Eagle Communications, an employee-owned television provider based in Hays, Kansas, has announced it may be forced to drop a collection of television channels owned by AMC Networks on January 1, 2016. Eagle execs cite the possibility of channel drops are due to AMC’s unreasonable terms and rate increases of more than 350% during the duration of the proposed contract set to take effect in 2016.
“As a local provider, Eagle prides itself on giving our customers the best possible service and value and we want to keep our customers’ costs low,” Gary Shorman, Eagle Communications CEO, said. “We will not be bullied by big networks forcing unreasonable demands on our customers. Eagle is actively working toward an agreement, with our partners at the National Cable Television Cooperative to ensure quality and value in programming. AMC’s tactics translates to unprecedented rate increases of over 350% for the term of the agreement — that just doesn’t make sense for our customers.”
AMC Networks is demanding a 10-year contract, as opposed to the industry standard three-to-five year agreement, and forcing the carriage of additional, lower-rated channels.
“We are aware that AMC has a popular show, “The Walking Dead,” but beyond this, the rest of the programming is unknown and far from popular. Eagle will continue to work with our partners at the NCTC to try to reach an agreement, with modified terms, that will allow us to continue to provide these channels. However, we are aware that Eagle is not the only provider that feels this way – we’re one of hundreds of other cable operators, representing over three million subscribers nationwide that is fighting for reasonable terms for our customers. Those channels will no longer be available in 2016 if nothing changes,” said Shorman.
AMC Networks include AMC, IFC, Sundance, WE, BBC World and BBC America. Eagle Communications currently provides AMC, IFC and WE in their channel lineups, and will continue to do so through the end of the year. If an agreement between Eagle and AMC is not reached before midnight on December 31, 2015 those networks will be dropped from Eagle’s lineups on January 1.
“Nobody likes to see their TV bill go up and we don’t like increasing fees to our customers. Network fees account for the bulk of a customers’ monthly TV bill. We are actively looking for other great channels to bring our customers, that will provide more, and in many cases, better channels for them and their families to watch,” said Travis Kohlrus, Eagle Communications Broadband General Manager. “If the channel is dropped in 2016, it does not mean customers cannot watch their favorite shows. Our teams at Eagle are ready to help our customers find new episodes and seasons, using other technologies and services, which many of our customers already subscribe to, like Amazon, iTunes, Vudu, Google Play and AMC’s own website. These shows are often times available within 24-hours of airing,” Kohlrus added.
Eagle maintains the fact that they continue to work to keep costs low to the end consumer and don’t believe a network with one popular show should hijack a consumer’s budget for that one show.
“In the end, our goal is to protect our customers from unrealistic programing fee increases. In order to provide our customers with programming, we pay a negotiated fee per month, per customer to receive the channels. Eagle will work hard, during every contract negotiation, to get the best value. Eagle refuses to be pushed into a corner with terms and prices that are unreasonable – it has to stop, it will start with AMC. We believe it is our responsibility to our customers to take a stand,” said Shorman.
For the latest on the AMC contract negotiations, please visit TVonmyside.com
The NCTC is a non-profit corporation that represents more than 900 small to mid-size cable television providers across the United States and its territories. It operates as a programming and hardware purchasing organization for its member companies.
Eagle Communications, Inc. is a Kansas-based Broadband Services and Media Company with more than 270 employee-owners. The company operates 28 radio stations in Kansas, Nebraska, and Missouri as well as cable TV systems in 59 Kansas, NebrasKa and Colorado communities. The company also offers e-business solutions, web hosting, telephone service, high-speed Internet, and wireless internet in most service areas. For more information logon to www.eaglecom.net.