Viacom channels go dark on EchoStar in dispute over programming fees

Times Leader ^ | 3/9/2004 | Catherine Tsai

[Born Conservative]

ENGLEWOOD, Colo. - Satellite television provider EchoStar Communications Corp. pulled the plug on MTV, Comedy Central, Nickelodeon and local CBS affiliates early Tuesday in a contract dispute with Viacom Inc. over the price of programming.

An estimated 1.6 million customers on EchoStar's DISH Network across the nation were affected, a move that could threaten their ability to watch, among other things, the March Madness college basketball tournament.

In place of Viacom programming, some customers in the Denver area saw a message from EchoStar saying the multimedia giant was asking an unreasonable amount for its programming.

A statement from Viacom after the 3 a.m. EST contract deadline passed urged EchoStar customers to stop subscribing to the DISH Network.

"Current EchoStar-DISH Network subscribers who would like to continue receiving BET, CBS, Comedy Central, MTV, Nickelodeon, Nick at Nite, and all our other channels can easily switch," said a statement from spokeswoman Susan Duffy after the channels were turned off.

She said Viacom was "dismayed and disappointed" by the DISH Network decision, and said the company "refused to entertain a reasonable proposal or to negotiate in earnest."

"We have solid business partnerships with virtually every other satellite and cable TV operator - except for EchoStar-DISH Network," the statement said.

DISH also posted an announcement about the cancellation on its Web site, along with a plea for consumers to call CBS.

"DISH Network will always have a place for CBS and we're willing to pay for retransmission rights, but Viacom is holding the public airwaves hostage, trying to extract concessions and higher rates on programming unrelated to CBS," EchoStar chairman Charles Ergen said in a statement released as the deadline for the cancellation approached.

Echostar said Viacom had sought rate increases up to 40 percent over the length of the contract, which "potentially equates to hundreds of millions of dollars" in payments, Ergen said.

EchoStar said it would provide $1 monthly credits to customers who lose CBS programming, and another $1 for those who subscribe to additional Viacom channels.

But Viacom's statement it couldn't understand EchoStar's position.

"They recently hiked their subscribers' bills by as much as $3 a month. Yet they are unwilling to consider paying an additional six cents a month per subscriber for the right to carry our channels," the company said.

DISH customers in markets in New York, Los Angeles, Chicago, Philadelphia, San Francisco, Boston, Dallas-Fort Worth, Detroit, Minneapolis, Miami-Ft. Lauderdale, Denver, Pittsburgh, Baltimore, Salt Lake City, Green Bay, Wis., and Austin, Texas, lost their local CBS affiliate programs as well.

Viacom and EchoStar began sparring after a contract for the DISH Network to broadcast Viacom channels expired Dec. 31.

The contract was extended at least three times, voluntarily and by court orders. The latest court order for the programming to continue expired at the overnight deadline.

In January, EchoStar filed a lawsuit in federal court in San Francisco alleging Viacom was illegally trying to force EchoStar to carry Viacom-owned MTV, Spike and other cable channels at unfair prices in exchange for the right to carry 18 CBS-owned stations in 16 media markets.

Ergen had said previously he would rather drop CBS than submit to Viacom's demands.

Englewood, Colo.-based EchoStar delivers hundreds of channels to 9 million subscribers.

[Bikers4Bush]

I'm behind DISH on this. I have no need for MTV and don't see why I should be forced to get it and pay for it.

[Buckeye McFrog]

anything that reduces MTV viewership is a plus for America!

[Bikers4Bush]

And that goes double for BET.

[Monty22]

My gf told me that her Dish stuff looked weird this morning. I didn't know what she was talking about at the time.. Very odd.

I have Directv and wasn't watching anyway, but now I understand why she said that.

[Siouxz]

Yeah, but Nickelodeon? I love my cartoons. Glad I just switched from Dish a couple of weeks ago (because of VERY poor customer service!).

[longtermmemmory]

How do Viacoms advertisers feel about this. Will they be getting a rebate?

[Bikers4Bush]

Pretty much anything Nickelodeon shows you can buy on DVD.

As for your poor customer service. I have absolutely no complaints about them. They are a million times better than Adelphia was.

[Monty22]

Directv's customer service has to be worse. 100% pure indian rudeness.

[spectre]

We wrote to "Charlie" last night, and gave them a big thumbs up for our approval.

BTW, we subscribe to the full Dish network package. And we certainly won't miss the programs Dish is deleting, since we never watched them to begin with :~)

sw

[tiamat]

I REALLY like Spongebob.

So does my daughter.

[Semi Civil Servant]

It looks like I lost 4 channels in my package. It's no loss to me, but my daughter watches a lot of Nickelodeon.

Dish Network is running a notice on each dropped channel telling people to call VileCom. Both companies will get a LOT of calls today.

I've been very happy with Dish Network. I don't see a reason to switch at all. I do hope if this is long term they add some aditional channels to compensate.

