- Eligible DISH customers can choose to
drop cost of local channels, savings of $10 per month
- DISH offers qualified affected
customers digital over-the-air (OTA) antenna and installation at no
cost, thousands have switched
- CBS rejects DISH offer to extend
contract for benefit of consumers while negotiations continue
- Broadcaster fees will rise to $12.8
billion by 2023, up almost 40 percent from today, estimates SNL
Kagan
Tonight DISH reported that CBS Corporation chose to black out
DISH customers’ access to 28 local channels in 18 markets across 26
states (view full list here). CBS is blocking consumers in an
effort to raise carriage rates for local channels and gain
negotiating leverage for unrelated cable channels, all with
declining viewership on DISH.
“CBS is attempting to tax DISH customers on programming that’s
losing viewers, tax DISH customers on programming available for
free over the air, and tax DISH customers for content available
directly from CBS,” said Warren Schlichting, DISH executive vice
president of Marketing, Programming and Media Sales. “Our customers
are clear: they don’t want to pay a CBS tax. It’s regrettable and
unnecessary that CBS is bringing its greed into the homes of
millions of families this Thanksgiving.”
On a recent investor conference call, CBS boasted about the rate
increases promised to shareholders, going from $250 million in 2012
to a forecasted $2.5 billion by 2020. Those desired increases come
as DISH customers are watching less CBS, with average viewership
down 20 percent over the past 3 years.
As DISH works to reach an agreement, the company is offering
digital over-the-air (OTA) antennas at no cost so that customers in
affected markets can watch CBS’s local broadcast channels for free.
Eligible DISH customers have the option to completely drop their
local channels from their programming package, saving $10 on their
monthly bill.
Free Antenna Installation, Seamless Integration
In recent weeks, thousands of eligible DISH customers in CBS
markets have made the switch to OTA, accessing news, popular
network shows and sports from CBS and other local channels for
free, over the air. Customers with qualifying equipment,
programming, and location can choose to receive local channels free
over the air and save $10 per month on their bill. At no cost, DISH
will install an antenna for qualifying customers in CBS markets
based on the reception available at their home.
“Switching to OTA-delivered locals can unlock $120 savings
annually for DISH customers,” explained Schlichting. “Customers
will see the local channels and show information for the most
popular channels in the guide on the Hopper DVR, and can watch and
record local channels using their DISH remote without switching
inputs on the TV. We want to help customers with the choice to save
money. DISH doesn’t save money, but consumers can.”
Local station availability over the air is dependent on
geographic location and topography. Consequently, some customer
locations may not qualify for an antenna installation.
Streaming Availability and Forced Bundling at Issue
“On top of free availability with an antenna, the fact that CBS
makes its content available a la carte on a streaming app has
further eroded the value of its content for DISH and our
customers,” added Schlichting.
In addition to asking for significant price increases for local
channels, CBS is attempting to “force bundle” unrelated and
low-performing cable channels (CBS Sports Network, Pop and
Smithsonian Channel) at a premium.
“By attempting to force bundle its cable channels with its local
broadcast stations, CBS is using local viewers as leverage to raise
rates for channels fewer people are watching,” said
Schlichting.
DISH viewership data reveals that on CBS Sports Network, Pop and
Smithsonian Channel, average viewership is down more than 10
percent in the past 3 years.
DISH Offer of Extension, True Up Rejected
DISH and CBS had been making steady progress in their recent
negotiations, and DISH was hopeful that they would come to a mutual
agreement to renew carriage of its local stations. In that spirit,
DISH offered a short-term contract extension to CBS that would
include a retroactive true-up when new rates were agreed upon, and
would preserve the ability of DISH customers to access the CBS
stations while negotiations continued. The true-up would ensure
that CBS was made whole at the new rates for the period of any
contract extension.
“With DISH willing to grant an extension and a retroactive
true-up on rates, CBS had nothing to lose and consumers had
everything to gain by leaving its channels up,” said Schlichting.
“Instead, CBS chose to turn its back on its public interest
obligations to serve viewers.”
“We are actively working to negotiate an agreement that promptly
returns this content to DISH’s programming lineup,” added
Schlichting.
Need for Retransmission Consent Reform
“CBS is using its mix of local and national channels against
viewers, abusing outdated laws to try to force consumers to pay
more. This greedy attempt to extort more money from our customers
is one of the main reasons we – and our industry – are asking
Congress to restore balance in the broadcaster-pay TV equation,”
said Jeff Blum, DISH senior vice president and deputy general
counsel. “We are asking lawmakers to reform outdated TV laws to
give our customers the best viewing experience at an affordable
price – without the threat of broadcaster blackouts.”
Along with other pay-TV companies and public interest groups
that form the American Television Alliance, DISH has called for the
U.S. Congress to revamp the out-of-date laws that favor these high
fees and unnecessary blackouts.
Blum continued: “We continue to urge the FCC and Congress to
update a system that emboldens broadcasters to black out
consumers.”
Rising Retransmission Rates
Each year, the cost to carry local broadcast stations rises far
beyond the rate of inflation, leading to blackouts across the
country that affect millions of subscribers of various pay-TV
companies. According to SNL Kagan, a leading source on the media
industry, broadcast fees burdening pay-TV consumers are expected to
reach an unprecedented $9.3 billion in 2017. These same rates, for
channels available free over the air, were as low as $215 million
in 2006, soared to $7.9 billion in 2016 and are expected to reach
$12.8 billion in 2023.
DISH customers can visit DISHPromise.com for more information
and to ask the FCC and Congress to end TV blackouts.
About DISH
DISH Network Corp. (NASDAQ:DISH), through its subsidiaries,
provides approximately 13.203 million pay-TV subscribers, as of
September 30, 2017, with the highest-quality programming and
technology with the most choices at the best value. DISH offers a
high definition line-up with more than 200 national HD channels,
the most international channels and award-winning HD and DVR
technology. DISH Network Corporation is a Fortune 200 company.
Visit www.dish.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171120006235/en/
DISH Network Corp.John Hall, 720-514-5351news@dish.com
DISH Network (NASDAQ:DISH)
Historical Stock Chart
From Mar 2024 to Apr 2024
DISH Network (NASDAQ:DISH)
Historical Stock Chart
From Apr 2023 to Apr 2024