Tonight at midnight, as the ball is dropping in Times Square and in Carytown above the Byrd theatre, my local NBC affiliate will turn off its signal to Direct TV. Why is this and is this right?
Raycom’s explanation is here. They say that Direct TV charges hundreds of thousands of dollars yearly to people in the Richmond, Virginia area to deliver Raycom’s content. Raycom wants a bigger cut of that revenue and Direct TV wants the status quo. I have not read any statement from Direct TV, but after reading Raycom’s explanation, I side with Direct TV.
Raycom broadcasts their signal for free over the air. Since it is not broadcast in standard definition any more, the only way I can get their signal is either via a HD TV, a HD converter or something like Direct TV. I don’t want to buy new HD TV’s (I have 1 which is enough for now) and I think buying the converters is silly when I already have Direct TV.
So Raycom is charging Direct TV for what they give normal consumers for free. Raycom wants more money from Direct TV and doesn’t care if we get charged more for it. I watch the same commercials on my NBC station, regardless of whether it comes across the air or over Direct TV. Raycom gets more revenue by me watching it via Direct TV than if I watch it over the air via HD TV. So why are they wanting even MORE money from Direct TV?
I think Raycom is just being greedy and blind.

Perhaps advertisers or consumers don’t agree on the quality of the programming so they are getting less for commercials and advertising. I don’t know. But if you need to make up revenue, don’t take the people who are paying you and charge more when you are giving it to a large audience for free anyway.
Raycom, please get a clue and back off of Direct TV. I will not switch to Comcast (shudder), and you won’t stream all of your content to me (I wish!!) over the web. Raycom, you and only you will be responsible if Direct TV chooses not to air your content any longer and you’ll get less revenue because of it. Your market share will decline and you’ll also be out the money Direct TV was paying you. Keep the status quo. Do the right thing by your viewers. Richmond NBC 12 gets more airtime in my house than any other local station, and I assume you want to keep it that way.
If my screen goes black, you’ve lost. I’ll watch Chuck via Hulu and get my news from another local station like WTVR 6. Who knows, I might even decide I like it better too.
P.S. If you are on Twitter, find my tweet at http://twitter.com/#!/DonaldFoss and retweet it!
Update #1: According to http://blog.al.com/breaking/2010/12/directv_says_it_has_no_plans_t.html, Raycom didn’t provide termination notice to Direct TV in the timeframe specified by the contract, so the Raycom – DirectTV agreement was automatically extended to 31 December 2011. This is apparently why Direct TV isn’t interested in talking more. If Raycom turns off the signal, Direct TV can sue them and probably get damages too.
Update #2: No ruling yet, but according to http://www.semissourian.com/blogs/mmiller/entry/39072/, it is about more than just money (yeah, right). It’s also that “Stations are also vying for channel position, carriage of additional sister stations, etc.” Personally I don’t buy it. It’s primarily about the money.
Update #3: Well, sorta an update. Sinclair and Time Warner cable were in the same situation and they called a time-out. They moved the deadline to January 14. I think that was a smart thing to do. See http://money.cnn.com/2010/12/31/news/companies/sinclair_time_warner_cable_dispute/
Update #4: Went to watch the Today show on Direct TV this morning and it was there with no problem. However when they went to the local news segment, it just showed the public service weather thing you would see on 12.2 over the air. So it looks like the only thing that Raycom is denying is the local news and weather? I’m even seeing local commercials! There are 2 other local TV stations in town to watch, and who knows, maybe I’ll like them better now that I’m forced to watch them. Raycom says “Raycom has agreed in writing to substantially all the terms mutually negotiated to keep this station on DirecTV’s service. Raycom has sent DirecTV a signed agreement for DirecTV to execute. We are awaiting DirecTV’s signature on the agreement.” Since we don’t know what all the terms are, we don’t know what “substantially all of the terms” really means. It could be everything but the extra money Raycom wants in their pocket.