Classic, Palladia, Nick Jr., Nicktoons, TeenNick, Tr3s and Centric. DIRECTV’s announcement named Nickelodeon, Comedy Central, MTV, BET, Spike, CMT and TV Land among the channels restored, plus ten others. The parties’ announcements provide the respective counts and named examples.

Why did the negotiations break down?

The central disagreement was the amount DIRECTV would pay to carry Viacom’s networks. Contemporary accounts characterized the talks as a dispute over higher carriage fees. Some reports said Viacom initially sought an increase of roughly 30%, while the eventual agreement was reported to involve an increase of about 20% over the previous arrangement. Those percentages are contemporary reporting, not figures disclosed in the official agreement. Network World covered the reported fee dispute, and the Express-News account discussed the negotiations and EPIX issue.

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What is known about the price and term?

The official announcements did not disclose financial terms. Contemporary reporting attributed to Bloomberg described a seven-year agreement under which Viacom would receive more than $600 million annually, roughly 20% more than under the previous arrangement. These are reported estimates, not confirmed contract figures. Ars Technica reported the Bloomberg-attributed term and payment figure; Engadget covered the reported increase and digital terms.

Where did EPIX fit in?

EPIX, a premium movie service partly owned by Viacom and other partners at the time, was part of the broader commercial disagreement. Viacom said DIRECTV had an option to add it; DIRECTV said the new agreement did not require it to carry EPIX. The settlement therefore restored Viacom’s principal networks without obligating DIRECTV to take the movie service. Viacom’s announcement described the option, while contemporary coverage reported DIRECTV’s position.

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What changed for viewers?

The immediate change was that affected Viacom programming returned to the DIRECTV lineup when the agreement was announced. CBS/AP put the number of affected DIRECTV customers at about 20 million at the time; that is a contemporaneous estimate, not a current subscriber count. CBS/AP reported the customer estimate and restoration.

The agreement also expanded digital distribution rights through DIRECTV Everywhere, the platform name used at the time. Customers were to gain access to Viacom programming on computers, tablets, phones and other personal devices. This was a change to the 2012 deal, not evidence that DIRECTV Everywhere remains a current service. Engadget described the digital-access provisions.

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The conflict reached beyond the satellite signal. CBS/AP reported that Viacom restricted access to some online programming during the dispute, then allowed new episodes of The Daily Show with Jon Stewart and The Colbert Report to appear on its websites as negotiations progressed. CBS/AP covered the online programming developments.

What the settlement does—and does not—tell us

The dispute shows how a channel-renewal negotiation can put viewers in the middle: when the programmer and distributor do not agree, customers can lose access while each side argues its case publicly. Here, the settlement restored the networks and extended distribution into digital viewing, illustrating that carriage agreements could cover more than a traditional television feed.

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Several consumer questions remain unanswered by the public announcements and contemporary coverage: they do not establish a general refund or credit program, disclose whether the agreement changed customers’ retail bills, or specify the exact contract value. The reported term and payment figures should therefore remain attributed to contemporary reporting rather than treated as official disclosures.

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