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Viacom channels go dark on EchoStar in dispute over programming fees
Times Leader ^ | 3/9/2004 | Catherine Tsai

Posted on 03/09/2004 5:42:32 AM PST by 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.


TOPICS: Business/Economy
KEYWORDS: dish; dishnetwork; echostar; viacom
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To: 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!).

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?

41 posted on 03/09/2004 7:35:27 AM PST by js1138
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To: RichardW
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.
42 posted on 03/09/2004 7:37:20 AM PST by pepperdog (God Bless and Protect our Troops)
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To: spectre
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.

43 posted on 03/09/2004 7:38:35 AM PST by CajunConservative
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To: 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

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?

44 posted on 03/09/2004 7:39:28 AM PST by technomage
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To: tiamat
Dittos on Spongebob....one of the funniest cartons I have ever been addicted to.
45 posted on 03/09/2004 7:41:57 AM PST by Moby Grape
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To: pepperdog
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.
46 posted on 03/09/2004 7:43:36 AM PST by Monty22
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To: js1138
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.

47 posted on 03/09/2004 7:43:48 AM PST by CajunConservative
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To: technomage
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

48 posted on 03/09/2004 7:46:20 AM PST by SoothingDave
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To: technomage
I saw the notices on local cable. Vilecom added them to the raw feed.
49 posted on 03/09/2004 7:47:58 AM PST by Petronski (John Kerry looks like . . . like . . . weakness.)
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To: SoothingDave
Interesting.

Thanks!

50 posted on 03/09/2004 7:49:21 AM PST by technomage
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To: CajunConservative
"How can a satellite company have poor customer service? "

Well, if you call about something, then you get it.

Things break, or you want to talk to a person sometimes.

51 posted on 03/09/2004 7:49:39 AM PST by Monty22
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To: Monty22
I have dealt with them on the phone too. I have never had any problems with them. However, I do most of my business with them through their website and have had no problems at all with it either.
52 posted on 03/09/2004 7:52:04 AM PST by CajunConservative
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To: Howlin; Ed_NYC; MonroeDNA; widgysoft; Springman; Timesink; dubyaismypresident; Grani; coug97; ...
DirecTV is your friend...[g]

Just damn.

If you want on the list, FReepmail me. This IS a high-volume PING list...

53 posted on 03/09/2004 7:54:51 AM PST by mhking
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To: SoothingDave
I'm afraid DISH is going to lose this one, unless CBS is lying about the other providers accepting their terms.

On the other hand, DISH is the only current provider of HDTV, and it leases some of its local channel programming to DirecTV, so it has some market clout. CBS is going to have to deal with its advertisers who are unexpectedly off the air.
54 posted on 03/09/2004 7:59:08 AM PST by js1138
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To: Bikers4Bush
And that goes double for BET.

LOL and BUMP to that and post #2!

55 posted on 03/09/2004 7:59:10 AM PST by kstewskis ( "The Passion of The Christ" is here....and no I'm NOT giving up Mel for Lent!!)
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To: OldFriend
Wow, how did those folks in the Denver area get so lucky!!!!

we got lucky here in the Phoenix Metro area too ;)

56 posted on 03/09/2004 8:03:43 AM PST by kstewskis ( "The Passion of The Christ" is here....and no I'm NOT giving up Mel for Lent!!)
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To: Petronski
They had done the same to the feeds to Dish until Dish started blacking out that part of the picture.
57 posted on 03/09/2004 8:07:01 AM PST by Bikers4Bush (Flood waters rising, heading for more conservative ground. Write in Tancredo in 04'!)
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To: Semi Civil Servant; All
Dish drops 5 channels - MTV, VH1, Comedy Central, BET and CBS and will deduct $1 from your bill. Seems like we could hit several birds with one stone here, CBS desire for higher revenues, viewers desire for lower cost of a personalized package, the conflict of governments broadcast standards and freedom of speech and the majorities unhappiness with the direction content has taken. Let CBS charges pass on to consumers and require the unbundling of channels. Let the consumers vote with their dollars.
58 posted on 03/09/2004 8:08:05 AM PST by mpreston
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To: js1138
I'm afraid DISH is going to lose this one, unless CBS is lying about the other providers accepting their terms.

I'm not sure. There are other issues as well. First, Viacom is strong-arming Dish to put their Nick GAS channel on a lower-tier of service. Meaning yet another channel for them to get revenue from, whether people want it or not.

Second, Dish wants to provide HDTV service of the networks to people whose local affiliate is not yet broadcasting in HDTV. The local affiliates, of course don't want to lose eyeballs. But Dish and people who bought HDTV want the best programming that can be offered. I know if I spent thousands on a TV, I would want to watch the Super Bowl in HDTV whether or not my local affiliate was up to snuff or not.

So there are negotiating points.

SD

59 posted on 03/09/2004 8:08:49 AM PST by SoothingDave
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To: Born Conservative
What I wish we could do is pick and choose which channels we want. That way I am not paying for those useless channels, such as MTV, HGTV, and the Sci-Fi channel.
60 posted on 03/09/2004 8:10:42 AM PST by cpprfld (Who said accountants are boring?)
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