Cox Said Near Agreement to Carry Viacom’s Epix Channel in 2010
Bloomberg
By Andy Fixmer and Kelly Riddell
December 11, 2009
(Bloomberg) — Cox Communications Inc., the third- biggest U.S. cable system, is near an agreement with Viacom Inc. to carry Epix, the new movie channel vying for subscribers with HBO and Showtime, said three people with knowledge of the talks.
Cox may begin airing the channel next year, said one of the people, who asked not to be named because the discussions are private. Viacom packaged Epix in a renewal pact for networks including MTV, Nickelodeon and Comedy Central, the people said.
Viacom, Lions Gate Entertainment Corp. and closely held Metro-Goldwyn-Mayer Inc. started Epix after failing to renew agreements to show their movies on CBS Corp.’s Showtime. The owners have more than 15,000 titles, including “James Bond” and “Indiana Jones,” according to the Epix Web site. Verizon Communications Inc. is the only pay-TV service offering Epix.
“Investors have been focusing on the slow progress on distribution for Epix,” James Marsh, a New York-based analyst at Piper Jaffray & Co., wrote in a Dec. 3 note. “Reports that other cable operators are close to adding the service have been circulating.”
Todd Smith, a spokesman for Atlanta-based Cox, declined to comment. Whit Clay, a spokesman for New York-based Epix, had no immediate comment.
Closely held Cox serves 6.2 million customers, according to its Web site. Verizon’s FiOS had 2.7 million TV subscribers through September. Showtime is in 17 million U.S. households.
Epix is also close to an agreement with Englewood, Colorado-based Dish Network Corp., the Hollywood Reporter said on Dec. 3. Dish, a satellite TV provider, said on Dec. 10 that it surpassed 14 million subscribers. New York-based Time Warner Inc. owns HBO.
FiOS Viewers
During its first month, more than 1,000 FiOS subscribers a day signed up for Epix, Marsh wrote. Epix became available on FiOS on Oct. 30. More than a third of the users, who pay $9.99 a month, also watch Epix online, one of the people said.
Viacom, the New York-based media company controlled by Chairman Sumner Redstone, rose 78 cents to $30.84 yesterday in New York Stock Exchange composite trading. The Class B shares have gained 62 percent this year.
Lions Gate, run from Santa Monica, California, rose 8 cents to $5.79 and has increased 5.3 percent this year. Dish added 35 cents to $21.48 on the Nasdaq Stock Market.
To contact the reporters on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net; Kelly Riddell in Washington at Kriddell1@bloomberg.net.
Last Updated: December 11, 2009 00:00 EST
