Versus Network is one of the most popular Sports Network in U.S. It is owned by Comcast cable television service. It delivers various sports programs such as NHL, IndyCar Series, College Football, Davis Cup Tennis, PBR, Americas Cup, WEC, World Combat League, Fight Night, USSA, Tour de France, SlamBall and UFL (United Football League) to subscribers. Especially NHL games are enjoyed by subscribers greatly.
DirecTV Satellite service had a contract with Comcast in order to deliver programs of Versus Network to DirecTV’s subscribers. The contract between them had expired on Aug 31, 2009.
During the contract period of DirecTV and Comcast, DirecTV paid a license fee to Comcast for delivering programs of Versus Network to their subscribers. DirecTV did not renew the contract with Comcast, because Comcast claimed for an increase in the license fee but DirecTV did not accept the claim. Due to this contract dispute, DirecTV stopped airing Versus Network from Sep 1, 2009 onwards. The reason for this contract dispute is explained below elaborately, from both DirecTV’s and Comcast’s point of views:
DirecTV’s point of view over contract dispute
As far as DirecTV’s point of view regarding the dispute is concerned, they explained that Comcast was asking for 20 percent increase in the license fee.
DirecTV also added that if they had accepted the Comcast’s claim of 20 percent increase in the license fee, then they would have needed to charge more fee on subscribers for airing the Versus Network. But DirecTV did not want to dissatisfy their valuable subscribers by charging more fee. So, they did not accept the claim of Comcast.
Comcast’s point of view over contract dispute
While considering this dispute from Comcast’s point of view, they completely denied DirecTV’s explanations over this dispute. They said that they had levied the same license fee not only to DirecTV but also for other television networks such as Satellite TV providers and Cable TV providers.
Comcast also added that programs of their Versus Network was watched by 6 million DirecTV’s subscribers. If DirecTV stopped airing programs of Versus Network, then their subscribers would ask DirecTV to air Versus Network again. If DirecTV would agree to continue airing Versus Network again to their subscribers by increasing the fee than earlier. Thus the contract dispute is going on between DirecTV and Comcast.
Comcast’s contract with DirecTV had stopped to air programs of Versus Network due to the contract dispute, recently Comcast combined with Dish Network satellite TV service. As a result, Dish Network is delivering programs of Versus Network to their subscribers.
Dish Network is now giving an offer of delivering programs of Versus Network to their subscribers for free of cost for three months. Dish Network is providing this offer to both their new as well as existing subscribers. Subscribers can watch programs of Versus Network in both standard-definition format and high-definition format. Thus Dish Network’s subscribers are enjoying programs of Versus Network.
If we consider DirecTV’s subscribers, they are very much disappointed about missing Versus Network. According to the survey, out of 18 million DirecTV’s subscribers, 6 million DirecTV’s subscribers had watched Versus Network and were greatly satisfied. Especially, Versus Network is delivering the popular NHL games now (from oct 1,2009). Taking this into consideration, DirecTV and Comcast must overcome their disputes and sign a new contract again.