No wonder why pay television is so damn expensive. Viacom wants a 30% increase in user fees for their service from DirecTV, both companies stock prices are falling and you can bet as a consumer you’re about to pay more in your local fees for the satellite service.
DirecTV is pissed off at Viacom for what they call “bundling practices” and the fact that Viacom wants a rate increase from what they pay for their service. Viacom calls DirecTV “ancient” and those words are in quotes because that’s exactly what Viacom said about DirecTV.
The hits just keep on coming we used to say in the radio business. Tonight could be the last night Viacom related properties carry content from DirecTV. That 30% increase in user fees amounts to about $3 billion dollars which is a hell of a lot of money so now you can understand why there’s no love lost between Viacom and DirecTV.
So expect bigger fees on your monthly bill.
This is not unusual. This crap about screwing consumers is a regular story for all of us. But instead of us going through the rigamaroll of what this all means just read this story from the Wall Street Journal.