Tribune And Spectrum Fail To Reach New Carriage Deal

(RTTNews) - Tribune Media Co. (TRCO) has pulled its television stations from Spectrum, the cable operator owned by Charter Communications Inc. (CHTR) after the two companies failed to reach a new carriage agreement.

The contract between Tribune Broadcasting and Spectrum expired at 5 p.m. ET on January 2. The two companies had earlier agreed to extend their deadline for the carriage contract to Wednesday, averting a New Year's Day blackout.

In a statement on Wednesday, Tribune said that Tribune Broadcasting television stations in 24 markets across the U.S. are no longer available to Spectrum subscribers via the company's cable systems.

About six million Spectrum subscribers have lost access to the local news, traffic, weather, sports and entertainment programming provided by Tribune's 33 television stations via Spectrum.

"In addition to local news, such programming as the National Football League playoffs and NCAA basketball will be lost," Tribune noted.

More than 14 million subscribers across the U.S. have also lost access to WGN America, Tribune's basic cable entertainment network and the home of shows such as "Pure", and syndicated programming such as "Blue Bloods" and "Elementary."

According to Tribune, it has offered Spectrum fair market rates for its local news, live sports and entertainment programming, and similarly fair rates for its cable network, WGN America. Spectrum has refused its offer and failed to negotiate in a meaningful fashion, Tribune said.

Meanwhile, Spectrum said in a statement that Tribune was demanding a "ridiculous increase", asking the company to pay more than double its current rate to carry the same programs.

Spectrum also accused Tribune of seeking excessive fees for its broadcast station as well as forcing consumers to pay for networks like WGN, "which very few people watch."

According to Spectrum, Tribune was perhaps acting this way as it has entered into an agreement to be acquired and was trying to make lucrative packages for their executives after the transaction.

Nexstar Media Group Inc. (NXST) had said in early December 2018 that it agreed to acquire Tribune Media in a cash transaction for $6.4 billion, including debt.