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DirecTV: Lifetime Broke Pact

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From Bloomberg News

Satellite television provider DirecTV Group Inc. has sued Lifetime Entertainment Services, saying the women’s cable network reneged on a deal to lure customers from rival EchoStar Communications Corp.

In a lawsuit filed Wednesday in Los Angeles federal court, DirecTV accused Lifetime of retracting a Jan. 30 offer it had sent to about 30,000 customers of EchoStar Communications Corp.’s Dish Network promising $200 if they would switch. DirecTV accuses Lifetime of breach of contract.

In January, Lifetime “approached DirecTV with the idea of offering a group of Dish Network customers a $200 check if they would switch to DirecTV,” the complaint said. The offer “was primarily directed to lure away customers of the Dish Network.”

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DirecTV says it didn’t know that Lifetime was negotiating a new agreement with EchoStar at the same time. Lifetime retracted its offer for the EchoStar customers Feb. 3, DirecTV said.

In addition, Lifetime breached its Jan. 8 contract with DirecTV by giving EchoStar better terms than DirecTV, according to the lawsuit.

Lifetime executives declined to comment. Robert Mercer, a spokesman for El Segundo-based DirecTV, didn’t return a call to his office.

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