Dish subscribers get their Viacom channels after dispute settled |
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By Michael McCarthy, USA TODAY
Dish Network subscribers got back popular Viacom channels, including Nickelodeon and MTV, early Thursday after the programmer and satellite broadcaster EchoStar Communications (DISH) settled their dispute. Subscribers in some cities were also without CBS broadcasts from Viacom-owned (VIAB) stations.
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Slideshow: Viacom-EchoStar Dispute |
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| But this is likely not the last time consumers will see the plug pulled on favorite channels in the ongoing battle between programmers and distributors over rising costs. With giant media content companies such as Viacom aggressively raising rates and increasingly marketing their broadcast and cable networks as "all-or-nothing" packages, more conflict is inevitable, says Craig Moffett, cable analyst for Sanford C. Bernstein. Time Warner Cable yanked Walt Disney's ABC from systems for 39 hours in 2000. About 400,000 Cox Communications subscribers lost News Corp.'s Fox network for a week in January due to a battle. Cox also exchanged threats with Disney's ESPN before finally agreeing to pay more. "The disputes are getting bigger and flashier than ever," Moffett says. "The reality is these things happen all the time - but nobody cares when Outdoor Life goes off the air for 24 hours." The next likely flashpoint: DirecTV, now controlled by News Corp. Chase Carey, head of the No. 1 satellite operator, warned analysts last month that it has "a lot of work to do" to bring down programming costs. EchoStar blinked first in the latest showdown, says analyst John Mansell of Kagan Research. As part of an estimated five-year deal, EchoStar gave in on using one of its limited channel slots to carry Viacom's Nicktoons network. But it will pay Viacom about 6 cents a month more per subscriber, a 4% to 5% increase. According to Moffett, that is less than the double-digit increases EchoStar CEO Charlie Ergen said Viacom was demanding. The two sides also settled a lawsuit filed by EchoStar over Viacom's Nicktoons demand. Ergen, on a conference call, predicted more showdowns for EchoStar: "We get more heat for raising prices than we do for taking down channels." Viacom President Mel Karmazin issued a statement apologizing to viewers for "the disruption in service" and thanking them for "their patience and support." Meanwhile, EchoStar announced it would delay by about 15 days its earnings report, due out Thursday, while it tried to conclude talks with the Securities and Exchange Commission ( news - web sites ) over an accounting issue that may require a restatement upward of its 2001 results. |