Dish Network & Viacom Settle Their Differences
weshart writes "I haven't yet seen anyone mention the fact that CBS and other Viacom channels are back on DishNetwork. They've been unavailable for the past day and a half, as was reported earlier. No word on the details of the agreement; and the DishNetwork announcement doesn't say anything about whether or not they'll be raising their rates."
Just in time to see Rupert get kicked off survivor allstars
"It's so convenient to have a system where everyone is a criminal" - A. Hitler
It would be nice to see Dish stand up to Viacom and leave them out of the most basic package. I believe it is only around $1 for the programming but I don't like the fact that Viacom thinks that they can just raise their rates arbitrarily and remain in basic packages.
Besides, MTV is evil.
Life is the leading cause of death in America.
I was worried I might miss some groundbreaking television like yet another reality show.
settle their differences. They rely on each other too much.
It's just a darned shame they had to wage their petty little feud on our TV screens. Like little children...
--
I'm robSlimo, the username is a
product of frustration after losing the pwd to RatOmeter.
CNBC basically described the situation as Echostar caving in to Viacom's demands for a $.72/year fee hike.
Looks like content is king.
I'm a Dish Network customer, and while I'm disappointed that I could lose Comedy Central, I know where to place my anger. Dish Network seems to be the only provider that goes to any effort at all to keep rates down. Viacom is trying to frustrate that goal by forcing Echostar to add yet another damn channel (Nicktoons) and raise provider rates on channels that are already one-third (or more, counting overnight "paid programming") commercials. Those costs don't get paid by cable/satellite providers - they're paid by customers who get the costs passed on to them.
Here's a few things we do know about the deal:
- One of the reported sources of conflict was Viacom's demand that Dish add the new Nicktoons network into their lowest base package, America's top 60. That didn't happen. Instead, the network will be added to one of Dish's more obscure packages, America's Top 180.
- The three notable Viacom-owned networks that weren't deleted from Dish Network, namely TV Land, SpikeTV and CMT had contracts that expired at a different time, and Viacom wanted those three networks to be tied to expire at the same time as the rest of Viacom's channels. Apparently, those three networks have had their contracts extended as part of this deal. No official statement on when they now expire, but I think we can all assume the next time things expire, everything will all expire together.
- Echostar had a pretty good anti-trust lawsuit working against claiming that the tactic of withholding the popular networks to force the purchase of unpopular networks is illegal because it's using a monopoly product (copyrighted content) to force the purchase of another product. If Echostar had won, this would send a shockwave through the industry because every content provider does this to every signal distributor. However, we'll never know the result of this suit because this deal agrees to dismiss all pending litigation between both companies.
- Every Dish Network Subscriber will recieve a $1 credit on their next bill, and those who also subscribe to a locals package that lost their CBS station will get a second $1 credit on their next bill as well. These will not be pro-rated down to pennies because the outage only lasted 36 hours. In addition, all Dish Network subscribers will get a coupon for a free pay per view movie, which is worth $3.99. The cash credits will cost the company at least $15 million, and allowing for the fact that some of the coupons will be unused the PPV movie offer should cost the company about $10-15 million. Ironic, because $25-30 million is about the total price increase Viacom was seeking.
Give a hand, not a hand-out.
Great.
So who lost?. Us. We, the consumers, lost. i really do not like this new ease at which the people are pushed aside and ignored so easily. It's really discouraging. The bickering spilled over into ugly text on the screens and then black bars over the ugly text. Who lost? Us. We lost. How many people are *actually* going to switch services? Not many.
No? Oh yes my friend, very few will. Why? Because of the hit they will take from "ducking out early" on the contract or a hit on credit for giving the old providers the finger. Not many people are willing to pay off the rest of their contract *and* start paying a new one just to switch service over this.
Lesson to the providers? We can do whatever the fuck we want (just don't piss off the FCC)...the consumers are too locked in and/or lazy to raise hell on us.
Sad. Very, very sad.
Too Britney, Justin, P. Diddy and all, I say, "Foo"
S'cuse me while I go frolic naked in the periwinkle. Woo!
A feeling of having made the same mistake before: Deja Foobar
I think ALL of us understand this... It's what makes it entertaining. Was Seinfeld funny? How about George Costanza? I sure think he was funny because he was always cheated, humilated, and in general being screwed with.