[blackdog]

I'm a Dish subscriber and have my house in turmoil because my three year old has lost his Nick Jr. I couldn't be more pleased. I'm behind Dish too.

I just hope that Dish is just as supportive of it's customers when Dish is squeezing the end users by bundling it's programming.

It's good to see that a company is willing to draw a line. Isn't that why the Direct TV/Dish deal was nixed by congress? We can't have just one monopoly.

[blackdog]

I bet Canada is going bonkers eh? Nickelodean and it's productions are good stuff. Almost all Canadian produced.

I miss Danger Mouse from the eighties. I used to rush home from work to watch DM.

[Kakaze]

" And that goes double for BET. "

I got rid of BET too....locked it out on all my sets what a bunch of trash.

[Wright is right!]

"I'm a Dish subscriber and have my house in turmoil because my three year old has lost his Nick Jr. I couldn't be more pleased. I'm behind Dish too."

I've heard many people say that DirecTV has a slightly sharper picture on most channels than Dish. You could always change - they are having a big promotion at the moment.

Michael

[RichardW]

I'm with Dish on this. I had lousy service with DirectTV and went to Dish and always can get through to them for technical assistance. I'm sticking with them.

[Richard Kimball]

Heck, take the money you're paying Viacommies and get some decent programming. I couldn't care less about the loss of these channels.

[Wright is right!]

"Directv's customer service has to be worse. 100% pure indian rudeness."

Um, DTV's customer service is right here in the USA. I don't know if it's staffed with Navajos, Kiowas, Creeks, or Chickasaws or not.

While I've had one bad experience with them, it was over an arcane matter of Motorhome Exemptions for Distant Networks which was partially my fault for improperly explaining, the vast majority of my DTV experience has been quite positive. Plus, for most programming changes, you can simply make them online and by the time you log off, the changes are in effect in your service.

Michael

[Monty22]

Are you sure Directv's support is USA based?

[blackdog]

I think I'll hang tough with Dish. Viacom is the instrument of the devil. I like the idea that Dish means what they say.

I've never cared for opportunists.

[blackdog]

You have to be very specific in asking CS location questions. They'll say it's US based and Clintonesque in their answer. Sure it's US based, that's where the server is that routes the calls to India.

They all lie. If you ask the right questions you can catch them at it.

[petitfour]

Praise God!

I had to say that. I wish all cable companies would drop Viacom's evil rot from their line-ups. It is mafia-like for Viacom to group Nickelodeon with MTV and force consumers to pay for both when MTV is such rot. We've done quite well without paying $30+ a month for all those must-have channels, including FOX News. We can read about what is on television. And what we don't know about, we don't seem to miss. Very liberating.

[SoothingDave]

I'm a Dish subscriber and have my house in turmoil because my three year old has lost his Nick Jr. I couldn't be more pleased. I'm behind Dish too.

My wife just called with the same symptoms. My daughter will have to make do with the Disney offerings until Nick and Noggin come back.

Ultimately, Dish is trying to save us all money. And Viacom is certainly acting in a predatory manner, holding contracts for local service hostage to demands that Dish carry additional Viacom channels.

SD

[OldFriend]

Wow, how did those folks in the Denver area get so lucky!!!!

[Hurricane Andrew]

Frankly, I think this was handled very poorly. This is the first I heard about it. Yeah, I can live (better actually) without MTV, BET, and that trash, but there are issues I have with it.

First, if Dish wanted to start an outcry against Vilecom, they should have begun the process weeks if not months ago. By simply haveing the stations go dark, they are hurting their customers and will have much of the outcry, especially from the masses, directed at them, not Vilecom.

Second, I need my local stations. All of them. Well, I don't need WB, but I do need the rest. The wife is going to have my head if the dispute is not settled by Survivor, and frankly, I'll be a bit peeved as well. I'll have Dish's head if March Madness becomes March Nothingness.

Finally, with three young children and a wife who's a stay at home mom with kids ages 8, 6, and 4, her life without Blues Clues and Dora the Explorer to buy her that little bit of peace in the afternoon to buy her that time to get things done is going to be a nightmare. Try explaining coprorate manuevering to a 4 year old who's crying because he can't watch Blue's Clues.

I have no idea what I'll do. I've already lodged complaints to both parties. Right now I don't think much of either, I'm not a fan of DirectTV, and I can't stand my local cable company.

[UB355]

I dispute your statement. I have had dishnetwork since July 2003. Their customer service is outstanding and in the USA

[Wright is right!]

"Are you sure Directv's support is USA based?"

Yuppers. I've had occasion to talk with them several times over the years, and every one I talked with said they were in this state or than - none of which was Assam. Sometimes you get Colorado, sometimes Phoenix, sometimes Et-Lanta. Never Bangalore.

Michael

[Dawgreg]

We've been customers of DISH for years and have the full programming package. We have always been pleased with their customer service and tech support. Charlie Ergen is trying to do the right thing (imho) and stand up to a bully. I think I'll call Vilecom and ask them HOW MUCH IS ENOUGH??? Dang, they own half the world as far as communications and entertainment........so why would they want more? You go Charlie...........this household is behind you 100%!

[Born Conservative]

We've had DirecTV for 3 years, and any contact we have had with them has been positive. We are also very happy with the actual service/signal also.

[Monty22]

Well, I did call at like 3am a bunch one night, got all foreign people.

Maybe their nightshift only is offshore.

[glock rocks]

Let's see how Charlie plays this one out...

I won't miss CBS, or most of the garbage,

but Nick? my kids'll drive us nuts.

and Spike? (no Star Trek NG) eeeek!

[Born Conservative]

Ping

[SoothingDave]

every one I talked with said they were in this state or than - none of which was Assam. Sometimes you get Colorado, sometimes Phoenix, sometimes Et-Lanta. Never Bangalore.

You aren't aware that Indians are given "backstories" and American names and kept abrest of American stuff?

If "Tom" you talk to is supposed to be from Dallas, he is made aware of how to complain about how the Cowboys did that day or how cruddy the weather has been.

SD

[ProudGOP]

a move that could threaten their ability to watch, among other things,

the March Madness college basketball tournament.

It has better be resolved by then or I am switching to DirectTV. I got dish with the understanding that they would buy Hughes (DTV) so I would be able to get the NFL Sunday Ticket. That fell through so I've been without the Ticket for 2 years.

[petitfour]

Your wife will survive. I have seven children, and they watched NickJr every morning for years. We got rid of our cable subscription due to Viacom garbage, and our children have been fine. We had videos collected over the years, and the children actually watched the old ones. And they play. Peacefully.

[mewzilla]

And you can buy it on DVD and see the whole show, not the version that was gutted to make way for all the extra commercial time that we have now.

[SoothingDave]

a move that could threaten their ability to watch, among other things, the March Madness college basketball tournament.

Ain't you got a backup set of amplified rabbit ears?

SD

[Monty22]

Simple solution: Netflix +DVD Xcopy+DVD-R burner.

[mewzilla]

Um, I'm embarrassed to admit this, but I'm a tech trog :(

[js1138]

Yeah, but Nickelodeon? I love my cartoons. Glad I just switched from Dish a couple of weeks ago (because of VERY poor customer service!).

How can a satellite company have poor customer service? I have DirecTV and can change my programming package over the internet and see the change in 10 minutes. I can, if I want, get HBO for one evening to see something special. I can order pay-per-view over the internet without having my receiver hooked to a phone line. Does DISH not let you do these things?

[pepperdog]

I agree, we did have DirectTV and a ruder bunch of people I've never encountered. Not to mention their incompetency! If Dish never brings MTV back I'll cheer.

[CajunConservative]

BTW, we subscribe to the full Dish network package. And we certainly won't miss the programs Dish is deleting, since we never watched them to begin with :~)

Same here and except for occasionally watching commedy central for southpark, I won't miss any of those channels. I am eligible for CBS long distance , I really like CSI, and picked Atlanta and it's still on the air, so it must be independently owned.

[technomage]

I'm with Dish on this. I had lousy service with DirectTV and went to Dish and always can get through to them for technical assistance

Interesting. We had Dish a number of years back and switched to DirecTV because of lousy Dish service. We have been quite happy with DirecTV since. Guess is goes to show that no company can be all things to all people.

By the way, to the DirecTV subscribers, did you all see the notices scrolling along certain channels concerning the Dish network losing channels? We saw them a number of times. I was under the impression that the Dish/DirecTV deal did not go through, yet there were notices for Dish on DirecTV.

Anyone else?

[Moby Grape]

Dittos on Spongebob....one of the funniest cartons I have ever been addicted to.

[Monty22]

There seems to be a massive gulf between those with good DTV service and those with bad.

I get the feeling they are 'testing' out offshoring, and those with bad service are the test subjects.

I bet they'll go full offshore despite the complaints anyway, and believe me I howled.

[CajunConservative]

How can a satellite company have poor customer service? I have DirecTV and can change my programming package over the internet and see the change in 10 minutes. I can, if I want, get HBO for one evening to see something special. I can order pay-per-view over the internet without having my receiver hooked to a phone line. Does DISH not let you do these things?

It's the same with DISH. I do all I need over the internet. It's not a problem at all.

[SoothingDave]

By the way, to the DirecTV subscribers, did you all see the notices scrolling along certain channels concerning the Dish network losing channels? We saw them a number of times. I was under the impression that the Dish/DirecTV deal did not go through, yet there were notices for Dish on DirecTV.

That was Viacom putting the messages on their feed that went out to everyone. I noticed it first last weekend.

Interestingly enough, as soon as the message would start scrolling, Dish would black out that portion of the screen. I initially thought some hacker was getting into their (Dish) system. Only after I checked online did I see there was corporate warfare going on.

SD

[Petronski]

I saw the notices on local cable. Vilecom added them to the raw feed.

[technomage]

Interesting.

Thanks!