DirecTV Reaches Newsmax Distribution Deal After Dispute

DirecTV said Wednesday it has reached an agreement with Newsmax Media to include the right network back into its satellite TV and streaming packages.

DirecTV has not used Newsmax on its service since the end of January, when talks between the two companies broke down over transportation. Newsmax had previously assumed the dispute was based on “political discrimination” with some politicians getting involved along the way, while DirecTV stated that it all came down to economic differences.

Newsmax will return to DirecTV packages at no additional cost. Financial terms of the deal were not disclosed.

The television network, run by CEO Christopher Ruddy, insisted on receiving royalties. Initially, DirecTV served the network for free, while Newsmax relied on advertising revenue, which is usually the case for new TV channels.

“Newsmax recognizes and appreciates that DirecTV is clearly supporting a variety of voices, including conservative ones,” Ruddy said in a statement, adding that DirecTV helped Newsmax start almost a decade ago.

Throughout the public controversy, DirecTV stated that such outages were common in the pay-TV industry and consumers were often “stuck in the middle”.

“This decision with Newsmax to resolve an all-too-common transportation dispute highlights our commitment to delivering a broad range of programming and perspectives to our customers,” Bill Morrow, CEO of DirecTV, said in a statement.

Pay TV providers such as DirecTV have been losing customers in recent years due to the growth in streaming. While negotiations between pay TV distributors and TV channels have been tense for a long time, such discussions are becoming increasingly tense. Higher rates for TV networks often mean higher prices for pay TV packages, which accelerates customer churn.