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AT&T accuses AMC Networks of seeking excessive rate increase

Indiantelevision.com Team

(29 June 2012 7:26 pm)

MUMBAI: The AT&T U-verse TV contract with AMC Networks for channels, including AMC, IFC and WE tv, in the US expires on 30 June.

AT&T issued a statement saying that AMC Networks is looking for an excessive rate increase.

"We are making every effort to reach a fair agreement and continue providing these channels to our customers. Frankly, we're disappointed AMC Networks has decided to take its negotiations public, instead of working with us in good faith, especially since we're still actively in negotiations," At&T said.

AT&T has been in ongoing negotiations to renew this agreement, but AMC Networks is seeking an excessive rate increase in its overall fees for the right to deliver these channels. AMC Networks is asking that AT&T pay nearly double what AT&T believes other competitors are paying — including a smaller-sized competitor.

"We believe the rates they are seeking are disproportionate compared to the viewership we see across their channels," AT&T said.

AT&T adds that it does not think that's reasonable, especially in these economic times, and the aim is to continue to work toward a fair deal.

The company says that there is an ongoing industry trend in which an increasing number of content providers seek unreasonable price increases from their service providers as those contracts expire.

"If we accept this cost increase from AMC Networks, it could result in higher prices for customers, and would only encourage other content providers to make similar demands. We don't want customers to lose these channels, but we need to take a stand now to keep costs down while continuing to provide the quality programming customers want and deserve," the company said.