Seeking Alpha

The Weather Channel: When it rains, it pours

  • Executives at The Weather Channel are probably wondering what they did wrong as the network has suddenly become the high-profile test case over carriage fees.
  • DirecTV (DTV +0.1%) wants an unprecedented 20% drop in TWC's per subscriber carriage fee and has invested in a new weather network as a leveraging tool.
  • A quiet hurricane season cut into ratings at the network last year.
  • To make matters even trickier for TWC, AccuWeather says it will launch its own cable network in Q3 of 2014.
  • TWC doesn't have the protection of getting bundled with each networks in a package deal, despite being partially owned by NBCUniversal (CMCSA).
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