DirecTV reaches deal to distribute right wing network Newsmax after long dispute

Key Points
  • DirecTV said it reached a deal with Newsmax to once again carry the right wing cable TV channel.
  • The satellite TV provider and Newsmax had been in a months-long dispute.
  • DirecTV said it stemmed from financial differences between the two.
DirecTV satellite dish
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DirecTV said Wednesday it reached a deal with Newsmax Media to once again carry the right wing network in its satellite-TV and streaming packages.

DirecTV had not carried Newsmax on its services since late January, when carriage negotiations broke down between the two companies. Newsmax had earlier alleged at the core of the dispute was "political discrimination," with some politicians getting involved along the way, while DirecTV said it came down to economic differences.

Newsmax will return to DirecTV's packages at no additional cost. Financial terms of the deal weren't disclosed.

The TV network, run by CEO Christopher Ruddy, had been pushing to receive fees. Initially, DirecTV carried the network without paying fees and Newsmax relied on advertising revenue, which is typically the case for new TV channels.

"Newsmax recognizes and appreciates that DirecTV clearly supports diverse voices, including conservative ones," Ruddy said in a statement, adding DirecTV helped give Newsmax its start nearly a decade ago.

Throughout the public dispute, DirecTV said such blackouts were a common occurrence in the pay-TV industry, and consumers were often "caught in the middle."

"This resolution with Newsmax, resolving an all-too-common carriage dispute, underscores our dedication to delivering a wide array of programming and perspectives to our customers," Bill Morrow, CEO of DirecTV, said in a statement.

Pay-TV providers like DirecTV have been bleeding customers in recent years due to the rise of streaming services. While negotiations between pay-TV distributors and TV channels have long been tense, such discussions have become increasingly fraught. Higher fees to TV networks often mean pay-TV package prices increase, accelerating the exodus of customers.