** URGENT ANNOUNCEMENT 3/28/14 **
Zito Media expects to be required to remove Viacom programming from its lineup on April 1 at the end of its current contract. Despite extensive negotiations over the past months, Viacom continues to demand an increase in its current rates which is more than thirty (30) times the rate of inflation. In addition, Viacom refuses to allow Zito to carry its programming on an optional tier so that only customers who actually want to pay for this price increase would have to bear the cost of it. While programming cost increases have tended to exceed inflation, this type of demand is unprecedented and would lead to price increases to our customers which would be unacceptable. We will continue to negotiate with Viacom in order to attempt to bring their programming back to our lineup at acceptable rates.
In order to ensure that its programming lineup continues to be strong, Zito is adding programming to its lineup as well as adding more high definition channels to its offerings. The company is also continuing to expand and enhance its data network so that its customers can stream high quality video through the internet. Over the last several years, a great deal of video content has become available on the internet through providers such as Hulu, Amazon, and Netflix as well as directly through programmer web sites. We have positioned our network to be the premier provider of this type of on demand content to our customers' homes.