DISH Petitions FCC to Deny Sinclair-Tribune Merger
August 07 2017 - 2:30PM
Business Wire
Citing substantial harm to competition and consumers, DISH
Network L.L.C. petitioned the Federal Communications Commission
(FCC) to deny the proposed acquisition of Tribune Media Company by
Sinclair Broadcast Group, Inc. The nearly 200-page petition to deny
is available here.
Among other things, the merger threatens the following
harms:
- Unprecedented Size: It would
turn Sinclair into the nation’s largest broadcast conglomerate and
lead to higher prices, more station blackouts, less choice, and
less local news for millions of consumers. The resulting company
(“New Sinclair”) would:
- Own over 500 television stations
(accounting for individual multicast feeds), including 117 stations
affiliated with a “Big-4” network;
- Reach 72% of American households;
- Own television stations in 108 of the
country’s 210 television markets, including 40 out of the top 50
designated market areas (“DMAs”); and
- Own more than one station in 37
markets. (p. 2)
- Higher Prices for Consumers: A
detailed economic analysis concludes that the increased broadcast
group size and number of local market duopolies that will result
from this transaction will empower New Sinclair to demand higher
prices with impunity – price increases that will ultimately be
borne by the American consumer. The key findings of DISH’s experts
are as follows:
- Other things being equal, the larger
the broadcast station group, the higher the retransmission fee paid
by the MVPD;
- Other things being equal, the more
local station duopolies controlled by a broadcast group, the higher
the retransmission fee paid by the MVPD;
- The blackout of two stations in a local
market costs MVPDs greater customer losses than the loss of one
station, and is a more effective weapon for the broadcaster to
threaten distributors into capitulation;
- New Sinclair will likely demand and
achieve greater price increases than each of Sinclair and Tribune
standing alone;
- Part of these price increases would
likely be passed through by DISH and other distributors to
consumers; and
- One of the key factors contributing to
rising retransmission fees is broadcaster consolidation. The
Sinclair/Tribune merger would likely exacerbate the trend towards
higher retransmission fees. (p. 3)
- Harms to Localism: Sinclair’s
practices – which Sinclair proposes to export to the Tribune
stations – amount to a systematic assault against local content.
(p. 6) Sinclair has a long record of buying a station, hollowing
out its talent, and replacing its locally-produced programming with
centrally produced content. A list compiled by DISH details a
practice of brutal job and cost cuts at no fewer than 27
Sinclair-owned stations. (p. 7)
- The Transaction Violates FCC
Rules: As the media ownership rules stand, the Applicants
propose a transaction that violates the Commission’s rules… The
Applicants should refile their Application accompanied by a waiver
request or a divestiture commitment. (p. 9)
A copy of the full petition to deny is available here:
https://dishnetwork.newshq.businesswire.com/sites/dishnetwork.newshq.businesswire.com/files/doc_library/file/DISH_Petition_to_Deny_Sinclair-Tribune_Merger.pdf
About DISH
DISH Network Corp. (NASDAQ:DISH), through its subsidiaries,
provides approximately 13.332 million pay-TV subscribers, as of
June 30, 2017, with the highest-quality programming and technology
with the most choices at the best value. DISH offers 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 200 company.
Visit www.dish.com.
Subscribe to DISH email
alerts: http://about.dish.com/alerts
Follow @DISHNews on
Twitter: http://www.twitter.com/DISHNews
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170807005829/en/
DISH Network Corp.Karen Modlin,
303-723-1850Karen.Modlin@dish.com
DISH Network (NASDAQ:DISH)
Historical Stock Chart
From Mar 2024 to Apr 2024
DISH Network (NASDAQ:DISH)
Historical Stock Chart
From Apr 2023 to Apr 2024