AT&T & Hallmark Carriage Dispute Intensifies

NEW YORK: Hallmark Channels has responded to AT&T U-verse’s stance on the current carriage spat, asserting that cable provider is "bullying one of the nation’s last surviving independent cable networks by insisting on unreasonable rates."

The dispute threatens Hallmark Channel and Hallmark Movie Channel’s carriage in the AT&T U-verse TV’s lineup. The channels will be dropped if a new agreement is not reached by August 31. AT&T had issued a statement that it was "making every effort to reach a fair agreement and continue providing these channels to our customers. Frankly, we’re surprised that Hallmark has decided to take its negotiations public, instead of working with us in good faith, especially since we’ve made numerous offers to Hallmark. We’re disappointed that Hallmark is acting in a way that may punish viewers and is trying to charge AT&T more than what similarly-sized and smaller TV competitors pay for these channels. We want to continue to carry the channels under terms similar to our current agreement."

Bill Abbott, the president and CEO at Hallmark Channels, responded to AT&T’s statement today by saying: “It is unfortunate that AT&T U-verse’s statement of the situation is inaccurate. They are a multi-billion dollar organization bullying one of the nation’s last surviving independent cable networks by insisting on unreasonable rates that would seriously jeopardize our longevity. Hallmark Channel and Hallmark Movie Channel are two of the few remaining family-friendly networks offered on television and represent less than 1 percent of AT&T’s total basic programming fees! Although we would have preferred to conduct the negotiations privately, we have been forced to comment since AT&T advised its customers weeks ago that Hallmark Channels may be dropped on August 31, 2010.”