By Joe Flint And Shalini Ramachandran
Time Warner Inc. and satellite TV provider Dish Network Corp.
have come to terms on a new distribution pact that includes an
online offering of HBO, according to people familiar with the
matter.
The two companies negotiated through Tuesday evening, past the
deadline of their current short-term agreement, to wrap up a deal
that will keep Time Warner's Turner Broadcasting channels such as
TBS, TNT and truTV in Dish customers' homes.
The deal includes a way to subscribe to HBO through Sling TV,
Dish's Web TV service. A person familiar with the matter said Dish
is unlikely to be a distributor at the launch of HBO Now, the
standalone app, although Dish does have the right to do so as part
of the deal.
Last fall, several of Turner's channels went dark on Dish's
service after talks collapsed on the new contract, which meant
Cartoon Network, CNN, HLN and other channels weren't accessible in
about 14 million U.S. homes. The two sides then reached a temporary
accord that restored the channels.
The new agreement means Dish subscribers aren't in danger of
being blacked out from watching this Saturday's NCAA basketball
tournament Final Four games, which air on TBS with team-specific
telecasts on truTV and TNT.
Time Warner has pledged to investors that it will secure higher
fees from cable and satellite TV providers, one of the many
pressures facing the pay-TV industry of late. Pay-TV providers say
that rising programming costs lead to more expensive cable bills at
a time when more customers are dropping traditional TV packages and
opting for cheaper online video services.
Keach Hagey contributed to this article.
Write to Joe Flint at joe.flint@wsj.com and Shalini Ramachandran
at shalini.ramachandran@wsj.com
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