After a few nights of "Off line - Press Info" on a host of Viacom-owned channels in my lineup, I've realized how little I cared for those channels anyway. I almost never watched VH1 or Nickelodeon or CBS, but I kept them in my channel list on the off chance a decent show popped up.
Now, I think I can safely remove them from my favorites list and reduce the scrolling in the guide between useful channels.
There's nothing like being deprived of something to learn how little you needed it in the first place.
It doesn't hurt to be nice.
Viacom, I explained, wants Dish to buy a whole package of stations, even though Dish thinks some of the channels aren't worth it. Dish wants to pick and choose the stations they buy.
Fair enough. Except I realized that when I signed up for Dish, I also thought some of the channels aren't worth paying for. But in this case, Dish sees things differently:Apparently, Dish wants it both ways. Packages are a great idea when Dish forces them on me, but not acceptable when Viacom forces them on them.
The aforementioned 8-year-old got it right: "They're just fighting like 3-year-olds over a toy, aren't they?" And picking which side to root for is about as silly.
Stressed? Me? Of course not. Stress is what a rubber band feels before it breaks, silly.
Just going through the pain of 2 days without Comedy Central and CBS have left a sour taste in my mouth. I was seriously considering upgrading my dish setup to include the new 921 DVR, but I'm upset with both Charlie and Viacom. Viacom doesn't directly get my money, but Charlie does... I ain't paying him $900 for a piece of hardware.
I was 1/2 tempted to pull the trigger on VOOM, but they don't carryTechTV, nor offer a PVR device.
Instead of watching Letterman the other night, I started reconsidering my options... Comcast does not yet have HDTV cable in my area. I have 4 TVs (1 HD and 4 standard), and I absolutely require the crack that is TechTV _and_ a PVR now that I've sampled the both of them. What's a geek to do? I currently use a HTPC to pull in local channels over the air, but CBS only comes in at around 50% signal strength (WBBM in Chicago Fiasco.) It would be great to get DVR, HD/Standard Def, and program guide integration so I have a wife-proof solution. Anyone else go through these pains?
DirecTV seems like an option, especially if I pick up the DirecTiVO with DVD recorder, and maybe tack up an HD reciever... but that sounds like it will cost me a bit of coin as well.
I was just about to go crazy snapping up CHEAP E* systems from pissed Dish customers as they switch, then sell them back to them later after this worked out..
I had figured on a ~30 day window. So much for getting rich quick..
I don't have Dish Network, I have basic cable, and I got all these messages scrolling along the bottom of the screen urging me to call Dish networks to harrass them about some I don't give a flying #%$#$^^&&*! about, and distracting me from my TV watching for days. Just made me change channels, not what they wanted I'm sure, or had any way of tracking.
That's gotta fit into your schema somewhere
Maybe it's time for a provider to try something new. Sure have the basic-plus-premium packages, but also offer total ala carte programming; just pick the specific channels you want. Maybe offer a /. package: sci-fi, techtv. plyby....what else does a /.'er need? Obviously the content rpvoders such as Viacom want to cram all their other useless channels down your throat, but it would be a interesting idea. Just watch hbo, cbs, fox, and espn , just pay for those channels.
The sat/cable providers talk about channels costing the consumer "pennies per day", but what is the real cost? How many channels does the consumer really watch and for how long a period. I wouldn't be surprised if it really cost the consumer $10 an episode to just watch Trippin the Rift, given all the other programming they are paying for an not watching. Bah
"Look Lois, the two symbols of the Republican Party: an elephant, and a fat white guy who is threatened by change."
Now for the next week Dish Network should scroll the message "Thi$ i$ a VIACOM $tation"
Here we have government mandated channels that nobody wants. In order to carry the costs, they are bundled with other channels.
I'm sure the same is true in many other places.
You think that the cable tv industry doesn't pull this kind of thing all the time? In order to get the same number of channels that I get with my current DirecTV system, I would have had to pay Comcast cable over $100 a month for their digital package, while DirecTV has more channels at half the price.
If anyone, the blame more likely rests on Viacom who will just assume that all cable/satellite companies should swoon at their feet for the chance to carry MTV and the rest of their garbage.
