Some cable customers could lose AMC Networks in new year

Customers of several small- and medium-sized community cable television companies might not be able to tune into “The Walking Dead” on AMC in the new year if a contract dispute isn’t settled this week.

AMC Networks recently announced new contract renewal terms that the National Cable Television Cooperative — which negotiates contracts for 900 cable operators in the U.S., including Hilton Head Island-based Hargray Communications and Rock Hill-based Comporium — has rejected. If a new deal isn’t struck by Dec. 31, cable TV subscribers with those companies could lose AMC, WE tv and IFC.

Comporium serves parts of Lexington County.

“They are very unreasonable rate increases,” said Gerrit Albert, vice president of sales and marketing at Hargray. “It represents a 100 percent increase over program expenses today.”

Albert declined to disclose terms, including the specific amount AMC Networks sought, of the programmer’s contract renewal.

Part of the dispute, he said, is the lengthy contract the company is requiring in addition to mandating network bundling — which includes less popular channels such as BBC World News — instead of allowing customers to choose which networks they want to pay for.

“I have to carry AMC Networks for all customers,” Albert said. “I can’t provide a la carte networks, allowing customers to choose which ones they want.”

Hargray recently surveyed customers about whether they would be willing to pay more to receive AMC Networks. Albert said 85 percent indicated they were not willing to pay more.

“We’d like to go to the 15 percent who do want it and say, ‘Here, you can have it,’ ” while the others can opt out of paying for and receiving it, Albert said.

AMC Networks isn’t the first programmer with which NCTC cable companies have had contract disputes. In March 2014, Viacom, which owns networks that include MTV, VH1, Comedy Central and BET, sought an increase 40 times the rate of inflation, which Albert said at the time Hargray couldn’t accept.

Albert said Tuesday there was a short blackout, but an extended deadline allowed a deal to be negotiated with Viacom.

“It’s a very similar script,” Albert said. “We have to hold our ground.”

Albert said the American Cable Association and NCTC have petitioned the Federal Communications Commission to change the way large programmers such as Viacom and AMC Networks negotiate terms with small to medium cable operators.

“We need action from the FCC that protects us from outrageous increases,” Albert said.

The forced bundling is a particular issue, he said, as it allows programmers to charge cable providers more money for all of its networks, which then leads to higher cable bills for customers, who might not want all networks included.

Scott Pryzwansky — a spokesman for Time Warner Cable — said there has been no contract renewal dispute between it and AMC Networks.

This story was originally published December 29, 2015 at 5:19 PM.