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AMC Networks has lodged a complaint against AT&T with the Federal Communications Commission.
“The Walking Dead” network claims it has been put in a competitive error compared to the networks AT&T acquired through its merger with Time Warner, including TBS, TNT and HBO. In a 176-page complaint filed Wednesday, AMC said AT&T has “disproportionate bargaining power” that could unreasonably harm unprogrammed competitors.
T-MOBILE, AT&T ENTER WORK OF WORDS ABOUT WHO IS AMERICA # 2 WIRELESS PROVIDER
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| AMCX | AMC NETWORKS INC | 23.59 | +0.04 | + 0.19% |
| T | AT&T INC. | 30.02 | +0.18 | + 0.60% |
FOX Business reached out to AMC Networks for comment, but company representatives did not immediately respond at the time of publication.
However, the complaint from AMC shows that the network has problems with AT&T “increasing what its own networks pay” in terms of licensing over annual service delivery.
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As an example, the network cited AT & T’s investment in HBO programming as a major cause for concern.
“AT&T has recently made it extremely clear that, far from reducing the budgets of its networks, it is substantially increasing them so that they can fully compete in the ongoing war for content,” reads the redacted complaint, which reports of Variety cited. “AT&T spent a whopping $ 14.2 billion on original content in 2019 alone, and HBO ‘expanded its original content production by 50%, up to 150 hours,’ to the tune of ‘about $ 1.5 billion.'”
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A year earlier, HBO had spent around $ 2.2 billion on content, the complaint added.
Less paid than AT & T’s networks in licensing fees, AMC has concluded that AT & T’s business moves are motivated by discrimination, with AMC characterizing itself as a “must-have network.”
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AMC’s relationship agreement with AT&T and DirectTV is set to expire on August 31, according to a Preliminary Notice of Damage to Program Transmission submitted on July 22. AT & T’s fees for fees and other requirements it uses in negotiations such as restrictions on where AMC distributes its content.
“By … stopping AMC from distributing its networks either directly to consumers or by making them widely available through online video platforms, AT&T is interfering with AMC’s ability to generate revenue and remain relevant to today’s consumers, “states the document. “Given that AT&T does not impose these restrictions on its own networks, such conduct is a flagrant attempt to give AT & T’s own networks a full advantage over AMC’s networks.”
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AT&T, on the other hand, denies that it treated AMC unfairly. In a statement issued to FOX Business, the media giant said its business decisions regarding AMC were largely due to a shifting consumer base.
“AMC Networks’ complaint is unfounded. We treat all programmers fairly and will continue to work with AMC Networks to deliver their content at a price that is reasonable for our customers, “wrote an AT&T spokesman. But, the cost of providing that programming should reflect that AMC Networks’ shows have had in several years dropped in popularity compared to their peers. AMC’s plea to the FCC does not recognize that our television services represent only 15 percent of U.S. television households, and in almost every market across the country, consumers have two or more competing options representing the portfolio of channels. AMC Network. “
