Customers of U-Verse and DirecTV will be able to receive 10TV signals without having to install an antenna. This came after telecommunications giant AT&T and the owner of the CBS affiliate, Dispatch Broadcast Group, ended a stalemate over the details of a new contract that had lasted a month. Resumption of the cable and satellite services took place immediately.
“10TV is back on your system! After reaching a fair agreement with DirecTV and AT&T U-verse, all of your favorite programs have returned to your channel lineup,” said WBNS in a statement.
National Football League
The deal terms were however not immediately disclosed. The blackout begun just as the current season of the NFL was kicking off. With CBS responsible for airing AFC games, local fans of teams such as Pittsburgh Steelers, Cincinnati Bengals and Cleveland Browns were unable to watch matches involving their favorite teams on television without an antenna.
According to the general manager of WBNS, John Cadenas, the dispute’s timing was dictated by the contract and was not timed to coincide with the beginning of the football season. Cadenas added that extensions were offered in some situations in the hope that a fair resolution would be reached.
The end of the stalemate between AT&T and Dispatch Broadcast Group follows an announcement by the telecommunications giant disclosed that the number of people who subscribe to its video services in the United States had fallen by approximately 90,000 customers in the last quarter. According to AT&T, the decline was as a result of increased competition in the traditional pay television market, the hurricanes that battered parts of the United States, stricter credit standards and the increasing popularity of over-the-top services.
But while AT&T lost video subscribers, its over-the-top-service, DirecTV, added about 300,000 new subscribers. Services like DirecTV which bypass traditional satellite and cable distributors as they deliver content on the internet are expected to continue with their growth momentum as they are cheaper and more convenient further hurting traditional video subscription sales. According to a UBS analyst, John Hodulik, the third quarter will likely see the sector lose approximately one million traditional video subscribers.
AT&T attributed the loss of traditional video subscribers to natural disasters in both Mexico and the United States which destroyed its network and other infrastructure. In Q3 AT&T expects the earthquakes in Mexico and the hurricanes in the United States to lead to a decline revenues by amounts totaling approximately $90 million.