Hallmark, AT&T Back In Negotiations

Channel demanding higher sub fees as Sept. 1 deadline looms

By John Eggerton -- Broadcasting & Cable, 8/31/2010 12:39:21 PM

Hallmark and AT&T's U-verse multichannel video service are back at the negotiating table in their carriage impasse, according to a Hallmark source. The sticking point appears to be a simple one: Hallmark wants more than AT&T is willing to pay.

Hallmark, which is regularly ranked among the top cable nets, has been pushing for several years for sub fees it believes better reflect that success than the 4 cents-per-sub it was commanding even as it began regularly cracking the top 10.

There had been a standstill in talks since last Thursday, but they were talking again Tuesday as the deadline loomed.

AT&T's contract expires at 12:01 a.m. Wednesday morning (Sept. 1), though Hallmark has indicated its willingness to allow the signal to continue to be delivered past that deadline if the two sides have not reached an agreement. AT&T would not comment on whether it would agree to keep the channel on as well.

Hallmark has been encouraging viewers to weigh in at AT&T's Facebook page, which they have been doing in apparently large numbers, with each posting getting a response from AT&T.

"Hallmark Channels programs are filled with hope, love, and good values. It is disappointing that you all are considering getting rid of these great qualities just to save cold money," read one post (spelling cleaned up).

"This isn't about us wanting to get rid of the programming you love, it's about Hallmark making unreasonable demands and working out a fair deal with so we can continue providing you the channels you enjoy most," said AT&T in response.

"Wow, I am impressed that AT&T has answered each one of these concerns directly and individually. Hope Hallmark gets the message that they need to be a part of the negotiations too!" said another.

Both sides have apparently gotten the message, but there was no word at press time on the progress of the new talks.