DISH calls for retransmission reform as Raycom treats viewers as negotiation pawns
News Release from DISH Network ENGLEWOOD, Colo., Aug. 8, 2013
In its eighth day of an ongoing blackout by Raycom Media, and amidst the backdrop of a retransmission blackout by CBS on Time Warner Cable for the past week, DISH (NASDAQ: DISH) is calling for Congress to update the outdated local TV carriage rules and protect consumers.
“Since the beginning of the year, Raycom has told its viewers to switch providers no fewer than three times, including twice suggesting DISH as a great choice for consumers, as they play TV providers off of each other using viewers as pawns,” said Dave Shull, DISH executive vice president and chief commercial officer. “Raycom is the poster child of broadcaster manipulation, exploiting outdated retransmission rules to squeeze money from providers, and therefore viewers.”
In January, Raycom was involved in a retransmission blackout with Cox Cable and suggested to its viewers to switch to another provider, including DISH and its competitors. In July, a retransmission dispute with Mediacom led Raycom to again ask viewers to switch. Now, as Raycom speaks to DISH customers, the broadcaster is telling viewers to switch again, including back to Cox Cable.
“The impact of these tactics on consumers should be the focus of retransmission reform in Washington,” said R. Stanton Dodge, DISH executive vice president and general counsel. “The outdated carriage rules have resulted in an historic number of blackouts with millions of subscribers impacted. It is time for reform.”
DISH has introduced a plan to Congress, backed by Time Warner Cable and other video distributors that would protect consumers and reduce the number of blackouts.
“We are asking that pay-TV providers be allowed to temporarily import network content from another market if there are blackouts during retransmission negotiations,” explained Dodge. “This is not a perfect solution, but one that keeps the consumer’s interests at the forefront and prevents disrupting their lives. It partially levels the playing field. We aren’t asking for an advantage, just fair rules. Right now, programmers hold all of the power and they aren’t using it for the public interest, they are using it strictly for profit and to the detriment of the American consumer.”
According to data from SNL Kagen, a leading industry research firm, broadcast retransmission fees rose a estimated 372 percent from 2008 to 2012, and are anticipated to rise more than 1,100 percent by 2018, from $500 million in 2008 to $6.1 billion.
“As pay-TV providers across the board watch our subscriber base level off, we do not have the profit margins to absorb those costs and are forced to pass them on to consumers,” added Shull. “The people left in the dark are viewers. I think consumers are fed up, and I don’t blame them.”
To read Raycom’s suggestion to viewers to switch providers, see the following links:
January: Raycom asks Cox Cable viewers to switch
July: Raycom asks Mediacom viewers to switch
August: Raycom asks DISH customers to switch
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A message for Dish Subscribers from HNN July 02, 2013
At KGMB and KHNL, nothing is more important to us than providing Hawaii with the very best in local news and weather, along with your favorite CBS and NBC programming.
In order to serve our viewers, KGMB and KHNL have in place agreements with the cable and satellite companies that bring our station to your home. In fact, KGMB and KHNL have such agreements in place with every TV provider in our area. Unfortunately, we have been unable to reach an Agreement with Dish Network.
Since July 1, 2013, we have been working to resolve this matter, but so far have been unable to reach an Agreement with Dish Network for the continued carriage of KGMB and KHNL. This is particularly disappointing because all the other TV providers in our area have Agreements with us and those Agreements are fundamentally similar to the one we have been negotiating with Dish Network.
As a result, on August 1, 2013, Dish Network customers could lose access to KGMB and KHNL.
We understand how frustrating this is for you. We share your frustration. After all, you pay Dish Network 100% of your bill each month. Why shouldn't you get 100% of your channels? You can reach Dish Network Service Rep at 1-888-789-2630 to voice your concern.
KGMB and KHNL are committed to resolving this matter. But in the meantime, you should know that you have choices. Our station will remain available on other providers and we are always available free over-the-air.
