The two companies are trying to reach a deal that would allow DirecTV to continue distributing 17 Viacom channels — including MTV, VH1, Nickelodeon, BET, CMT, Spike and Comedy Central.
A blackout of those channels is set for Tuesday at midnight ET if a deal isn't reached.
UPDATE, July 11 at 12:40 a.m. ET: DirecTV has released this statement, detailing news that it has removed the 17 channels:
"DIRECTV customers were left without Nickelodeon, MTV, Comedy Central and 14 other channels today, after Viacom dropped its networks from DIRECTV at approximately midnight EDT. DIRECTV executives reached out to Viacom both yesterday and today with a new proposal and a request to keep the channels on while we continued to negotiate, but never heard back, so DIRECTV had to comply with their demand to take the channels down or face legal action."
The dispute burst across Twitter, Facebook and YouTube on Tuesday before the blackout.
MTV, for example, employed the hashtag #WhenDirecTVDrops?, while DirecTV used #DirectvHasMyBack. Both hashtags got lots of love from people — including many celebrities — following the dispute. "Direct TV" was trending on Twitter for much of the day.
Tonight @DIRECTV is dropping @MTV! Call them now 800-531-5000 to demand they #KeepMTV For more info: on.fb.me/L5OGIx #WhenDirecTVDrops
— MTV (@MTV) July 10, 2012
@DIRECTV is dropping MTV and that means no more SNOOKI & JWOWW so call 800 531 5000 to stop them! on.fb.me/NcTksV#whendirectvdrops
— NiC0LE P0LiZZi (@snooki) July 10, 2012
DIRECTV is not removing Nick, MTV, Comedy! TV Land and other Viacom channels => directvpromise.com #DIRECTVHasMyBack
— DIRECTV (@DIRECTV) July 10, 2012
To be clear DIRECTV has every intention of keeping Viacom channels up until we get a deal done. Read more => directvpromise.com
— DIRECTV (@DIRECTV) July 10, 2012
Dish Network was embroiled in a similar feud with AMC, resulting in Dish dropping AMC on July 1.
DirecTV says Viacom wants customers "to pay over 30% more to keep the same channels you are already receiving," which the service provider equates to more than $1 billion.
Viacom, which on Monday said "DirecTV has rejected all of our proposals to renew our agreement," responded to those numbers, saying they're misleading:
"DirecTV is throwing around some big numbers that are misleading. Here's the truth: Viacom is asking DirecTV for an increase of a couple of pennies per day per subscriber. That's far less than DirecTV pays other programmers with fewer viewers than Viacom. Viacom has always been open to negotiating and hopes to get a deal done."
Viacom also leveraged Facebook and YouTube to bring attention to the dispute. Its WhenDirecTVDrops page (see below) was created to inform its viewers about the situation. Viacom claims 26 channels, rather than 17, are involved.
Viacom issued another statement Tuesday at 9:45 p.m. ET, just hours before the reported blackout:
"With tonight's midnight deadline fast approaching, DirecTV is doing a lot of spinning, and very little to get a deal done. Viacom's team is ready and willing to negotiate. While we wait for DirecTV to come back to the table, let's take a minute to separate fact from fiction. … For as many viewers as we deliver for DirecTV, we believe we've earned the right to reasonably update that deal."
DirecTV, on the other hand, sent several tweets after Viacom released that statement:
Viacom & DIRECTV share the responsibility of putting you 1st, we hope to reach an agreement soon & keep your bill low. #DIRECTVHasMyBack
— DIRECTV (@DIRECTV) July 11, 2012
Please visit directvpromise.com for the up-to-date information about our ongoing talks with Viacom. #DIRECTVHasMyBack
— DIRECTV (@DIRECTV) July 11, 2012
Who is in the right here? Give us your take in the comments.
Thumbnail courtesy of iStockphoto, tomispin.
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