By Victoria Stilwell AT&T Inc. (T) is still negotiating to renew its U-verse TV contract with AMC Networks Inc. (AMCX), saying AMC Networks is seeking an "excessive" rate increase in overall fees. AT&T said the rates AMC Networks is seeking are disproportionate compared with the network's viewership on its channels. AT&T said it believes AMC Networks is asking it to pay nearly double what other competitors pay, including a smaller-sized competitor. "We don't think that's reasonable, especially in these economic times, and we will continue to work toward a fair deal," AT&T said in a statement. A representative for AMC couldn't immediately be reached for comment. AT&T's U-verse delivers internet, TV and phone services, and its TV service alone has about four million subscribers. AT&T pays AMC Networks a fee to carry channels including AMC, Independent Film Channel and WE tv. AMC airs well-known dramas such as "Mad Men," "Breaking Bad" and "The Walking Dead." The contract is set to expire June 30. Dish Network Corp. (DISH) in May said it will drop all of AMC Network's cable channels, citing the channels' high costs "compared to their low viewership." Dish said the programming on AMC was available to its customers through other media outlets such as Amazon.com, iTunes and Netflix. Dish's move and AT&T's negotiations highlight increasing tensions in the television industry as pay-TV distributors balk at the rising cost of programming. Disputes over renewal terms for channels have become common. Adding to the tensions is the practice of popular channels being bundled with less popular channels owned by the same company. Shares of AT&T slipped 0.2% to $35.11 in recent premarket trading, while shares of AMC Networks were unchanged at $36.54. AT&T stock is up 16% so far this year, while AMC Networks is down 3% in the same period. Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com
