EchoStar Willing To Drop CBS In Dispute With Viacom [dish network]

DOW JONES NEWSWIRES via yahoo ^ | Friday March 5, 5:17 AM | By Mark Wigfie

[KneelBeforeZod]

WASHINGTON (Dow Jones)--Echostar Communications Corp. (DISH) will drop the top-rated CBS network from its satellite television lineup rather than accede to demands of the network's owner, Viacom Inc. (VIA, VIAB), says Charles Ergen, Echostar chairman and chief executive.

"This is extortion at the highest level," Ergen told reporters Thursday following a speech sponsored by the free-market think-tank, the Progress and Freedom Foundation. "Viacom has crossed the line."

EchoStar and Viacom are in a dispute over what rate EchoStar must pay for CBS and what Viacom cable networks it must carry. Ergen said Viacom threatened to withhold the Superbowl from EchoStar in the dispute, a move that was restrained by a federal judge hearing an antitrust case brought by EchoStart against Viacom.

But the judge's restraining order expires next week, and if no agreement is reached, EchoStar must stop retransmitting CBS. Ergen said Echostar also carries 20 other Viacom channels, but is balking at Viacom's demand that it carry the Nickelodeon GAS channel.

Viacom could not be reached for immediate comment.

The dispute is over 15 major market cities where Viacom owns and operates the CBS station. In the 90 markets where the CBS affiliate is independent, EchoStar could still carry the signal.

The judge's temporary restraining order expires on Monday at midnight, after which time EchoStar would have to stop carrying the 15 stations.

The rules governing satellite's relationship with broadcasters were set by the Satellite Home Viewer Improvment Act, which expires at the end of this year. Amendments to the law in 1999 allowed satellite providers to carry local stations while restricting their ability to carry network feeds from distant stations.

Ergen is pushing for Congress to change the law this year to allow satellite providers to carry high-definition digital television broadcasts from distant television stations if the local station hasn't yet made the transition to digital service. The policy would serve viewers, he said in a letter to FCC Chairman Michael Powell released Thursday, by providing them with high-definition service while at the same time encouraging local stations to provide it.

The policy is opposed by the National Association of Broadcasters, whose member stations could lose viewers if EchoStar could carry distant high-definition stations. Such a policy change would reduce the incentive for EchoStar and its competitor DirecTV, now a unit of News Corp. (NWS), to carry local signals, the NAB says.

[Gigantor]

I wrote DISH an email and told them I support them and would have no poblem living without the likes of MTV on my set.

[longtermmemmory]

I like Dish even more now.

[AUH2OY2K]

Is CBS still on the air? I don't think I've turned the dial below channel 14 for years.

[Kakaze]

You could be missing, survivor, morning / evening news and a prime time line-up.....pretty sure we could all live without that.

During football season theres always a set of rabbit ears or a pub with a big screen.

I'd say its no loss.

[ambrose]

CBS has Dan Rather!

[mewzilla]

Okay, I've got a question. If CBS is all that's being dropped, why did I see a crawl on MTV this morning saying that the Dish Network was threatening to drop that channel, and for subscribers to call their sat provider?

[airborne]

I saw the same thing. I'd prefer an ala cart service so I could pick and choose instead of packages that consist of 10% of what I want and 90% crap that nobody wants!

[El Conservador]

Won't happen here in St. Louis :(

KMOV Channel 4 is owned by Belo, rather than by Viacom.

[I_dmc]

The issue here is really one of technology. Currently, Dish and DirecTV use one beam per satellite that covers the entire nation, meaning delivering local channels to each market is far more difficult than it is for cable.

Ka band satellites can have 50 spot beams, making delivering different signals to each market more viable. Dish prefers to deliver a national feed to every market and they're not that picky about whether you qualify for that feed.

The purpose of CATV originally was to provide a good signal for the community (Community Access TV). The satellite networks providing national feeds of networks is something that they should be willing to pay the negotiated price for. Rebroadcasting local channels to just that local channels market, providing a clearer digital signal isn't something that should have an outrageous price tag attached, but thats not what Dish/DirecTV do.

[norwaypinesavage]

"Is CBS still on the air?"

CBS? Isn't that some kind of soup?

[RayChuang88]

I'm going to watch the news and see if Dish Network does pull the plug on all Viacom-owned channels. If they do it the result could be one very ugly court fight....

[breakem]

More viacom channels.

The pact covers most of Viacom channels like MTV, Nickelodeon, Spike TV, Comedy Central and BET. Additionally, Comcast will augment its digital suite of services by launching Nicktoons and MTV Hits and increasing the distribution of MTV2, Nickelodeon GAS, VH1 Classic and VH1 Country.

[plewis1250]

Well, it looks like they cut the feeds. Surfed to VH1-C and its gone, as well as MTV, Nick, BET, and Comedy Central (There might be a few more I missed... there are just so many channels...) I enjoy the fact that DISH is "fighting for the little guy" but when the little guy is missing the channels he wants... and that was in the lease agreement... what is he supposed to do then? What if they were fighting NewsCorp... I'd be HOT as heck without my FNC. They need to realize they actually HAVE customers...
- Peter

[ContemptofCourt]

They did here in the 'burgh. I can clearly live without my MTV, but I am hooked on SpongeBob....and the wifey is hooked on Survivor.

From a business perspective, this should be an interesting little pissing match.

[ContemptofCourt]

This is an interesting play by Dish. And you are correct...this does not bode well for future disputes, which are sure to come, regarding transmission fees.

Once everyone gets pissed off enough, hopefully we will eventually get a la carte service.

[Impy]

Jackasses! (both companies)

They're all rich, and now I gotten stick a fork in my tv watch the Guardian tonight? Iditots.

[js1138]

I'm sure DISH can come up with a CBS package for a couple bucks more a month. DSS does stuff like that. I pay a buck a month for extra science channels.

[pnz1]

MTV, VH!, Nickelodeon, and the Comedy channel are gone from our DISH..

[RayChuang88]

But did Dish Network also pulled the plug on Showtime and The Movie Channel, Viacom's premium paid service programming channels?