ENGLEWOOD, Colo., Sept. 26, 2019 /PRNewswire/ -- DISH today
reported that Fox Corporation blocked DISH customers' access to its
local channels in 17 markets across 23 states and the District of Columbia (the full list of
affected stations can be viewed here). Fox has also removed cable
networks FS1, FS2, Big 10 Network, Fox Soccer Plus and Fox
Deportes.
Fox is demanding a double-digit percentage rate increase for
continued carriage of its local channels. Fox is also attempting to
"force bundle" its local channels and unrelated cable networks to
get more money and gain negotiating leverage.
At its May investor day, Fox executives promoted their plan to
increase retransmission revenue by 62 percent, to $2.6 billion by 2022.
"Taken together, Fox's actions are profoundly anti-consumer,"
said Andy LeCuyer, DISH senior vice
president of Programming. "Fox is raising prices and turning
its back on its public obligation to provide channels to consumers
for free. It's clear that Fox cares more about padding its bottom
line than serving its viewers."
"To add insult to injury, Fox pulled its channels right as
viewers head into the heart of the NFL and college football
season," continued LeCuyer. "We ask Fox to stop punishing its own
viewers so we can focus on reaching a fair deal."
Affected DISH customers can view NFL games using an over-the-air
antenna or stream local and most primetime games for free on mobile
phones and tablets as via the NFL App.
Consumer Choice and Forced Bundling at Issue
In addition to blacking out local stations, Fox has also blocked
DISH customers' access to its cable networks FS1, FS2, Big 10
Network, Fox Soccer Plus and Fox Deportes. Fox is attempting to get
more money by "force bundling" its unrelated cable networks and
leveraging its local channels.
"Fox is using local viewers as leverage to get more money for
unrelated channels," said LeCuyer. "We simply don't think it's fair
to use local viewers to raise rates on expensive, unrelated sports
programming."
DISH Offer of Extension, True Up Rejected
DISH and Fox had been making steady progress in their recent
negotiations, and DISH was hopeful that they would come to a mutual
agreement to renew carriage of its local stations. In that spirit,
DISH offered a short-term contract extension to Fox that would
include a retroactive true-up when new rates were agreed upon, and
would preserve the ability of DISH customers to access the Fox
stations while negotiations continued. The true-up would ensure
that Fox was made whole at the new rates for the period of any
contract extension.
"Fox had nothing to lose and consumers had everything to gain by
leaving its channels up," said LeCuyer. "Instead, Fox chose to harm
its own viewers."
DISH Offers Free Antenna Installation, Alternative Viewing
Options Available
As DISH works to reach an agreement, the company is offering
digital over-the-air antennas at no cost to customers in the
affected markets. Customers who use a digital antenna are able to
access news, sports and popular network shows from Fox, and have
the option to completely drop their local channels from their
programming package to save $12 on
their monthly bill. DISH will install an antenna for qualifying
customers in Fox markets based on the reception available at their
home.
"A digital antenna is a great experience and solution for a
growing number of customers," continued LeCuyer. "The channels
integrate seamlessly into the Hopper interface. Plus, switching to
antenna-delivered locals can unlock $144 savings annually. We want to give customers
the choice to save money."
Local station availability over the air is dependent on
geographic location and topography. Consequently, some customer
locations may not qualify for an antenna installation.
Another viewing alternative is offered by Locast, a free
nonprofit service that provides local broadcast channels over the
internet in select markets. Locast is available on connected DISH
Hopper devices. Customers can visit locast.org to learn
more.
Need for Retransmission Consent Reform
"Fox is using its mix of local and national channels against
viewers, abusing outdated laws to try to force consumers to pay
more. This greedy attempt to extort more money from our customers
is one of the main reasons we – and our industry – are asking
Congress to restore balance in the broadcaster-pay TV equation,"
said Jeff Blum, DISH senior vice
president of Public Policy and Government Affairs. "We are asking
lawmakers to reform outdated TV laws to give our customers the best
viewing experience at an affordable price – without the threat of
broadcaster blackouts."
Along with other pay-TV companies and public interest groups
that form the American Television Alliance, DISH has called for the
U.S. Congress to revamp the out-of-date laws that favor these high
fees and unnecessary blackouts.
Blum continued: "We continue to urge the FCC and Congress to
update a system that emboldens broadcasters to black out
consumers."
Rising Retransmission Rates
Each year, the cost to carry local broadcast stations rises far
beyond the rate of inflation, leading to blackouts across the
country that affect millions of subscribers of various pay-TV
companies. According to Kagan, a leading source on the media
industry, broadcast fees burdening pay-TV consumers are expected to
reach an unprecedented $16.3 billion
in 2024. These same rates, for channels available free over the
air, were as low as $215 million in
2005. With a current annual increase of as much as 40 percent, the
cost to deliver local channels is the fastest growing part of
consumers' monthly pay-TV bills.
DISH customers can visit DISHPromise.com for more
information.
About DISH Network L.L.C.
Since 1980, DISH has worked
on behalf of consumers to deliver innovation and
value. Through its subsidiaries, the company provides
television entertainment and award-winning technology to millions
of customers. DISH Network L.L.C. is a wholly owned subsidiary of
DISH Network Corporation (NASDAQ:DISH), a Fortune 250 company.
Visit www.dish.com.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/fox-blocks-millions-of-dish-customers-from-local-channels-cable-networks-300926405.html
SOURCE DISH