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Contract dispute arises between Tribune and DirecTV

As many Texas residents know, lawsuits arise frequently in business. Sometimes, even companies that have shared a lengthy and successful business relationship can get involved in a heated dispute. Furthermore, if the participants cannot reach an agreement, this may lead to litigation or a broken deal. In recent news, two television companies are involved in a financial contract dispute. If the two businesses do not reach a resolution, this will inevitably affect cable consumers across the country.

According to reports, DirecTV subscribers could lose access to Tribune Broadcasting's television stations because the companies have not reached an agreement on carrier fees. Sources say that Tribune wants a deal similar to that which DirecTV has with other broadcasters. Furthermore, Tribune claims that it has never been paid for the rebroadcast of its television stations.

If the contract falls through, DirecTV subscribers would lose Tribune's local stations and WGN America. The cable change would begin on the last day of this month. Fortunately, DirecTV subscribers would continue to have some options even if DirecTV were to lose the programming.

The president of Tribune Broadcasting claims, "Despite our best efforts, DirecTV is refusing to offer a fair deal and we remain far apart in negotiations."

Hopefully, Tribune and DirecTV will arrive at some type of agreement. Presumably, the companies are working with legal assistance in the hopes of reaching some sort of monetary deal that is acceptable to both parties. Nevertheless, from the looks of it, the companies are not headed toward a resolution, and TV watchers around America will be upset.

Source: Reuters, "Tribune to pull the plug on DirecTV over carrier fees," March 26, 2012

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