AT&T drops Hallmark Channels from lineup

Disney, TW Cable carriage agreement expected soon

AT&T U-verse TV has dropped Hallmark Channel and Hallmark Movie Channel from its lineup after the parties failed to reach a new carriage agreement.

Both networks went dark for AT&T customers at 12:01 a.m. ET on Wednesday, the Crown Media-owned Hallmark Channels said.

The two sides had been in a war of words over an extension to a carriage deal that expired at day's end on Tuesday. U-verse had informed its subscribers of the possibility of the two networks going dark if a deal wasn't done by then.

Talks reached a standstill late last week. Hallmark Channels said late Tuesday that it would be willing to restart negotiations if they are "fair and in good faith."

Meanwhile, the Walt Disney Co. and Time Warner Cable have continued to work on a new carriage agreement that could be announced as early as mid-day Wednesday. If the process gets dragged out past the end of the current carriage agreement at the end of the day, they are expected to finish the new deal under short-term extension, meaning that no programming outages are expected.