If you start getting the government involved in regulating something, you're going to end up with problems. Calling for regulation over losing VH1 classics for a day and a half is pretty stupid anyway.
slashdot, news for crazed liberal socialist zealots
There was a time that I wanted the sci-fi channel, but my local cableco wouldn't carry it. It took alot of navigation through their staff to get an honest answer, but it was basicly due to the fact that they them selves couldn't just buy one channel off the link, but they had to get also get a package which included things like bravo. It took a year or so of people like my self sending letters to the cable company basicly saying, "look, we are willing to pay extra for these channels you don't carry, what's the problem". It was the digital age after all, all we need do is phone up a special phone number and poof, we got the channels we've been asking for.
I see this as being a very much diffrent case. Sci-Fi may not be worth extra bucks, but Bravo and IFC on the other hand are worth extra bucks. This is also a diffrent case because we the consumer made it clear we were willing to pay for something extra.
There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
No? Oh yes my friend, very few will.
Unfortunately there were enough people switching in the span of a day to warrant news articles across the country (check Google News yesterday for 'Viacom Dish Network') stating that cable companies are/were getting an influx of cable orders from people jumping off Dish. In some cases, these people will have to wait up to a week for cable service because of the demand.
I'm sure most of these 'jumpers' did not break their contract because it wouldn't be worth it. Rather, their contract was up already and they needed their Nickelodeon for little Timmy (age 3-4) because he won't go to bed until he watches his Spongebob Squarepants or Dora the Explorer. One day was too much to take after his screaming fit (or they wanted to prevent that fit if possible).
Sadly, now they're just stuck in the position of paying more for cable because they're probably too proud (or frightened) to go back to Dish. I feel even more pity for the few fools who jumped into a DirecTV contract within that 36 hours' time.
...and that's the way the cookie crumbles.
Just like everyone has his or her own corner of the Internet, is everyone trying to get his or her own little entertainment channel going? And are they expecting to be able to use the cable/dish companies to reach into the consumers' pocketbooks and siphon out money?
The cable and dish companies have monthly price points at which they market their offerings. They know that Grandpa Joe Innercity is just fine with local analog basic service for $11.99. Bob and Mary Suburban are willing to pay $44.99 to get ESPN and the Home and Garden Network in the standard package. Tom and Bridget Twohourcommuters will pay $79.00 to get movies. And of course, there is always a market for pr0n and sp0rts, for which some people will pay extra.
If every channel is demanding $1.00-$2.00 to get into the standard analog package and the provider needs to make money, then consumers are looking at $200 per month, which is an oppressive burden on the median income.
In Minneapolis/St. Paul, Victory Sports is the sole carrier of Minnesota Twins Major League baseball. None of the cable companies have even stepped to the bargaining table, as the $2.30 per month demanded by the channel is too high a price.
http://www.startribune.com/stories/465/4316582.htm l
Victory Sports and Viacom are both taking the stand that consumers are going to scream for these channels on their service. The cable/dish companies are going to rightly state that it will cost...A LOT. Then we will see where the screaming goes. In the meantime, to watch CSI Miami on CBS, I get 39 minutes of show and 21 minutes of commercials. The credits even get squashed as they roll by during the local news lead-in.
Have you Meta Moderated t
It happens every year. They save the final few episodes for late-April/May when the season ends, so they'll get the highest ratings during the May sweeps period. Most networks do it.
I don't think anyone in their right mind thought that Dish could win this, anyhow. The timing couldn't have been worse, with the NCAA tournament and all. As much as I hate their guts, there was no way Viacom was gonna blink first.
Mind you, I've not been unhappy with Dish over the four (IIRC) years we've had them: they beat the wireless cable we had before, hands down. However, I do think they sometimes try to pull the wool over their customers' eyes. Of course, that seems to be S.O.P. for all media companies these days, and none of it excuses Viacom from what they did.
From the Dish Network statement:
One of the things I figured out over the last two days is that they actually use creative tactics to be able to claim lower prices than DirecTV. Take the Dish 120 channel package versus the DirecTV 125 channel package, for instance: $34.99 vs. 36.99, respectively, BUT (and this is a big "but") to get local channels you have to pay Dish $5.99 a month more. DirecTV includes those channels for just $3. Add that up, and suddenly Dish costs just one cent less for five fewer channels. I'm pretty sure the only thing keeping us with Dish right now is that DirecTV doesn't carry our locals yet.
