BALTIMORE, Sept. 20, 2019 /PRNewswire/ -- Millions of
AT&T U-verse, DIRECTV and AT&T TV NOW (formerly DIRECTV
NOW) subscribers in 86 markets are at risk of losing access to 136
television stations (including popular ABC, NBC, CBS, FOX, CW And
MyNet-affiliates) and Tennis Channel, due to AT&T's
unwillingness to negotiate fair market carriage licenses with
Sinclair Broadcast Group, Inc. (Nasdaq: SBGI).
While the previous carriage agreement between AT&T and
Sinclair was set to expire in August, Sinclair provided a five-week
extension in an attempt to avoid harm to consumers. The
current extension remains in effect through September 27th at 5:00 pm EDT and recent actions taken by AT&T
during carriage negotiations with other broadcasters should
significantly concern the millions of subscribers of AT&T and
DIRECTV who watch these stations. For these audiences, it is
crucial they make their voices heard and demand AT&T work with
Sinclair to ensure they do not lose access to the stations they
rely on for local news, sports and entertainment.
"AT&T is the largest MVPD in the country and seems intent on
using its tremendous market power to dictate to viewers which
programming from other content providers they can receive, even as
they continue to acquire content providers and push their own
content to viewers," stated David Gibber, Sinclair's Senior Vice
President and General Counsel. "Despite the tremendous market power
of AT&T, most consumers of AT&T and DirecTV do have some
other alternatives to receive our in-demand programming.
Although it would be unfortunate to lose AT&T and DirecTV as
customers, we are simply not prepared to sell our programming to
them at the below market rates they are demanding due to their
overwhelming market power."
AT&T has harmed consumers using blackouts as a negotiating
ploy during several recent negotiations with stations owned by
other broadcasters. Despite Sinclair continuing to negotiate
diligently and in good faith and previously providing AT&T with
a five-week extension, AT&T seems committed to using this
approach again and there is little optimism that a deal can be
reached by September 27th.
AT&T has dropped more than 150 stations in more than 120
markets over the past 120 days, including stations owned by CBS
Corporation, Nexstar Media Group, Northwest Broadcasting and
several other station owners.
Having acquired both Time Warner Inc. and DIRECTV within the
last several years, AT&T seems intent on using its $250 billion market cap to bully the broadcast
industry and other content providers. Ninety-nine percent of
retransmission consent deals are completed without
interruption.1 During 2019, however, nearly three
out of every four stations that have experienced a retransmission
consent disruption have involved disputes with
AT&T. 2 Now, they are attempting to
use the same failed negotiating tactics with Sinclair. If a deal is
not reached, millions of AT&T U-verse, DIRECTV and AT&T TV
NOW (formerly DIRECTV NOW) subscribers will face the proposition of
being without local news, the Fall launch of the most popular
primetime series, and major sporting and cultural events, including
NFL football, post-season baseball, and the start of the NBA and
NHL seasons.
Furthermore, if AT&T does not reach agreement with Sinclair,
almost 25% of AT&T's total subscribers, living in 50 markets
across the country, will have suffered AT&T blackouts of at
least two of the four major broadcast networks in the past two
months. This concentrated loss of service is a tremendous
disservice to their customers, who are paying AT&T for the
right to view these stations.
Sinclair has and will continue to negotiate in good faith with
AT&T to try and avoid stations being dropped, but AT&T's
pattern of insistence on terms that greatly undervalue the content
of local broadcasters will deplete the availability of diversity of
content, including local content, for viewers. Sinclair, by
comparison, routinely renews carriage agreements with major MVPDs
throughout the country, and has offered AT&T assurances that it
would not pay more for our stations than other pay TV providers.
The AT&T deal expiring September
27th is a five-week extension of a deal that has
been in place since early 2016. It is not reflective of today's
fair market value – value to which other distributors have
agreed.
"Sinclair employs more than 9,000 people in local markets
throughout the country," Gibber continued, "and our news and
investigative teams produce 2,500 hours of local news each week in
more than 80 markets across the country. Our reporting teams have
been honored numerous times with industry awards for excellence.
We are proud of the work our employees do each day in service
of our communities, and we will continue to be there for our local
communities. Sinclair also spends more than a billion dollars
annually to provide network and other content to our local
viewers. We continue to act in good faith and hope that
AT&T will agree to fair terms soon, for the benefit of all,
most importantly our viewers."
For AT&T U-verse, DIRECTV and AT&T TV NOW subscribers,
it is crucial that they voice their concerns to AT&T. Those
worried about the potential for this blackout should contact
AT&T/DIRECTV using 833-NO-TO-ATT (833-668-6288). Tell them to
get a deal done with Sinclair or you will switch to a TV provider
who has. Audiences are also encouraged to use social media to make
their voices heard, by tweeting @ATTHelp, @DIRECTV, and @ItsOnATT.
For more information, visit KeepMyContent.Com
About Sinclair Broadcast Group, Inc.
Sinclair is a diversified media company and leading provider of
local sports and news. The Company owns and/or operates 23 regional
sports network brands; owns, operates and/or provides services to
191 television stations in 89 markets; is a leading local news
provider in the country; owns multiple national networks; and has
TV stations affiliated with all the major broadcast networks.
Sinclair's content is delivered via multiple-platforms, including
over-the-air, multi-channel video program distributors, and digital
platforms. The Company regularly uses its website as a key source
of Company information which can be accessed
at www.sbgi.net.
1 https://www.nab.org/documents/newsroom/pressRelease.asp?id=5081
2 Source: NAB.
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SOURCE Sinclair Broadcast Group, Inc.