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DirectTV to Pull The Plug on Viacom (Updated 7-11-12)

(Update – As of this morning Nickelodeon, MTV, VH1, Comedy Central and other cable channels owned by Viacom were taken off of DirecTV’s lineup early Wednesday morning, beginning a channel blackout that has angered viewers across the United States. In total 20 million homes lost access to Viacom’s channels)

DirectTV® subscribers might wake up tomorrow saying “I want my MTV”. DirectTV® and Viacom have been in negotiations and those negotiations came to a halt last night. DirectTV® claims they have made their final offer to Viacom and will be removing Viacom’s 22 channels (MTV, Spike TV, VH1, Comedy Central and Nickelodeon to name a few) at midnight tonight.

At the heart of negotiations is Viacom’s request for a 30% rate increase that would amount to over $1 billion dollars. Because of Viacom’s size they can bundle all of their channels into the negotiations. DirectTV® said, “You should be able to decide which Viacom channels you want and which you don’t.”

Viacom claims that DirectTV® subscribers have made Viacom the most watched programmer and accounted for 20% of all of its viewing. They also claim that they are only paid for 5% of the viewing and the increase is justified.

Wall Street has been talking about Viacom’s value being in decline. Cable and Satellite providers are under attack from streaming videos and Netflix. The ratings decline for networks like MTV and Nickelodeon it is creating a perfect storm for distributors to drop Viacom from its line up. A few years ago this would be unthinkable just based on Nickelodeon. UBS analyst John Janedis recently downgraded his rating on Viacom’s due to concerns related to ongoing ratings weakness. He wrote in his report: “We continue to think the concerns related to Netflix/Amazon viewing are overblown in the near-term, but from a content perspective, our sense is that returning series at MTV are under-performing, which will translate to further make-goods and a drag on ad growth in fiscal year 2013”.

Why is this important to MMA fans? The loss of DirectTV® hurts the expansion plans of Bellator, who is in partnership with Viacom. Partnership really mis-states the relationship. Viacom owns a large chunk of Bellator. Bellator can’t jump ship the way the UFC left Spike, they’re stuck until sold off. Bellator goes where Viacom goes.

Many thought the Viacom deal would allow Bellator to become the second largest American Mixed Martial Arts promotion. Suddenly Viacom itself is in danger of The Judgement by the market. With One FC’s ten year deal with ESPN STAR for Asian distribution and the DirectTV® Viacom deal hanging by a thread we may see One FC take the number two spot in the sport. Thinking that an Asian distribution deal doesn’t threaten Bellator’s North American position would be a mistake. The missing facts are: Victor Cui, CEO and owner of One FC, was at one time a senior director for ESPN STAR, and ESPN STAR is a 50-50 joint project between ESPN and Rupert Murdoch’s News Corp – the single largest media presence in North America, which includes, yes, FOX.


Jon Jones vs The Canadian Immigration

 

If you missed it UFC Light Heavyweight Jon “Bones” Jones plead guilty to  Driving While Intoxicated (DWI) today.  For those of you that have never traveled to Canada you might not realize that a DWI is considered a “serious” offense.  I praise Mr. Jones for taking responsibility and handling this matter as expeditiously as possible.

The effect of this conviction go beyond the sentence that will be handed down by the judge.  As an example, if you are traveling to Canada, before you are allowed to enter the Country you will be asked  “Have you ever been convicted of a crime?”  When your answer is “yes”, you will likely be turned away.  If you have been convicted  of a DUI or DWI within the last ten years you will not be allowed entrance.  According to the Canadian Criminal Code driving while impaired is a serious crime.  The attitude is supported by most Canadian citizens.

The common person with a conviction may be considered rehabilitated “after” a certain period has expired from the completion of the sentence imposed.  You must apply for rehabilitative status and demonstrate your rehabilitation.  The usual post conviction waiting period is five years.  After this five-year waiting period the person must submit the following documents:

  1. An application form IMM 1444E
  2. A passport size photograph
  3. A copy of your passport data pages
  4. An FBI police certificate
  5. A state police certificate
  6. Copies of court documents indicating the charge, section of law violated, the verdict, and sentencing
  7. Proof of completed sentences, paid fines, court costs, ordered treatments, etc.
  8. Copies of the text of the law describing the offence.
  9. Detailed explanation of the circumstances surrounding the offence
  10. Three letters of reference from responsible citizens.
  11. A non-refundable processing fee of $180 USD

Further information can be found at Citizenship and Immigration Canada’s webpages, Overcoming Criminal Inadmissibility and Overcoming Criminal Inadmissibility – Frequently Asked Questions.

It might be possible to get a temporary resident permit to enter Canada prior to rehabilitation, but this is up to the passport control officer’s discretion and requires a $200 (Canadian) fee.  The temporary resident permit is meant to allow entry for exceptional circumstances, which would include reasons of national interest or on strong humanitarian or compassionate grounds, which a UFC event is not.

It remains to be seen how the Jones conviction will effect the UFC plans.

Jason Genet