Pappas Telecasting’s standoff with DirecTV

As of April 1st two of my local broadcast channels, owned by Pappas Telecasting, ceased to be carried by DirecTV.  Statements on the website of my local station try to convince DirecTV customers to switch providers in an obvious attempt to pressure the satellite provider.  Based on the comments posted to that broadcaster’s site I’d say that the attempt is backfiring.  Speaking only for myself, I am a long time DirecTV customer and have NO intention of switching providers.  I have spent quite a while this evening switching my DVR to an alternate ABC affiliate to record my favorite ABC shows.  When / if this standoff concludes, I have no intention of switching back.  My local Pappas station (KHGI otherwise known as NTV) has lost me as a viewer…

The following is a statement from Dan Hartman, DIRECTV senior vice president of Programming

After repeatedly ignoring our requests to not disrupt our customers’ programming, Pappas Telecasting demanded the removal of its five local broadcast stations in four markets to force us to accept a deal that would more than double Pappas’ annual licensing fees. Pappas also demanded they be paid at least a year’s worth of those fees in advance.

We have no problem compensating Pappas fairly, but we’re a video distributor, not an ATM. Pappas’ demand for fees that are well over twice what they are currently receiving threatens our customers with further increases in their monthly programming bills. That is unacceptable. And Pappas’ condition that it will provide access to local news and other programs of interest only if they receive their money upfront is deplorable. It’s arrogant and a complete affront to the public trust.

Loyal customers must never be placed into the middle of what should be a private business matter, and thankfully in this case, some of our customers are already eligible to receive a replacement station.

While we regret Pappas’ actions, we appreciate DIRECTV customers’ patience as we work toward a resolution so we can continue to provide them with the best video experience at the most reasonable cost.

more information can be found here

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2 thoughts on “Pappas Telecasting’s standoff with DirecTV

  1. I totally understand your frustration and your concerns very perfectly.

    NTV and KFXL FOX Nebraska owner Harry Pappas and his Pappas Telecasting as well as NTV’s general manager Vincent (Vince) Barresi are being so dysfunctional in all of their unwillingness to put those stations back on to the viewers with Directv. I feel that the entire Pappas organization is very dysfunctional both before and after filling for bankruptcy in May of 2008 along with a total of 5 stations going off the air completely (one with KCWK part of bankruptcy, the others not part of the Pappas bankruptcy with KSNB under Collins, KTVG under Hill, and WWAZ and WLGA fully owned by Pappas). I’m still feeling that there is a very real possibly that NTV viewers would end up dealing with the fact that NTV would end up going off the air and going out of business completely all because the entire Pappas organization is so fully dysfunctional as a broadcaster now and evenly into the future.

    Harry Pappas and his Pappas Telecasting are way too cheap el cheapo to improve the overall quality of all of the stations they still own that was not affected from the May 2008 bankruptcy filling.

    I truly know it’s shame on both Harry Pappas and his Pappas Telecasting Companies for this blackout that result in the viewers from being able to watch their favorite shows. I feel that Harry Pappas and his Pappas Telecasting Companies are trying to be like the Neil Bogarts of Casablanca Records fame of the 1970’s, the Bernard Madoff’s, the Enron’s, and the Worldcom’s of the 2000’s by letting broadcast greed get out of control so all of the head employees and bosses at Pappas Telecasting Companies be able to have luxurious homes, luxurious cars, join luxurious clubs, and have other luxurious items just to make them very happy then trying and willingness to improve the quality of all the stations they owned and control and making the viewers happy as well. I feel that Harry Pappas and his Pappas Telecasting Companies has not learned enough from it’s bankruptcy in 2008 without NTV being affected in the bankruptcy. I hope and I wish that Harry Pappas and his Pappas Telecasting Companies get scolded by both by the ACA and the FCC for making the viewers being forced to deal with this blackout because they could not make a deal to get the stations back to it’s customers sooner and with a fair deal. I hope and I wish that Harry Pappas and his Pappas Telecasting Companies goes out of the broadcast business in owning TV stations. I feel that Harry Pappas and his Pappas Telecasting Companies are trying to bribe like the General Tire/RKO General of the 1960’s and 1970’s by not being very honest of not only the viewers by making them miss the shows on Directv. I hope and I wish that the FCC would force Harry Pappas and his Pappas Telecasting Companies to allow Directv to carry it’s stations without any interference, in the event Harry Pappas and his Pappas Telecasting Companies fails to allow Directv to carry it’s stations, then the FCC would force Harry Pappas and his Pappas Telecasting Companies to give up control of all the stations they owned,in the event Harry Pappas and his Pappas Telecasting Companies fails to give up control of all the stations they owned, then the FCC would allow all the broadcasters be allowed to purchased any of the stations Harry Pappas and his Pappas Telecasting Companies owns and control with the broadcasters being required to make a real big concession that they would promised not to have any difficulties with all the cable and satellite operators when making deals to carry stations without any interference for 12 whole years with me wanting Sinclair owning KDMI to tie it with KDSM, Hearst owning KCWI to tie it with KCCI, and Journal buying KAZO to tie it with KMTV Action 3 News, NTV with KFXL FOX Nebraska being included and KSWT to meet FCC rules and regulators. I feel that both Harry Pappas and his Pappas Telecasting Companies are way too busy being the Rebecca Black Friday as well as trying be act like the Jeffrey Ireland’s and the Patrick Jones’s as the drunks, the Rodney Dangerfield’s, the John Belushi’s, and the Chris Farley’s as the comedians and the Homer and Bart Simpson’s, the Peter Griffin’s, the Garfield cats, the Cookie Monster’s, the Miss Piggy’s, and the Victor Newman’s of the broadcasting industry of not coming to reach a deal with Directv to carry it’s stations to the viewers with Directv. I feel that both Harry Pappas and his Pappas Telecasting Companies are trying to turn into the 1919 Chicago White Sox’s baseball team and the SMU football of the 1980’s to force Directv to accept a take it or leave it deal to carry it’s stations. I urge all of the viewers with Directv to boycott Harry Pappas and his Pappas Telecasting Companies right now for making the Directv viewers from being able to watch their favorite shows.

