The Weather Channel has finally returned to DirecTV (NASDAQ: DTV). It does so with a measure of humiliation. The channel’s management was forced to apologize for the “disruption of its service.” The Weather Channel is lucky that it is such a powerhouse online.
Source: Courtesy of the U.S. National Weather Service
According to comScore data, among desktop Internet users in February, The Weather Company sites had 68.7 million unique visitors. That puts it slightly behind Turner Digital, which posted 68.9 million in February, and ahead of CBS Corp. (NYSE: CBS) at 65.3 and Apple Inc. (NASDAQ: AAPL) at 63.8 million. By means of comparison, the smallest of the three Internet portals, AOL Inc. (NYSE: AOL), had an audience of 109.6 million in February.
The size of The Weather Channel’s online viewership allows it to reach a huge audience that cannot be blocked by satellite TV and cable providers, which have battled the company over fee payments for its programming. These disputes are likely to cut The Weather Channel’s revenue from TV providers over time. Online ad sales may be the only area of substantial growth for the firm. Last year, the channel announced that non-TV sources had moved to close to half of the company’s sales. It also reported that its apps had reached 100 million downloads, giving it an audience on portable devices as well as PCs
In its move back onto DirecTV, The Weather Channel took a hit on its programming plans:
As part of the new pact, The Weather Channel agreed to reduce reality programming by half on weekdays; return instant local weather and allow authenticated DIRECTV customers to watch The Weather Channel video programming on multiple devices inside and outside the home.
And its public admission about the dispute was terrible public relations for the company:
“Our apologies to DIRECTV and their customers for the disruption of our service and for initiating a public campaign,” said David Kenny, CEO of The Weather Company, parent to The Weather Channel. “Our viewers deserve better than a public dispute, and we pledge to reward their loyalty with exceptional programming and more weather-focused news.”
As it retreats from its traditional sales market, like so many old media companies, its only chance at a successful future is online.
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