Having beaten down Viacom, DISH turns to CNN

[mrquackers]

Last month, Dish yanked Viacom programming in a public dispute that was a primer on how not to treat customers. Viacom eventually folded, though, which seems to have given Dish an inflated sense of worth...

http://www.ajc.com/business/content/...3echostar.html
(Link makes you go through a painful subscription process, so reprinted in full below.)

DENVER -- EchoStar Communications warned Monday it could drop programming from its DISH satellite network because of a contract dispute, this time over CNN, TBS, Cartoon Network and Headline News.

The dispute comes just over a month after EchoStar and Viacom Inc. settled a similar conflict.

EchoStar, with 9 million subscribers nationwide, said its contract with Turner Broadcasting System expired Dec. 31. The companies agreed to an extension that has kept Turner programming on the DISH network, but EchoStar spokesman Steve Caulk on Monday refused to say when that extension expires.

"If and when the (extension) agreement expires, we would then have to drop the channels in question," Caulk said. He said Turner was seeking "unreasonable rate increases."

A spokeswoman for Atlanta-based Turner said negotiations are under way and the company hopes an agreement can be reached. Turner Broadcasting is part of Time Warner Inc.

On March 9, Englewood, Colo.-based EchoStar pulled the plug on Viacom programming in a dispute over fees, leaving DISH viewers nationwide without MTV, VH1, Comedy Central, BET, Nickelodeon and other Viacom channels.

About 2 million DISH subscribers also lost programming from CBS, which is owned by Viacom.

The two sides quickly reached a deal, restoring Viacom programming to DISH early on March 11.

[phredgreen]

yeah... when companies start getting too big for their britches and pulling nonsense like this, it's time for the customers to start showing the company how they feel by taking their money elsewhere.

[Mephisto2]

Erm... surely this is the reseller protecting its subscribers by refusing to pay the big cable networks the extortionate fees they are asking? Which, in turn, would be passed on to the end users; ie, you.

Or am I missing something?


Mr Mephisto

[Cynthetiq]

umm viacom folded? no. viacom did not fold.

Knowing that Mel Karmazin is a shrewd business man, he would never sign a multi year deal where the company was going to not be able to pace inflation and give a good return. Note that DishNetwork had already increased it's fees to the consumer, Viacom was asking for a .06/sub increase commensurate with the increase from DishNetwork. Note also that there will be increased proramming provided to DishNetwork customers from Viacom.

from viacom.com

NEW YORK, N.Y., and ENGLEWOOD, Colo., March 11, 2004 -- Viacom (NYSE: VIA, VIA.B) and EchoStar Communications Corporation (Nasdaq: DISH) and its DISH Network today announced that they have reached a long-term, multi-channel agreement that provides for the satellite TV distribution of CBS, BET, and the MTV Networks channels previously carried by DISH Network.

”It’s great to have our networks back in front of all our viewers, and to bring a new service, Nicktoons, to DISH Network subscribers,” said Mel Karmazin, President and Chief Operating Officer of Viacom. "We apologize to our viewers for the disruption in their service, and want to thank them for their patience and support. We look forward to continuing to serve our viewers through DISH Network well into the future.”

”This agreement with Viacom allows DISH Network to remain the lowest-cost, all digital TV provider in the country,” said Charles Ergen, Chairman and Chief Executive Officer of EchoStar. “We understand that this has been a difficult few days for our customers, and we thank them for all the encouragement they have given us throughout. We also look forward to a long relationship with Viacom in which we can provide their quality channels to our viewers.”


The multi-year agreement restores full service of CBS in 16 markets as well as Comedy Central, MTV, MTV2, Nickelodeon, Noggin, GAS, VH1, VH1 Classic, MTV Espanol and BET in all markets. Additionally, the agreement extends the term of the carriage for CBS HD (East and West) channels, as well as Spike TV, CMT and TV Land. DISH Network will also launch Nicktoons on its America’s Top 180 package this spring.

As part of the agreement, Viacom and DISH Network have settled all litigation between the two companies.

[tkkfan]

Also, Dish Network didn't pull the channels, Viacom revoked the written permission to let Dish Network air those channels.

Dish Network also didn't feel some channels were worth a shit, so they told Viacom that they didn't want them. Viacom said plainly, "all or none, bitches!"

Whatever they agreed on is good, but sometimes these big companies act like little babies throwing tantrums.

[heyal256]

acording to this article http://www.reuters.com/newsArticle.j...8&section=news

An EchoStar spokesman said the company is seeking to wean the networks off a "satellite premium" the company had to pay in the past when the service was much smaller.

Caulk said the current dispute is over similar issues. EchoStar wants to negotiate smaller rate increases in the coming years, Caulk said, in order to hold down the cost of the service for consumers.

It basically seems to be an issue of cost and principle. The principle being that they shouldn't need to pay more then cable companies are being charged for the same service.

Of course the truth is always somewhere between the 2 sides of this issue.

[tangledweb]

It seems like DISH is trying to throw a little weight around and keep their margins where they want them. Nothing wrong with that and their subscribers should appreciate their attempt. I don't know how many avenues they exhausted before they dropped the programming but overall, it is their option.

If too many subscribers bitch and complain then it will backfire on them but them's the breaks.

[Phaenx]

They'd better watch it, CNN's imperial cruiser will use it's death ray on their headquarters.

[Cynthetiq]

Originally posted by tangledweb
It seems like DISH is trying to throw a little weight around and keep their margins where they want them. Nothing wrong with that and their subscribers should appreciate their attempt. I don't know how many avenues they exhausted before they dropped the programming but overall, it is their option.

If too many subscribers bitch and complain then it will backfire on them but them's the breaks.

and that is exactly what happened, the customers were pretty pissed off calling up and emailling their unhappiness.

[guthmund]

I, for one, appreciate the hell out of it.

I watch my non-Dish friends bitch and complain about how their cable rates are going up or the customer service is really bad. I don't have this problem. I've always had great luck with customer service and pay a pretty decent price for all the channels I get.

I'm pleased as a pig in shit that a guy like Charlie Ergen's interest coincide with my own. Sure he's not looking out for me per se, but our goals are ultimately the same and if he can throw around a little extra weight to keep my programming fees down, more power to him.