Dish Network to drop CBS ?

[MikeHunt]

EchoStar Willing To Drop CBS In Dispute With Viacom -2-

By Mark Wigfield

Of DOW JONES NEWSWIRES

WASHINGTON (Dow Jones)--Echostar Communications Corp. (DISH) will drop the top-rated CBS network from its satellite television lineup rather than accede to demands of the network's owner, Viacom Inc. (VIA, VIAB), says Charles Ergen, Echostar chairman and chief executive.

"This is extortion at the highest level," Ergen told reporters Thursday following a speech sponsored by the free-market think-tank, the Progress and Freedom Foundation. "Viacom has crossed the line."

EchoStar and Viacom are in a dispute over what rate EchoStar must pay for CBS and what Viacom cable networks it must carry. Ergen said Viacom threatened to withhold the Superbowl from EchoStar in the dispute, a move that was restrained by a federal judge hearing an antitrust case brought by EchoStart against Viacom.

But the judge's restraining order expires next week, and if no agreement is reached, EchoStar must stop retransmitting CBS. Ergen said Echostar also carries 20 other Viacom channels, but is balking at Viacom's demand that it carry the Nickelodeon GAS channel.

Viacom could not be reached for immediate comment.

The dispute is over 15 major market cities where Viacom owns and operates the CBS station. In the 90 markets where the CBS affiliate is independent, EchoStar could still carry the signal.

The judge's temporary restraining order expires on Monday at midnight, after which time EchoStar would have to stop carrying the 15 stations.

The rules governing satellite's relationship with broadcasters were set by the Satellite Home Viewer Improvment Act, which expires at the end of this year. Amendments to the law in 1999 allowed satellite providers to carry local stations while restricting their ability to carry network feeds from distant stations.

Ergen is pushing for Congress to change the law this year to allow satellite providers to carry high-definition digital television broadcasts from distant television stations if the local station hasn't yet made the transition to digital service. The policy would serve viewers, he said in a letter to FCC Chairman Michael Powell released Thursday, by providing them with high-definition service while at the same time encouraging local stations to provide it.

The policy is opposed by the National Association of Broadcasters, whose member stations could lose viewers if EchoStar could carry distant high-definition stations. Such a policy change would reduce the incentive for EchoStar and its competitor DirecTV, now a unit of News Corp. (NWS), to carry local signals, the NAB says.

:shut up:

[Kooperman]

Both sides posturing....

[SamJam]

I was watching Nick at Nite last night and a message scrolled across the screen stating that dish/echostar subscribers need to fight for what they paid for. Apoparently there is a chance of them cutting The "Nick" channels as well as the MTV and VH1 channels. It sounds like Echostar/Dish are jusr digging themselves into a hole.... (anyway, DirectTv is much better IMHO). I would think this would turn many people off of using Dish....

Sam

[MikeHunt]

certainly some politics going on there.

I used to have DirectTV...had nothing but problems ...with billing... signal..etc...switched to Dish...and its been much better.

I think though they have to pay ViaCom what they ask..even though its extortion.

They have no choice, as the number of content providers is limited.

[Kooperman]

This is the way corporate politics, and the in-pocket politicians work...through slight-of-hand, deceit and misdirection. Both parties do it and it'll never be changed.

[Kooperman]

-medusa-, my point is that these people are all in bed. They don't want this language removed. The RIAA is a powerful lobbying force and they have the government backing on this. Our protests are invisible because we're only thieves, and most Americans could care less.

[Kooperman]

It takes a helluva scorecard to keep track of crooks and con artists..and that's just the way they want it. If people who work out legislation don't even know it's been altered sometimes until it's too late to change it, the public has no chance either.