Unable to come to terms on a new distribution agreement, Tribune Media Co. said its 42 television stations and the WGN America cable channel had gone dark on satellite broadcaster Dish Network Corp.

Approximately 5 million Dish subscribers in 33 markets across 34 states and the District of Columbia lost access to local TV stations owned by Tribune late Sunday. About 7 million aren't receiving the WGN America network.

At issue are fees Tribune is seeking for carriage of its stations and WGN America. In a statement, Dish Network said Tribune was demanding an unreasonable price increase for its local channels, which are available free with an antenna. In addition, an increase for WGN America isn't warranted because the channel no longer carries Chicago Cubs games and its ratings are down in Dish homes, the satellite broadcaster said.

"Tribune is using local viewers as leverage to raise rates for WGN America—a channel that is in decline," said Warren Schlichting, executive vice president of programming for Dish.

Dish has offered to provide free antennas to its customers so they can receive the Tribune television stations. Tribune owns or operates 42 stations in many of the nation's biggest markets including New York, Los Angeles, Chicago and Washington, D.C. Many of its stations are affiliated with the CW Network but it also owns affiliates of CBS, ABC, NBC and Fox.

Tribune said the deal it offered Dish was the same one it has with other pay-TV distributors. "Dish refuses to reach an agreement based on fair-market value," said Tribune Media spokesman Gary Weitman.

Both companies said they were willing to extend the current agreement but neither side could even agree on terms for that.

Such fights over distribution fees have become commonplace in the television industry. Tribune has been seeking increases for WGN America as part of its plan to transition the channel from one that was highly dependent on reruns and Chicago sports to a network with lots of original programming that can compete with channels such as FX and AMC.

Write to Joe Flint at joe.flint@wsj.com

 

(END) Dow Jones Newswires

June 13, 2016 08:05 ET (12:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
CBS (NYSE:CBS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more CBS Charts.
CBS (NYSE:CBS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more CBS Charts.