Dish-Disney Deal Hung Up On The Hopper?
Washington, D.C. (October 2, 2013) - This is an update on our earlier coverage of the fee fight between Dish and the Disney-owned ESPN. See earlier articles below.
The carriage standoff between Dish and Disney could be over the satcaster's ad-skipping Hopper HD DVR, which Disney's ABC has attempted to terminate in court, reports Bloomberg News.
The two companies on Monday night announced that they have agreed to a short-term extension in their carriage talks, at least temporarily avoiding a blackout of ESPN, Disney-owned ABC affiliates in eight cities and the Disney channels on ESPN's airwaves.
But Bloomberg writes that a new programming agreement could be in jeopardy because of the Hopper, and Disney's insistence that Dish carry two new Disney channels, Fusion and the SEC Network.
The Hopper could be the most difficult obstacle to overcome. The set-top can automatically skip commercials during recorded network prime time programs. The networks, including ABC, say the HD DVR violates their copyrights because it removes the commercials without their permission. Dish maintains that the Hopper is just a better version of the traditional HD DVR because it skips the ads without the viewer needing to pick up a remote to perform the same task.
Thus far, Dish has successfully blocked the networks' legal efforts to stop subscribers from using the Hopper, but the lawsuits are still pending.
Bloomberg says the two companies have given themselves an extra day or two to work out a solution, but a longer negotiation is also possible.
Dish could use the Hopper as leverage to force Disney to accept lower fees to carry its channels, including ESPN and the ABC-owned affiliates, which are in eight large markets. For example, in return for agreeing to dismantle the Hopper so subscribers couldn't use its ad-skipping feature when ABC is on, Dish might be permitted to pay less to carry the Disney suite of channels.
TVPredictions.com has written in the past that Dish Chairman Charlie Ergen views the Hopper as a possible weapon in carriage talks and would gladly dump it if it meant paying less to carry certain channels.
See earlier articles on this subject below.
Dish Keeps ESPN For Now; But Loses 18 Stations
Washington, D.C. (October 1, 2013) - This is an update on our earlier coverage of the fee fight between Dish and the Disney-owned ESPN. See earlier articles below.
Dish and Disney announced last night that they have agreed to a short-term extension in their carriage talks, at least temporarily avoiding a blackout of ESPN, Disney-owned ABC affiliates in eight cities and the Disney channels on ESPN's airwaves.
The current agreement between the companies was scheduled to expire at midnight, but they issued a terse statement last night announcing the extension. Terms of the extension were not revealed, however, leaving Dish subscribers guessing if or when they could suddenly lose such popular channels as ESPN.
On the bright side, both Dish and Disney have refrained in the name-calling that often leads to a channel blackout in fee fights. And the short-term extension could suggest the companies are close to a deal.
On the less-than-bright side: Time Warner Cable and CBS agreed to two short-term extensions in their recent carriage talks before the companies eventually broke off talks, which led to a 30-day channel blackout.
Dish Chairman Charlie Ergen, who is known for taking risks, is also a wild card in the equation. The Dish executive has hinted that it might be time to say no to paying for expensive sports programming such as ESPN.
In related news, Dish's contract with Media General expired last night, according to the web site for WNCN-TV, Media General's NBC affiliate in Raleigh/Durham, North Carolina. Consequently, as of 3 a.m. ET today, it appears that Dish has lost its Media General signals, representing 18 channels in 17 markets.
Dish has not issued a comment in the last 24 hours on the Media General talks. WNCN has set up a web site to explain to Dish viewers how they can continue to watch by using an antenna or changing TV providers.
See our earlier articles on this subject below.
Is Dish Facing a Black Monday?
Washington, D.C. (September 25, 2013) - This is an update on our earlier coverage of the fee fight between Dish and the Disney-owned ESPN. See earlier articles below.
In just five days, Dish could lose 18 local TV stations in 17 markets, ABC-owned affiliates in eight large markets, including New York, Chicago and Los Angeles; Disney's suite of channels; and the ESPN channels. All in one day.
If that's not the definition of a Black Monday, I don't know what is.
Of course, Dish still has time to reach new carriage deals with Media General, which has those 18 local TV channels, and Disney, which owns ESPN, the Disney channels and the ABC affiliates. But time is running short and Dish subscribers must be feeling a little uneasy today.
Media General and Dish are continuing to trade insults in the press -- see Richmond Times Dispatch article -- but the satcaster and Disney have been very quiet in recent days, which could be good news for those negotiations. Usually in fee fights, the more noise in public, the bigger the gap in company positions.
Still, the Dish-Disney talks are far more complicated than the Media General negotiations and it will take serious concessions on both sides to work out a deal by Monday when the current agreement expires. (The Media General deal ends Monday, too.)
Hope springs eternal, but at this point, it might take a contract extension in both negotiations to avoid a massive channel blackout on Monday for Dish's 14 million plus subscribers.
See earlier articles on this subject below.
Analyst: Dish Will Blackout Disney, ESPN This Month
Washington, D.C. (September 17, 2013) - This is an update on our earlier coverage of the possible fee fight between Dish and the Disney-owned ESPN. See earlier articles below.
A Wall Street hedge fund manager yesterday tweeted that he's hearing that Dish will blackout Disney at the end of the month when their programming agreement expires.
"Negotiations are not going well," wrote Mike Bergen of Bergen Capital, an investment capital firm, which has more than 20,000 followers on Twitter.
