TEGNA Blacks Out DISH Customers in 38 Markets
October 09 2015 - 10:11PM
Business Wire
- TEGNA rejects DISH offer to extend
contract, including retroactive 'true-up' for new rates, which
would keep local channels up for benefit of consumers while
negotiations continue
- TEGNA turns back on public interest
obligations – holds local viewers hostage to create 'deal
leverage'
- DISH advocates for FCC and Congress to
put an end to broadcaster blackouts
Despite DISH’s offer to extend contract negotiations, tonight
TEGNA Inc. (formerly Gannett Co., Inc.) has blacked out DISH
customers’ access to its local channels in 38 markets across 33
states and the District of Columbia. The media conglomerate has
used the move to gain deal leverage as it seeks above-market rate
increases double the current DISH rate.
DISH Network L.L.C. is a wholly-owned subsidiary of DISH Network
Corporation (NASDAQ: DISH).
“With DISH willing to grant an extension and a retroactive true
up on rates, TEGNA had nothing to lose and consumers had everything
to gain by leaving the channels up,” said Warren Schlichting, DISH
senior vice president of programming. “Instead, TEGNA chose to turn
its back on its public interest obligations and use innocent
consumers as bargaining chips.”
DISH and TEGNA had been making steady progress in their recent
negotiations, and DISH was hopeful that they would come to a mutual
agreement to renew carriage of the TEGNA local stations. In that
spirit, DISH offered a short-term contract extension to TEGNA that
would include a retroactive true-up when new rates were agreed
upon, and would preserve the ability of DISH customers to access
the TEGNA local stations while negotiations continued. The true-up
would ensure that TEGNA was made whole at the new rates for the
period of any contract extension.
“We are actively working to negotiate an agreement that promptly
returns this content to DISH's programming lineup,” added
Schlichting.
Need for Retransmission Consent Reform
“TEGNA’s decision to cut ties with DISH customers is a prime
example of why Washington needs to stand up for consumers and end
local channel blackouts,” said R. Stanton Dodge, DISH executive
vice president and general counsel. “Broadcasters like TEGNA use
their in-market monopoly power to put profits ahead of the public
interests they are supposed to serve.”
Broadcasters currently prevent pay-TV companies from temporarily
substituting an out-of-market station during a local broadcaster
blackout. This leaves consumers in the dark and leaves pay-TV
companies powerless to serve their customers.
Dodge continued: “Actions like these are precisely the reason
that Congress has mandated, and the FCC has started, a formal
process to investigate negotiating tactics that use innocent
consumers as bargaining chips.”
The Federal Communications Commission (FCC) issued a Notice of
Proposed Rulemaking on September 2, 2015. Read the NPRM here:
http://transition.fcc.gov/Daily_Releases/Daily_Business/2015/db0902/FCC-15-109A1.pdf
Along with other pay-TV companies and public interest groups
that form the American Television Alliance (ATVA), DISH has asked
the FCC to consider these and other tactics as violating “good
faith” negotiations.
Read an ATVA Ex Parte filed with the FCC on September 2, 2015
here: http://apps.fcc.gov/ecfs/document/view?id=60001223881
Rising Retransmission Rates
Each year, the cost to carry local broadcast stations rises far
beyond the rate of inflation, leading to blackouts across the
country that affect millions of subscribers of various pay-TV
companies. According to SNL Kagan, a leading source on the media
industry, broadcast fees burdening pay-TV consumers were as low as
$215 million in 2006, soared to $4.9 billion in 2014 and are
expected to more than double to reach $10.3 billion in 2021.
DISH customers can visit DISHPromise.com for more information
and to ask the FCC and Congress to end TV blackouts.
For a list of affected stations, visit
https://dishnetwork.newshq.businesswire.com/document-library/tegna-station-list.
About DISH
DISH Network Corp. (NASDAQ: DISH), through its subsidiaries,
provides approximately 13.932 million pay-TV subscribers, as of
June 30, 2015, with the highest-quality programming and technology
with the most choices at the best value. Subscribers enjoy a 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 is a Fortune 250 company.
Visit www.dish.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20151009006006/en/
DISHJohn Hall, 720-514-5351news@dish.com
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