Thank you for your viewership and support.
FREQUENTLY ASKED QUESTIONS
Q: Why will KGMB and KHNL may no longer be available on Dish Network?
A: In order for KGMB and KHNL to be carried to your home by TV providers like Dish Network, we need to reach agreements that set the terms for them to carry our signal. KGMB and KHNL have such agreements in place with all the TV providers in the market, including Dish Network. However, we have been unable to reach an Agreement with Dish Network.
Q: What can I do if I have lost access to KGMB and KHNL on Dish Network?
A: The good news is that you have choices. First, you can tell Dish Network to put KGMB and KHNL back on the dial. If enough customers speak up, Dish Network may listen. You can reach your Dish Network Service Rep at 1-888-789-2630. Second, you can consider a different TV provider such as Oceanic Time Warner Cable and Direct TV which both carry KGMB and KHNL. Finally, you can always get KGMB and KHNL for free over the air. You can switch to Oceanic Time Warner Cable at 643-2337 or Direct TV at 1-888-640-7663. And you can always get your local broadcast channel free over the air.
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DISH ready to sign deal if Raycom commits to market rates
News Release from DISH Network, Englewood, CO August 5, 2013
DISH customers in 36 markets remain in the dark today despite DISH’s (NASDAQ: DISH) commitment to pay market rates to retransmit Raycom stations.
The following statement is attributable to Sruta Vootukuru, DISH director of programming:
“DISH is ready to sign a deal right now if Raycom will match the words in the contract with its message to viewers. Raycom has publicly told its viewers that they are willing to give DISH the same deal as other providers. All we’re asking is for Raycom to put that on paper and we’re ready to sign the deal now.”
DISH is encouraging customers in the affected markets to call their local Raycom station and demand to be treated fairly.
The action affects viewers of various ABC, CBS, Fox and NBC-affiliated stations in the following markets:
Cleveland, Ohio (CBS); Panama City, Fla. (Fox); Montgomery, Ala. (NBC); Knoxville, Tenn. (Fox); Savannah, Ga. (CBS); Toledo, Ohio (CBS, Fox); Columbus, Ga. (ABC); Richmond-Petersburg, Va. (NBC); Cincinnati, Ohio (Fox); Jonesboro, Ark. (ABC); Tyler-Longview, Texas (ABC); Biloxi-Gulfport, Miss. (ABC); Paducah, Ky. (CBS); Honolulu, Hawaii (CBS and NBC); Tucson, Ariz. (CBS); Shreveport, La. (CBS); Baton Rouge, La. (CBS); Charlotte, N.C. (CBS); Charleston, S.C. (CBS); Ottumwa-Kirksville, Mo. (Fox); Birmingham, Ala. (Fox); Dothan, Ala. (Fox); West Palm Beach, Fla. (Fox); Augusta, Ga. (Fox); Lubbock, Texas (NBC); Lake Charles, La. (NBC); Huntsville-Decatur, Ala. (NBC); Albany, Ga. (NBC); Louisville, Ky. (NBC); Hattiesburg-Laurel, Miss. (NBC); Wilmington, N.C. (NBC and Fox); Evansville, Ind. (NBC); Columbia, S.C. (NBC); Jackson, Miss. (NBC); Florence-Myrtle Beach, Fla. (NBC); and Memphis, Tenn. (NBC).
Also affected are various CW and MyNetworkTV channels in five markets:
Baton Rouge, La.; Cleveland, Ohio; Honolulu, Hawaii; Paducah, Ky.; and Richmond-Petersburg, Va.
To learn more about DISH’s negotiations with Raycom, visit www.DISHValuePledge.com.
