Starz, AT&T avert network outage with new distribution pact
AT&T and premium network Starz hammered out a new distribution deal late Friday, ensuring that millions of viewers will be able to watch such shows as “Power,” which stars Curtis “50 Cent” Jackson, shown here performing at the “Power” Season 2 launch party in New York.
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Premium pay-TV service Starz and AT&T hammered out a new distribution pact hours before a deadline, ensuring that millions of AT&T customers would be able to watch such popular Starz programming as the drama “Power.”
Talks had dragged on for several months before stalling a week ago. With the deadline looming, the two companies returned to the negotiation table and forged an agreement late Friday shortly before their contract was due to expire.
“AT&T and Starz have reached an agreement to continue our longstanding relationship,” an AT&T representative said Saturday afternoon.
The companies declined to provide financial terms of their new deal.
Friday was busy for AT&T. The Federal Communications Commission approved its $49-billion takeover of DirecTV, and AT&T finalized the merger on Friday afternoon. AT&T now is the nation’s largest pay-TV provider with 26 million subscribers, including 1.5 million in the Los Angeles region.
AT&T’s U-verse has included the Starz network for nearly a decade.
Starz, which is a publicly traded company, relies heavily on subscription fee revenue from pay-TV distributors, such as Time Warner Cable, DirecTV and AT&T.
It is the second-largest premium-pay service in the U.S. with 24 million subscribers nationwide. Starz’s companion Encore channels have more than 33 million subscribers.
The company has had a particularly strong showing with its original series.
“Power” on Starz is in its second season, drawing more than 6 million viewers per episode. The program performs particularly well among African American viewers.
The show is co-executive produced by rapper Curtis “50 Cent” Jackson, who costars in the series. “Power” was created by Courtney Kemp Agboh.
“Outlander” is another hit, particularly among women. It often ranks in the top 10 cable programs with an audience of nearly 5 million viewers an episode.
Twitter: @MegJamesLAT
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