EchoStar, Viacom resolve programming fee dispute (CBS back on DISH)

AP via Atlanta Journal-Constitution ^ | 03/11/04 | DAN ELLIOTT

[general_re]

DENVER -- Ending a fee dispute that left millions of DISH satellite television customers without several popular channels, EchoStar Communications Corp. agreed early Thursday on a new contract with CBS parent Viacom Inc.

EchoStar pulled the plug on Viacom programming Tuesday, leaving up to 9 million DISH Network viewers nationwide without Viacom channels including MTV, VH1, Comedy Central, BET and Nickelodeon.

The dispute also left as many as 2 million DISH viewers without CBS shows when EchoStar pulled the network's programing in cities including New York, Los Angeles, Chicago, Philadelphia, San Francisco, Miami, Boston, Denver, Minneapolis and Dallas.

DISH subscribers in those cities were threatened with the loss of the upcoming NCAA men's basketball tournament, which begins March 18 on CBS.

Terms of the new contract were not disclosed. Viacom programing was restored to the DISH network within 20 minutes of the agreement's signing, said EchoStar spokesman Marc Lumpkin.

The deal will add the Nicktoons channel to some DISH packages this spring. It also extends the length of DISH's contract to carry the CBS HD East and West, Spike TV and CMT channels.

"We understand that this has been a difficult few days for our customers, and we thank them for all the encouragement they have given us throughout," EchoStar chairman and CEO Charles Ergen said in a joint statement with Viacom. "We also look forward to a long relationship with Viacom in which we can provide their quality channels to our viewers."

In the statement, Viacom president Mel Karmazin apologized for the service disruption and thanked viewers "for their patience and support."

The blackout was the largest disruption since 2000, when a similar dispute between Time Warner cable and ABC interrupted service to 3.5 million cable customers.

MTV spokeswoman Jeanine Smartt, a spokeswoman for MTV, cited customer displeasure as a factor in the renewed negotiations that led to a deal.

"Really, it was the outcry from the viewers that truly, I think, brought EchoStar back to the negotiating table," Smartt said. "They called us by the thousands and thousands."

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, with the latest court order expiring late Monday.

EchoStar said Viacom illegally tried to force it to carry channels at unfair prices in exchange for the right to also carry 18 CBS-owned stations in 16 markets.

It said New York-based 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 EchoStar was fighting over what amounted to 6 cents more per customer per month.

DISH customers will receive a credit of $1 if they lost CBS programming and an additional $1 if they lost any Viacom channels during the blackout period.

Besides CBS, media conglomerate Viacom also owns MTV and the Paramount movie studio.

[general_re]

Wonder who came out on top....

[Bikers4Bush]

Echostar Dish.

[eddie willers]

Bump

[Tanniker Smith]

Don't know, but we were rooting for Dish. I was with Charlie on this one.

24 hr Nicktoons? Don't need it. I need my kids in bed at a decent hour, not up watching TV. And my alleged 180 channels already carries about 60-70 channels that I'll never watch -- or should I say listen to in the case of music stations . . .

Now, can we black out channels that carry the Olsen Twins?

TS

[Publius6961]

leaving up to 9 million DISH Network viewers nationwide without Viacom channels including MTV, VH1, Comedy Central, BET and Nickelodeon.

Awwwwwwww.
Did I miss the opportunity?

I had every intention of contacting the Dish Networks and thank them for deleting all those useless channels. And I was hoping that they would reduce my bill for what they are worth: about 15c a month...

[yarddog]

I have Dish Network and noticed a bunch of channels blanked out but I had never watched a single one of them. The only one which worried me was TV Land which kept giving a message that it was no longer being carried but in fact was being shown.

[yarddog]

Great minds think alike.

[general_re]

24 hr Nicktoons? Don't need it.

IIRC, I don't think Charlie wanted it either, but the fact that you've got it now suggests that Viacom got what it wanted in that respect. Wonder how the money argument worked out.

[glock rocks]

EchoStar pulled the plug on Viacom programming Tuesday

is this newspaper owned by viacom, or is the AP reporter just stupi

um. nevermind.

[Publius6961]

Seriously, does anyone have a clue what the "controversy" was all about? If we all could tailor satellite service to what we actually want to watch, about half of the existing channels would simply disappear...

I hate entertainment welfare.

[RedWing9]

I say listen to in the case of music stations

You mean you hear music on those stations???

[Publius6961]

EchoStar said Viacom illegally tried to force it to carry channels at unfair prices in exchange for the right to also carry 18 CBS-owned stations in 16 markets.

What's up with this?
Has anyone else ever wordered why subbscribers can't permanently blank out channels which just clutter up our TV viewing? I could comfortable whittle down my "150" channels to a manageable (and useful) 25.

[miloklancy]

Charlie Ergan had to negotiate a way to get these channels back. Immediately when these channels were off the air, Echosphere Corp. stock fell and would have continued to plummet if Ergan had not come to a decision on this. The truth is Viacom had a better hand than Ergan did in this. And in the end Ergan couldn't just discontinue business with Viacom when it clearly was hurting his bottom line.

[general_re]

You can't unsubscribe to individual channels, by and large, because companies like Viacom, Time/Warner, Disney/ABC, and so forth don't want you to be able to unsubscribe. The best you can do is block the channels from being displayed in your lineup...

[Hurricane Andrew]

Yeah. Actually, it was more like the other way around. Echostar didn't "pull the plug", they had the plug pulled on them, when Viacom withheld consent for Echostar to transmit the signals.

The dispute was over 1) pricing and 2) station bundling. Viacom wanted to increase rates about 3-4 times the rate of inflation, and wanted to force Echostar to carry the 24 hr. Nicktoons on the basic channel package. Looks like each side gave in a little bit. I'm curious to find out how the pricing issue ended up.

In any case, over-the-aird broadcast stations should not be allowed to be included in any station bundling. CBS is given the airwaves for free. If Vilecom wants to force a carrier to carry MTV in excahnge for allowing them to also show Nick, fine. But broadcast should be left out.

[John W]

I know it doesn't reduce your costs,but,with Dish the favorites lists allow you to essentially do that.

[MizSterious]

They say viewer displeasure brought them back to the bargaining table--it's my understanding that the viewer displeasure was with Viacom and MTV, not Dish. Many I know who subscribe to Dish wrote and called, as I did, to tell Viacom "Good riddance, don't let the door hit you on your way out."

[MizSterious]

Use your favorites list. You can also lock channels out.

[MizSterious]

Echosphere? Maybe you were looking at the wrong stock. It's Echostar. The report I read from AP yesterday morning said Echostar's stock went up, while Viacom's went down.

[yarddog]

I probably should just block out those channels but being of Scottish descent, I just hate to pay for something and not be able to use it.

Some of those channels I know have never been watched in this house but just in case, I leave them open. I did watch a movie on one of the video music channels once because a girl I knew was in it. It was so bad as to be unbelieveable.