In a dramatic turn of events, Newsmax has drawn comparisons between its ratings and those of Vice TV, igniting a conflict over its carriage on the cable provider DirecTV. The conservative news station stopped broadcasting on cable TV right at 11:59 p.m. ET on January 24, following an unresolved dispute regarding a new deal. This incident raises questions about the dynamics between conservative media outlets and cable providers, especially as it pertains to viewership and revenue negotiations.
DirecTV expressed a willingness to continue offering Newsmax, but the channel's request for a fee—similar to those demanded by other major news networks—created a sticking point. Newsmax, along with several Republican congressmen, has contended that the network was unfairly "de-platformed" due to its conservative stance, a charge that DirecTV has firmly denied. This situation highlights the ongoing debate about the treatment of conservative channels in the media landscape.
Compounding this issue, DirecTV cited Newsmax's relatively low ratings as a significant factor in its decision-making process. According to USTVDB figures, Newsmax's audience hovers around 113,000, starkly contrasting with rival Fox News, which boasts over 2.2 million viewers. Michael Hartman, DirecTV's chief external relations officer, noted that Newsmax's average household audience is only 101,000, representing less than 0.1 percent of total TV households—an alarming 92 percent lower than Fox News. This substantial difference in viewership raises questions about the viability of Newsmax's business model going forward.
In response to the situation, Newsmax has indicated a perceived inequality in how ratings are evaluated, especially when compared to what it terms "liberal channels." The network argues that Vice TV, which has a much smaller audience of just 60,000, still enjoys full carriage and licensing fees from DirecTV. This situation was further complicated by TPG Capital, which holds a 30 percent stake in DirecTV and made a $450 million investment in Vice in 2017, raising flags about potential conflicts of interest.
Chris Ruddy, CEO of Newsmax, lamented the landscape of conservative media, stating, "Only Fox News is left as conservative-leaning, and you have 22 liberal channels." He pointed to Vice TV's lower ratings, which are merely 20 percent of Newsmax's least-watched hour, yet still command fees comparable to what Newsmax is seeking.
Ultimately, the crux of the matter lies in the negotiation of carriage fees, which are typically determined by the perceived value of a network in attracting subscribers. DirecTV has previously proposed terms that would have allowed Newsmax to keep its advertising revenue intact while being shown on streaming platforms without charge, yet the two parties could not reach an agreement.
As the dust settles, the implications of this conflict between Newsmax, Vice TV, and DirecTV will likely resonate throughout the media industry. The conversations surrounding de-platforming, ratings, and revenue will continue to shape the future of cable news and its relationship with both viewers and advertisers.
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