Bergen's comments reflect a growing belief that Dish and Disney will not work out a deal. The satcaster's eight-year carriage deal with Disney, which owns ESPN, the Disney channels, and ABC affiliates, expires at the end of the month and some analysts believe a classic fee fight is inevitable.
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At the center of the impasse is Dish Chairman Charlie Ergen who has publicly railed against rising programming fees, particularly with sports networks, and could use the Disney negotiations to make a point that rising fees must stop now.
Ergen has not been shy about allowing his subscribers to lose access to even popular channels for a short periods to put pressure on content companies to keep their costs down. He has also questioned the wisdom of paying excessive fees to carry sports networks, such as ESPN, which are not viewed by a majority of the audience, although their core audiences are zealously loyal.
See our earlier articles on this subject below.
Is Dish's Charlie Ergen Crazy Enough to Drop ESPN? Yes!
Washington, D.C. (September 6, 2013) - This is an update on our earlier coverage of the possible fee fight between Dish and the Disney-owned ESPN. See earlier article below.
Dish and Disney. You will likely hear those two words tossed together quite a bit in the next three weeks. The satcaster's eight-year carriage deal with Disney, which owns ESPN, the Disney channels, and ABC affiliates, expires at the end of the month and some analysts believe a classic fee fight is inevitable.
The Wall Street Journal and Bloomberg News both published lengthy articles on the players and their concerns in the last day but the pieces, while well researched, did not offer any new revelations on the progress of negotiations.
John Skinner, ESPN's president, has been running around telling anyone who will listen that he thinks that the negotiations are going well. But that's what content companies normally say at this point; the idea is to put the pressure on the other side of the table.
As for Dish, they have been more tight-lipped, choosing to refer reporters to a stale comment from Dish CEO Joe Clayton from last month that said he's hopeful negotiations are going in the right direction.
But this show really isn't about John Skinner or Joe Clayton. It's the Charlie Ergen Show -- and Ergen alone will decide how it ends.
Ergen has railed against the rising costs of programming, particularly sports, even to the point of wistfully speculating that some TV provider one day will dump all of its sports programming out the back door to save money. Some TV provider...
I don't expect Ergen will ever do that, but the Disney negotiations are the perfect venue for him to practice his "I'm crazy; I'll do anything" style of deal making. Over the years, Ergen has willfully engaged in legal battles with TiVo (lost); DIRECTV (case dropped); the broadcast networks (case over ad-skipping Hopper HD DVR still pending) and a host of other major industry companies, including Disney itself (he lost that one, too.)
Ergen's legal department is the busiest place in America and he likes it that way. Lawsuits, protracted procedural battles, and public arguments are all important things in his eyes because they serve to make points, points that can later lead to more efficient financial practices or business opportunities.
So, yes, Charlie Ergen is just crazy enough to tell his subscribers at the end of the month that they can no longer watch ESPN. Or some of their ABC affiliates. Or the Disney channels (Oh, no, not Doc McStuffin!) He will say it with pride, too, adding that the channel blackout, however long, will eventually save them money.
He will announce that channel blackout even before Disney does and he will have a smile on his face because he will believe with everything in his heart that it's good for his company in the long run. And that it will strike a blow against rising sports programming costs.
It may not happen this way. Dish and Disney may realize that both run risks if they can't come to a new deal. But the problem with that is: Charlie Ergen lives for risks.
See our earlier article on this subject below.
Dish vs. ESPN: The Mother of All Fee Fights?
Washington, D.C. (August 6, 2013) - Dish's eight-year carriage deal with ESPN is scheduled to end next month and it could lead to the nastiest and most important fee fight yet in the TV industry.
David Geotzl of MediaPost.com notes that relations between Dish and ESPN and Disney, which owns ESPN, have not been cordial over the years with lawsuits filed from both sides over issues such as back carriage fees and alleged unfair rates.
While it's in the best interest of both companies to keep broadcasting ESPN to Dish's 14 million plus subscribers, the acrimony between the two and Dish's interest in reducing its cost for sports programming overall could lead to an extended channel blackout
And if it does, it could encourage other TV providers to take a stand against ESPN's demands for significantly higher carriage fees to help offset its multi-billion contracts to carry the NFL, college football and other sports.
Media Post says the current Dish-ESPN deal is set to expire September 30, which would be during the 2013 NFL season. Without ESPN, Dish subscribers would be unable to watch Monday Night Football. However, Dish Chairman Charlie Ergen, a steely negotiator, has shown a willingness in the past to do without seemingly critical programming to make a point in carriage talks.
Media Post estimates that Dish is now paying an average of more than $5 a month per subscriber for ESPN, but could be asked to raise that to $7 a month or more. It's hard to believe that Ergen will readily accept that rate and it could trigger his call for ESPN to be a separate, a la carte channel, something ESPN would fiercely oppose because it would mean fewer viewers and fewer advertising/carriage dollars.
Dish could also pull a few rabbits -- or kangaroos -- out of its hat by telling ESPN that it will not subject the network to its Hopper HD DVR's automatic ad-skipping feature if it relents on higher carriage fees. Dish currently only allows subscribers to use the feature on primetime programs on the broadcast networks (ABC, CBS, Fox and NBC), which has led to lawsuits from the networks.
The more you examine the Dish-ESPN negotiation, the more thorny you see it can become, particularly since Ergen once wistfully said he could foresee a day when a TV provider did not offer any sports.
September should be an interesting month in the sports world, and not just on the field.
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