DirecTV in dispute with Comcast over sports cost

NEW YORK (Reuters) - DirecTV Group said on Wednesday it has advised Comcast Corp it plans to file for arbitration in a dispute over rate increases to carry Comcast's sports networks in New England and the San Francisco areas.

Executives from DirecTV, the largest U.S. satellite TV provider, said Comcast is asking for increases of 25 to 40 percent for its subscribers to be able to view games of teams like the National Basketball Association's Boston Celtics and National Hockey League's San Jose Sharks.

The dispute could impact nearly 2 million DirecTV subscribers and also includes programing for other sports franchise like the San Francisco Giants and Oakland Athletics baseball teams and the Golden State Warriors basketball team on the Bay Area sports network.

But DirecTV executives said it was likely the two sports TV networks would remain on air for fans during the arbitration process.

Derek Chang, executive vice president of content strategy at DirecTV, said the increases were several times above normal market rates.

Chang said it was ironic that Comcast, the No. 1 U.S. cable operator, was charging "above market" rates for its sports programing as Comcast has been vocal about the rising costs of sports networks.

"It's somewhat astounding that they can have two polar opposite views on the same topic," said Chang.

He said Comcast is trying to charge 40 percent more for a third less programing on the Bay Area network by dropping games of the Oakland A's and San Jose Sharks.

DirecTV said though it has sent notice of its intention to go to an independent arbitrator, under a process mandated by the U.S. Federal Communications Commission, it may continue to negotiate on terms with Comcast during a two-week cooling off period. Programing must remain on air during that period.

But after two weeks there is a formal demand for arbitration which includes a final offer which would take place toward the end of the month.

The company said the arbitrator could issue his or her decision within 30 days from the date that he or she is appointed but it could run on for several months.

A Comcast Sports Network spokesperson was not immediately available for comment.

(Reporting by Yinka Adegoke; editing by Richard Chang)