Yes, you've got it exactly right. I work for a (not-to-be-named-top-tier) cable company. It is simply not possible for us to offer channels on an individual basis because of the media conglomerates, like Viacom, forcing us to offer their channels in all-or-none blocks. The best we can really do is three tiers: (1) basic cable, which is the local networks which are (usually) independently owned, (2) expanded basic, which has those plus the aforementioned blocks from the various conglomerates, and (3) digital, which has the other channels plus all the REALLY crappy ones that we were able to negotiate out of expanded basic, plus various indepdendent networks. It's really quite ridiculous. Every time we renegotiate a deal, there are always a bunch of crap channels that we end up having to add, which nobody watches and which force us to raise rates. Believe me, nobody would like total a la carte programming more than the cable companies--our profits would increase tremendously if we could sell the networks individually, at a reasonable profit, rather than taking a tiny profit on package deal for a dozen crap networks. We've gotten LOTS of feedback over the years--there are MANY customers who would love to pay $40/month for 40 individually selected channels over $100/month for 200 forced channels. And we would turn a much higher profit in the $40/month case. But it's simply not possible, due to precisely the reason you mentioned.
I haven't yet seen anyone mention the fact that CBS and other Viacom channels are back on DishNetwork
It might be because most people weren't missing much...
"Power corrupts. PowerPoint corrupts absolutely."
Fortunately their biggest market niche is the low-end tier for not a lot of money and they were able to successfully defend that market. Being a subscriber to that tier, I'm glad this is the outcome (and I got a free movie out of the deal!).
...and that's the way the cookie crumbles.
I complained to dish and Viacom by email, warning dish that I would cancel the service if those channels were not restored (I don't really care who is to blame).
I got a response quickly from an actual person at Dish (I was impressed by this) but not from Viacom. The letter was apologetic, and directed towards my particular concerns, but suggested I voice my displeasure to Viacom as well; this I had already done. Today after the channels were restored I received this dish form letter, which you'll notice does not address price hikes (or a lack thereof):
Dear Loyal DISH Network Customer,
I am very pleased to announce that we've successfully reached a long-term agreement with Viacom to provide you with CBS and MTV Networks including MTV, Comedy Central, and Nickelodeon. I am happy to say that this agreement will allow us to continue to provide you the lowest all-digital price everyday.
I understand that it has been a difficult 36 hours to be without these popular channels. We appreciate your patience, your support for DISH Network and your continued business.
As promised, you will receive a credit on your next billing statement. In addition, we would like to thank you for all of your support by sending you a free DISH On Demand Pay-Per-View coupon that will allow you to view upcoming hits like "Cat in the Hat" and "School of Rock." The coupon will arrive in your April billing statement. Enjoy a movie on us.
Everyone at DISH Network will continue to fight to provide the best possible programming and services at the lowest possible price, every day.
Thank you for your loyalty and thank you for being a DISH Network customer.
Charlie Ergen
CEO
DISH Network
Ok, I've got to step in here... If you listen to Viacom, it was 6 cents, If you listen to Echostar, it is way more than that. It was orginally going to be a 7 percent raise per year for 5 years. The current contract was for something like 200 million dollars. You do the math. Also, all of the channels do not cost the same. MTV and MTV2 are basiclly free b/c the videos are provided to Viacom for free, while Nick and CBS cost a great deal more to run, thus those costs are higher.
Ah, the last peanut -- overflowing with the oil and salt of its departed brothers. -Homer
As pointed out on the thread that informed Slashdotters about the takedown, Dish didn't have to give any break (as per customer agreement), but chose to, as a sign of good faith. 9 million+ subscribers, cost to Dish $9 million plus. In addition in the next bill (or if you don't receive a bill, in a seperate mailing) You will receive a PPV coupon for a free PPV movie. Cost $3.99 to every subscriber who was affected (that comes out to nearly $36 Million) Dish took a $45 milllion hit on this. The prices will not go up. Dish network is still cheaper than DirecTv, and the price increase is less that DirecTv had earlier this year, and a lot less than my cable company announced after being held up by the same company over ESPN.
In addition VIACOM's action by dragging this to people on cable and every Viacom channel on every cable system and even on the competition was about as sleazy business practice I've ever seen. From what I understand both sides gave a little.
In this whole scenario there were no winners,only losers, regardless of which side you were on.