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.

[SoothingDave]

Dish drops 5 channels - MTV, VH1, Comedy Central, BET and CBS and will deduct $1 from your bill.

$2 actually. $1 for everyone who is losing the cable channels and $1 if your local CBS affiliate is off-the-air.

Let CBS charges pass on to consumers and require the unbundling of channels. Let the consumers vote with their dollars.

If only. This would be simply much too simple and direct of a solution. Just pay for the channels you want.

SD

[Xenalyte]

A message to this effect was scrolling across the bottom of whatever I had on in the background last night, but since we're Warner Cable (I know, I know), I figured it wasn't exactly germane to my life.

[js1138]

I'm a DSS customer, but I'm rooting for DISH on this one. I would like to have more choices in packaging and not less. counting the science and history channels, which are increasingly devoted to junk, I surf through 20 channels, at most.

[banjo joe]

100% pure indian rudeness.

OT perhaps, but try calling AT&T customer "service".

[Gabz]

We have cable, so I real don't have a dog in this......but my husband desperately wants to switch to satellite and is leaning toward DISH.

But your like your wife........the loss of Nick would be a semi nightmare in this house....I don't know who for moreso - the 5yo or my husband!!!

As you know, my local CBS affiliate is out of Salisbury and not CDB owned so would not be affected - it's also close enough to bring in on rabbit ears.....although the only time I usualy put it on is in the morning for the weather and school delay/closing announcements.

I'll have to make sure my husband keeps an eye on this development, because he was planning to get serious and do something about switching next week.

[Monty22]

What are the AT&T guys like?

[OldFriend]

Useless channel list:

C-SPIN

[dixierose]

I've had DirectTV for about 7 years now (Started out as Primestar, then became DirectTV with the buy-out). I have never had any problems talking to their customer service reps. I always get to talk to a human fairly quickly, and I always hang up satisfied with the answer and/or solution.

[Monty22]

I've had Directv since the days of USSB being a seperate service for the premiums. they used to be good, never needed to call much. A month ago I did and got the Bangalore treatment.

One guy flat out admitted he was in South America. The rest sounded hindi for sure.

[dixierose]

Do you call the 1-800-directv number? I guess I'm lucky enough to have a "local provider" that I have to call...Pegasus Satellite. That's where my payment goes as well. That may be the difference between customer service stories.

[Monty22]

Ohhh, I have Pegasus now too. *Pegasus* support is USA based. I asked them, and the lady was clearly American. 1800directv went to offshore. Most of them said they aren't allowed to say where they are, and so on. Plus that distinctive ol' accent.

[Calvin Locke]

Dish Network is running a notice on each dropped channel telling people to call VileCom.

Surfing this AM, Spike TV was telling people to call Dish.

I did not realize that it was an exigent situation. I have Adelphia cable, which has its own problems.

I try to avoid CBS/Viacom wheneven possible. The advertisers will just have to find other ways to get to me. Too bad for
the local affiliate.

I get some of the programs on CTV (Canadian).

[Hurricane Andrew]

Once they get this ironed out, I'd highly recommend it. We switched from Comcast to DISH in January 2001, and have loved it. Fee increases have been modest, adn they have added a ton of channels. Seems like Comcast would raise rates and take away channels. Plus, there's nothing like watching the Sopranos in 5.1 surround sound! I think overall DISH has the better technology and programming package, but DirectTV has NFL Sunday Ticket. In the end, as much as I wanted Sunday Ticket, I opted for the programming package. Sounds like your husband thinks like I do.

We'll be pulling out the rabbit ears Thursday night if this isn't solved by then. Good thing we can pick up 16 and 47 here in Milford!

[Gabz]

Yup 16 and 47 come in just fine for us here as well.

My big concern with either DISH or DirectTV is I believe their "local" packages are all from Virginia Beach and Norfolk, not Salisbury....that's a drawback for school closings.

We no longer have Comcast, but 20 years in Dover - I sure know what you mean about them and their rate increases and stupid channel changes. We have Charter, but it doesn't have 2 channels that I really used to enjoy and it has a lot of stuff I find to be a total waste. However, it is digital and has a lot more choices when it comes to news, and kids programmming than Comcast did and it's cheaper than Comcast, so I don't complain about no Court TV or food channel (much)


The end all will be his decision, but I will let him know about your experience with Dish. Thanks for the info.

[Monty22]

The best system there currently is for TV is the Tivo/Directv integrated packages. All in 1 unit, fantastic stuff.

[Hurricane Andrew]

As of now, I believe you're right about the locals, but I think DISH is expanding their local markets into the second and third tier markets (i.e. Salisbury) quicker than DirectTV. I'm not positive, but when Dish and DirectTV were in merger talks, I think that was one of the talking points. It may be on a longer schedule now that the Feds nixed the merger, but it was out there at some point.

[Gabz]

I really appreciate the info. I've been following the conversation on this and the other thread.

Even if they don't carry 16 or 47, I can still get them on rabbit ears and a quick check of some websites tells me that the norfolk stations do carry closing listings for my local school district...and since that is primarily the only time I look at the networks - I'll be fine either way!!!

[SoothingDave]

Dish network also has a receiver available with a built-in digital video recorder, like a Tivo. I also understand that they do not charge you a monthly fee for it, like Tivo does.

SD

[CajunConservative]

I have that and it works well.

[ProudGOP]

I moved last year so I never bothered with a backup antenna.