MundoFox seeks to revoke the Station Affiliation Agreement it entered with ACVN on May 7, 2012 and the Production Services Agreement dated May 10, 2012 and receive “damages to which it is entitled.” The damages aren’t specified in the lawsuit.
In the lawsuit, MundoFox alleges that ACVN didn’t keep its end of the bargain by refusing to give the new network the WJAN (channel 41) channel position, instead airing MundoFox programming in “significantly inferior” channel positions in cable and satellite carrier systems, resulting in a clear breach of contract.
“As a result of MundoFox programming (a) being swapped to inferior channel positions, (b) not being carried on DirecTV, (c) not being carried on Dish Network, and (d) not being properly listed in program guides, which listed MundoFox programming in the bargained-for channel positions, MundoFox’s initial launch had less exposure, viewership was lower, soliciting advertisers became more difficult, and advertising revenue decreased,” states the lawsuit.
MundoFox claims the “primary reason” it struck a deal with ACVN was to secure favorable channel positions under station WJAN, including Comcast channel position 12 in the Miami-Ft. Lauderdale designated market area (DMA).
“ACVN understood and acknowledged that securing Comcast channel position and comparably favorable channel positions on DirecTV, Dish Network, and AT&T was material for MundoFox and, but for these channel positions and the attendant capability of reaching all of the households in the Miami-Ft, Lauderdale market, MundoFox would not have entered into the Station Affiliation Agreement for station WJAN or the Production Services Agreement.”
The lawsuit also alleges that ACVN failed to deliver content and access to talent for programming that was to air after the launch of MundoFox, as stipulated in the production services agreement.
MundoFox states it made “good faith efforts to resolve this channel position dispute” to no avail. So, in December of 2012 it decided to terminate the agreements with ACVN due to their “material and continuing breaches.”
In response to a request for comment about the other affiliate agreements with América CV, MundoFox sent Media Moves the following statement:
“The filing concerns one market. We consider America CV Network an important part of the MundoFox family of stations, and they remain a valued affiliate in both New York City and Puerto Rico.”
A statement from América TeVé’s CEO Omar Romay will be available later today.
Here’s the lawsuit: