Can Dish Network Be Trusted?

tvpredictions.com ^ | December 5, 2010 | Philip Swann

[Las Vegas Dave]

Washington, D.C. (December 5, 2010) -- Dish Network CEO Charlie Ergen sometimes brags about his days as a Blackjack 'card counter' in the casinos of Las Vegas. In fact, the young Ergen was so good at skirting the Rules of the House that he was banned for life from playing in Sin City.

As a reporter who has followed Ergen and Dish Network now for nearly two decades, I have to say that the wheeler-dealer still acts as if the rules don't always apply to him. Or at least his company does.

Over the years, Dish has gotten entangled in numerous business relationships that have provoked charges of deception from partners and customers, and sometimes even judges, attorney generals and federal investigators. The company's executives have never been charged with a crime, but like Ergen's card counting, Dish's modus operandi is bending the rules, leaving people to question whether it's trustworthy.

In Dish's defense, the satcaster's questionable tactics are often designed to keep subscriber costs down or enable it to provide a more viable alternative to satellite rival DIRECTV. But that doesn't excuse what is sometimes a breathtaking disregard for the truth and commonly accepted industry behavior.

The latest example of this "what can I get away with?" philosophy came last week when Dish Network issued a press release saying it was adding the MoviePlex channel to its 'HD Platinum' package.

Now the HD Platinum package is supposed to be a package of high-def channels for HD subscribers. (In fact, I called Dish's 1-800 number on Friday and they assured me that every channel in the HD Platinum package is in HD; they also assured me that MoviePlex was in HD.) But as it turns out, MoviePlex is not even available in HD; it's a standard-definition channel.

However, by saying in the press release that MoviePlex was only being added to the 'HD Platinum' package, Dish left the impression that the channel is in HD.

Why would it do that? The HD Platinum package costs an extra $10 a month; the more channels in the package, the more likely that people will subscribe to it. (Plus, Dish and DIRECTV are engaged in an HD channel war; each service is trying to create the perception that it has more HD channels than its rival.)

Dish spokeswoman Francie Bauer told me via e-mail on Friday that the channel will also be added to Dish's America's Top 250 package, which is not a 'HD centric' package. However, she did not respond when I asked her why that fact wasn't included in the press release. She also didn't respond to two inquiries as to whether people would think MoviePlex is in HD if it's now part of the 'HD Platinum' package.

Now you might say the MoviePlex dust-up is not a big deal. But, folks, I'm just getting warmed up. This is only the latest chapter in a long history. For instance:

Lying About HD Channel Counts? * In April 2010, Dish Network issued a press release saying it now had 200 HD channels. However, when a few reporters (including yours truly) asked for a list of the channels, the company initially refused. But it later relented and it turned out that the 200 HD channel count included 57 HD PPV titles. That's right. Dish was (and still is) counting a single PPV movie as a channel.

Destroying Evidence? * The Denver Business Journal reports that a New York state court this month sanctioned Dish Network for destroying emails that was considered evidence in its lawsuit with the failed Voom TV service. (Voom is seeking $2.5 billion in damages from Dish because the satcaster dropped its 15 HD channels from the air; Voom, which soon closed its doors after the channels were dropped, claims that Dish violated its contract to carry the channels.) The judge's sanction means that the jury in the Dish/Voom case will be told that Dish destroyed evidence.

Patent Violations? * Dish has been involved in a six-year patent battle with DVR company TiVo. (TiVo says Dish violated its patent by installing similar software in its DVRs.) In 2006, the satcaster lost a jury trial in Texas, requiring it to pay TiVo more than $100 million in damages. But the judge also ordered Dish to disable its DVRs because of the patent violation.

Dish has since filed numerous appeals, as is its right. However, the judge in the original case has filed a contempt order against Dish (which Dish is appealing) and many neutral observers would say that Dish's legal strategy is largely a stall. Since the case began, TiVo's subscriber totals have fallen from 4.4 million to 2.3 million and the company has been dramatically weakened by the lack of a resolution in the case.

Breaking Federal Laws? * The Federal Trade Commission ruled in 2009 that Dish violated federal law when its customer service reps called people who had signed up on the 'Do Not Call' registry. The agency also said the company made 'robocalls" (automated messages) in violation of the federal telemarketing rules. Dish blamed the calls on third-party partners, but agreed to offer restitution to eligible consumers. (In part because of the FTC decision, the Better Business Bureau has given Dish Network just a 'C+' rating for overall trust issues.)

Not Playing by the Rules? Last month, at Dish's request, a federal arbitrator ruled on the impasse between Comcast and Dish over how much the latter should pay to carry SportsNet California, which broadcasts San Jose Sharks and Sacramento Kings games. The arbitrator ruled in Comcast's favor, but instead of accepting the ruling, Dish removed the sports channel from the air and it's still off as of today.

Dish was not required by law to accept the ruling, of course, but it's odd for a company to reject an arbitrator's decision when it was the one to actually request it. It's also doubtful that the federal arbitrator would have intervened if it had known that Dish was simply 'gaming the system' -- if it had won, it would have accepted; it lost, so it didn't.

Unfair Business Practices? Dish Network last year agreed to pay $6 million to settle charges that it improperly marketed, promoted and sold its products and services. The case was brought by attorneys generals in 46 different states; the state officials claimed that Dish hid certain restrictions in promotional advertisements. Utah Attorney General Mark Shurtleff said after the settlement: "This settlement should send a clear signal that companies must treat their customers fairly."There are more instances of similar behavior that go back several years, but I'll let you consult Google to learn more. There's also the fact that Dish has been involved in lawsuits with numerous companies over the years, from DIRECTV to TiVo to News Corp. to ESPN to Sonicview to the Federal Communications Commission. For some reason, the company has trouble reaching resolutions without legal action. Every company has reason to sue (or be sued) from time to time, but Dish's lengthy history of legal snafus again suggests the company doesn't like to play by the normal rules.

And there are even more reasons to wonder whether you, as a consumer, can trust what Dish Network says and does. The satcaster has gotten involved in several fights with programmers over the last year, which forced it to drop some popular channels from its lineup. For instance, Dish viewers were without their favorite Fox regional sports channels for nearly a month and they have been without four Disney HD channels since early summer.

Dish believes in playing hardball in programming renewal talks so you just never know when it will drop one (or more) of your favorite channels.

Bottom Line: Dish Network now has more than 14 million subscribers and it has done many admirable and innovative things to stay competitive with larger rivals, such as DIRECTV and Comcast. The satcaster has also been a consistent supporter of HD, adding channels in the last several months when DIRECTV would not.

But the company needs to stop playing fast-and-loose with the facts, getting involved in frequent lawsuits and engaging in so many fee fights with its programming partners. The constant turmoil -- and questionable promotional tactics -- only leaves current and prospective customers feeling uneasy and asking the question:

Can Dish Network be trusted?

[Las Vegas Dave]

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[gorush]

26 months without TV...best decision we ever made!

[bigbob]

it seems to me you answered your own question

[Eaker]

Being the third post on a TV thread proves just how much you miss it too.

Did you have to stop watching TV like an alcoholic has to stop drinking?

[Chickensoup]

22 years without tv. Life without pressure

[SoothingDave]

I’ve had Dish for over ten years. I don’t have any complaints. I like that they play hardball with the programming providers instead of just rolling over and increasing fees to their customers.

I also think the whole Tivo lawsuit thing is ridiculous. It’s a frivolous patent. There is nothing non-obvious about recording to a computer disk rather than to a tape.

[mirkwood]

I get 2 channels on the antenna. I watch Sunday afternoon football, wednesday night at 8 for “the middle”. At nine I watch “modern family”. On friday night I watch “the good guys” at 9. I exercise, I try to eat right and exercise but there is nothing better than to walk in my door in MAINE WHERE IT IS COLD 50 WEEKS A YEAR and maybe climb up the friggin 28 foot ladder to adjust the friggin antenna. Oh, heck yea..I should not see Chris Wallace on Sunday morning at 10. I guess I could put my brain up my butt, but I would rather be aware. My point is ..you can feel righteous..but I am sick of hearing it.
Love,
Mirkwood

[Las Vegas Dave]

it seems to me you answered your own question

Thanks for your reply, but it was the original title of the thread, I did not alter it in any way..

[gorush]

I don’t feel righteous, I just try to feel good...in spite of it all.

[SVTCobra03]

“26 months without TV...best decision we ever made!”

We have had our Samsung 50” Plasma HDTV and home theater system for five months and it’s the best decision we ever made.

[Squantos]

Same here .....cut cable etc in Nov 08.

Hulu is as close as we get.....to TV.

[Squantos]

Yep...:o)

[Eaker]

;<)

Understandable, but most FReepers who incessantly post on TV threads, every TV thread, that they stopped watching did so because they are better than the rest of us.

And here I was going to get you a laptop for Christmas with a 72” plasma screen!

[TSgt]

We’ve been a Dish customer for almost 5 years and don’t have any complaints.

The picture quality and DVR technology is incredible.

Agreed about the frivolous Tivo lawsuit.

[Rocky]

A relative of ours had DirectTV. She called them to complain about service interruptions, but could not get a live person on the line. She called the Better Business Buraeau, and they told her that there were thousands of complaints about DirectTV.

Dish is not the only company with problems.

[charlie72]

Besides all the good reasons, the cartoon Assy McGee is broadcast at 6 AM CST to 6:15 on 177W while kids are getting ready for school, followed by another indecent cartoon, is a good reason to ditch Dish.

[murron]

I have Direct TV and I have never had a problem with getting a live person on the line. One night at midnight something went wrong with our receiver and we called and got a live technician (as opposed to a dead one) who talked us through fixing our receiver and we were back in business in no time.

[Neidermeyer]

Charlie likes to cheat his business partners , the independants that sell and install DishNetwork ... Ask any of them about unwarranted chargebacks.

I stopped watching dishnetwork when they phased out the last ROM11 cards ,, before then I was wide open on DishPlayers running ROM2’s with my own software for over 5 years. The ROM10X cards are a little tricky but can be opened.

[SoothingDave]

You stopped watching Dish Network when you could no longer steal it? Is that what you said?