    I feel it is related because of its bankruptcy process.

    The quote is from the article about the Directv and Tribune dispute:

    “We’re extremely perplexed as Tribune management and DirecTV had a handshake deal on Thursday with an agreed-upon rate for their channels,” DirecTV said. “We can’t help but wonder whether Tribune’s ability to negotiate a reasonable retransmission agreement with DirecTV is being undermined by the complexities and competing interests in their lengthy bankruptcy process.”

    Alluding to Tribune’s bankruptcy proceedings, DirecTV said, “Threatening station blackouts to extract an exorbitant fee for all of Tribune’s content may provide an improved return for certain banks and hedge funds, but is not in the interest of its viewers and is not a cure for bankruptcy.”

    These quotes are from the Directv website about the dispute with Tribune:

    DIRECTV Responds to Tribune Statement

    EL SEGUNDO, Calif.–(BUSINESS WIRE)– We’re extremely perplexed as Tribune management and DIRECTV had a handshake deal on Thursday with an agreed upon rate for their channels. Their actions are the true definition of “bad faith” in every sense of the term.

    We can’t help but wonder whether Tribune’s ability to negotiate a reasonable retransmission agreement with DIRECTV is being undermined by the complexities and competing interests in their lengthy bankruptcy process. Despite our best efforts to compensate Tribune fairly for both WGN America and the local stations, it seems they are focused on unduly benefitting their creditors rather than viewers. Threatening station blackouts to extract an exorbitant fee for all of Tribune’s content may provide an improved return for certain banks and hedge funds, but is not in the interest of its viewers and is not a cure for bankruptcy.

    If the local stations and WGN America do come down at midnight, it will be 100% Tribune’s decision to take them away from customers. To come so close and then renege on terms that affect millions of customers defies Tribune’s long history of protecting the public interest. However, we hope Tribune does the right thing and honors their word, keeps the channels on and puts customers before creditors.

    It is also what I feared and I suspect Harry Pappas and his Pappas Telecasting are also doing this as well.

    The following links are about Pappas liquidation of it’s assets:

    http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0330/DOC-313293A2.txt

    http://www.radio-info.com/newsletter/html/tri-03292012.html?lightbox=true%3Fiframe%3Dtrue&width=850&height=600

    http://www.radio-info.com/news/pappas-telecasting-liquidates-broadcast-assets-including-kmph-am-modesto

    http://www.allaccess.com/net-news/archive/story/104128/a-buck-buys-an-fm-permit-in-alaska

    http://houstondtv.wordpress.com/2011/12/27/kvvv-heads-to-liquidation-trust/

    Facebook pages connected to the Pappas broadcasting family can be found at:

    Pappas Telecasting:

    http://www.facebook.com/pappas.telecasting

    Harry Pappas:

    http://www.facebook.com/profile.php?id=100001597768134

    Stella Pappas:

    http://www.facebook.com/profile.php?id=1277745328

    Wish I could comment more about the dispute, but it’s all I would want to comment right now.

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