Tuesday, November 9, 2010

HGTV, Food Network Back on AT&T U-Verse

AT&T Inc. and Scripps Networks Interactive have reached an agreement to bring back several cable channels, including HGTV and Food Network, that had temporarily gone dark on U-Verse due to a contract dispute.

The cable channels, which also include DIY and the Cooke Channel, went dark on U-Verse for the same reason other channels have gone dark on other distribution platforms: disagreements about the programming fees distributors pay to carry the networks.

News Corp.'s Fox Networks and Cablevision Corp. recently came to an agreement to end a high-profile blackout of several Fox channels, including the national network.

All of those spats provide evidence of growing stresses in the multichannel video business between distributors and programming owners, each attempting to maximize revenue and profit at a time when price resistance by consumers appears to be growing.

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