Dish Network Battles with Disney over High Fees for its High-Def Channels
Dish Network Battles with Disney over High Fees for its High-Def Channels
Dish Network had lost four high-definition channels owned by Walt Disney Co. when the two failed to reach an agreement on carriage fees. The dispute does not affect any other channels where the FIFA World Cup is being aired.
Walt Disney argues that Dish Network never had a deal with them to carry the HD channels in the first place. Disney cited a court ruling against Dish which confirms that the media giant did not breach any contract with regards to the distribution of the HD channels in question. While Dish is currently appealing this ruling, the TV provider says Walt Disney was asking for a steep fee increase to allow them to access the HD channels. Although Dish Network will no longer broadcast ESPNews HD, Disney Channel HD, Disney XD HD and ABC Family HD, the SD version of the four networks remains intact.
The channel blackouts will be suffered by many of Dish’s HD subscribers. Cable, media and broadcasting networks have been increasing subscriber fees to TV providers since advertising revenues have been depleting as a result of the present economic challenges and the rise of digital media costs.
Cablevision Systems Inc. (CVC) for instance, had shared its own programming disruptions due to the same clashes on carriage-fees with Scripps Networks Interactive Inc. (SNI) and Disney's ABC Broadcasting. Time Warner Cable Inc. (TWC) barely avoided a blackout from News Corp.'s (NWS, NWSA) Fox Broadcasting after a year-long negotiation.
The latest negotiation between Dish Network and Walt Disney somewhat differs from the other disputes since it involves HD channels only. The squabble impacts Dish Network especially with its recently offered HD for Life promotion as one of its satellite TV deals.
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