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‘Hawaii News Now’ blocks DISH customers from CBS, NBC channels
News Release from DISH Network
ENGLEWOOD, Colo., Aug. 1, 2013 – Despite steady efforts by DISH to negotiate a new deal with Raycom Media, DISH customers in Honolulu learned this morning that Raycom has blocked access to its “Hawaii News Now” CBS- and NBC-affiliated channels (KGMB Channel 9 and KHNL Channel 13) unless DISH agrees to pay a massive price increase. DISH (NASDAQ: DISH) has offered to pay the same rates as its primary competitors for the same programming, but Raycom still refuses to sign a contract.
“We are ready to listen to a fair proposal from Raycom to bring this impasse to a swift end,” said Sruta Vootukuru, DISH director of programming. “Unfortunately, the broadcaster has not been willing to pursue an agreement that would have avoided this disruption of service to our customers and the Raycom viewers. DISH has offered to pay Raycom the same rates as our primary competitors; yet Raycom has stalled negotiations, refusing to accept that fair offer. DISH has negotiated hundreds of local retransmission agreements and on behalf of customers, we hope Raycom will soon agree to terms in line with market standards.”
Montgomery, Ala.-based broadcaster Raycom Media blocked DISH customers in 36 markets (including Honolulu) from accessing various local television channels. At this time, Raycom has refused DISH the legal right to carry its programming unless DISH pays more than four times what it pays now.
The action by Raycom also affects DISH customers’ ability to receive the MyNetworkTV K5 (Channel 5, KFVE).
The action affects viewers of various ABC, CBS, Fox and NBC-affiliated stations in the following markets: Cleveland, Ohio (CBS); Panama City, Fla. (Fox); Montgomery, Ala. (NBC); Knoxville, Tenn. (Fox); Savannah, Ga. (CBS); Toledo, Ohio (CBS, Fox); Columbus, Ga. (ABC); Richmond-Petersburg, Va. (NBC); Cincinnati, Ohio (Fox); Jonesboro, Ark. (ABC); Tyler-Longview, Texas (ABC); Biloxi-Gulfport, Miss. (ABC); Paducah, Ky. (CBS); Honolulu, Hawaii (CBS and NBC); Tucson, Ariz (CBS); Shreveport, La. (CBS); Baton Rouge, La. (CBS); Charlotte, N.C. (CBS); Charleston, S.C. (CBS); Ottumwa-Kirksville, Mo. (Fox); Birmingham, Ala. (Fox); Dothan, Ala. (Fox); West Palm Beach, Fla. (Fox); Augusta, Ga. (Fox); Lubbock, Texas (NBC); Lake Charles, La. (NBC); Huntsville-Decatur, Ala. (NBC); Albany, Ga. (NBC); Louisville, Ky. (NBC); Hattiesburg-Laurel, Miss. (NBC); Wilmington, N.C. (NBC and Fox); Evansville, Ind. (NBC); Columbia, S.C. (NBC); Jackson, Miss. (NBC); Florence-Myrtle Beach, Fla. (NBC); and Memphis, Tenn. (NBC).
Also affected are various CW and MyNetworkTV channels in five markets: Baton Rouge, La.; Cleveland, Ohio; Honolulu, Hawaii; Paducah, Ky.; and Richmond-Petersburg, Va.
Last year, broadcasting companies across the country blacked out 91 markets on various pay-TV companies at various times; and an industry watchdog group, the American Television Alliance, has called for the U.S. Congress to “revamp the out-of-date rules” that favor those blackouts.
To learn more about DISH’s negotiations with Raycom, visit www.DISHValuePledge.com.
About DISH
DISH Network Corporation (NASDAQ: DISH), through its subsidiary DISH Network L.L.C., provides approximately 14.092 million satellite TV customers, as of March 31, 2013, with the highest quality programming and technology with the most choices at the best value, including HD Free for Life®. Subscribers enjoy the largest high definition line-up with more than 200 national HD channels, the most international channels, and award-winning HD and DVR technology. DISH Network Corporation's subsidiary, Blockbuster L.L.C., delivers family entertainment to millions of customers around the world. DISH Network Corporation is a Fortune 200 company. Visit www.dish.com.
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