Posted on 03/09/2004 2:13:14 PM PST by El Conservador
ENGLEWOOD, Colo. - Satellite TV giant EchoStar Communications Corp. pulled the plug on MTV, Nickelodeon and CBS affiliates in more than a dozen cities early Tuesday in an escalating legal dispute with Viacom Inc. over the price of programming.
As many as 9 million customers of EchoStar's DISH Network nationwide were affected, including 1.6 million who watch CBS programming in New York, Chicago, Los Angeles and other cities. The move that could threaten their ability to watch, among other things, the March Madness (news - web sites) college basketball tournament.
"We are willing to negotiate as soon as Viacom is willing to be reasonable," EchoStar spokesman Steve Caulk said. However, he said he knew of no negotiation plans.
"Viacom, which owns CBS, got the airwaves for free from the American public, allowing them to provide CBS," Caulk said. "Now they're using that as leverage to force us to pay ridiculous amounts for other channels people don't necessarily want."
A Viacom spokeswoman called EchoStar's complaints "overblown."
According to federal lawsuit filed by EchoStar in January, Viacom has illegally tried 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.
Echostar said Viacom sought rate increases up to 40 percent over the length of the contract which would total potentially hundreds of millions of dollars.
Viacom officials said they don't understand EchoStar's arguments and issued a statement urging customers to drop the DISH Network.
"They recently hiked their subscribers' bills by as much as $3 a month," the company said. "Yet they are unwilling to consider paying an additional six cents a month per subscriber for the right to carry our channels."
"They're talking about a 40 percent increase. That number is overblown," Viacom spokeswoman Susan Duffy said.
In place of the usual programming, some customers in the Denver area saw a message from EchoStar saying Viacom was asking an unreasonable amount to carry its programming. The DISH Network also posted an announcement on its Web site, along with a plea for consumers to call CBS.
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 overnight Monday.
The dispute affects DISH Network CBS customers 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.
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.
Englewood, Colo.-based EchoStar delivers hundreds of channels to 9 million subscribers. Besides CBS, media conglomerate Viacom also owns MTV and the Paramount movie studio.
I don't have any sympathy for Viacom, but in this case, Viacom has the upper hand. Echostar needs Viacom more than Viacom needs Echostar.
The customer loss can be hard-hitting for Dish.
And, let's face it: Most people would rather have channels from a softcore smut peddler than missing March Madness.
I'm Rick James, b!+c#!!!
As Samuel L. Jackson, mocking the Samuel Adams commercials: Mm, mm, b!+c#!!!
His humor is racially charged, but still very funny.
They are already hitting themselves hard. I reduced my package two months ago for all the garbage I had to take just to get Fox News. About ready to just cancel out completely and go back to network for free. I'm a night person anyway, and half the stoopid channels I'm paying for are not even broadcasting.
Without Viacom, I am much happier..
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