DISH Pushes HD Feeds/DTV Transition Issues

[Gregg Lengling]

Last week, EchoStar took its crusade for satellite-delivered national high-def network feeds to the Federal Communications Commission, asking the agency to consider its proposal to allow HD signals into markets that don't have digital TV capabilities.

In a letter sent to FCC Chairman Michael Powell, attorneys for EchoStar asked the commission to require all network stations that have not constructed digital TV facilities to grant waiver requests that would allow consumers in the relevant DMA to receive an HD feed of the network in question via satellite. The company also asked that all networks that have failed to replicate analog Grade B contours to grant waivers to households predicted as served by the local station TV signal but outside the station's community of license.

EchoStar said the two moves would help the nation's transition to digital TV and ensure the conversion from analog to digital television is received "by as many consumers as possible."

The company added, "The commission's support of distant network HDTV service through exercise of its conditioning authority will ensure that the progress of the digital transition is not halted by holdout stations. Consumers who would otherwise be left in the dark will have access via satellite to the mesmerizing video quality that HDTV brings, which in turn will encourage the purchase of DTV sets and other digital equipment."

[Gregg Lengling]

EchoStar CEO Charles Ergen was not optimistic about DISH Network keeping Viacom networks and CBS owned-and-operated channels in certain markets on the satellite TV service, telling viewers of his monthly "Charlie Chat" Monday the programming was set to come down at midnight last night.

And late in the evening, EchoStar said it was left with no choice other than to remove Viacom's owned-and-operated CBS stations and its nationally distributed cable/satellite channels as of midnight Pacific Time. EchoStar made the announcement about the channels going dark at 12:45 a.m. Eastern Tuesday/10:45 p.m. Mountain Time Monday.

During his chat, Ergen said repeatedly the channels "are coming down" since Viacom "refuses to be reasonable" about continued carriage of the programming. "We really have no choice," he said. "It's pretty hard to believe."

In addition to the O&O CBS channels, Viacom networks affected by the programming carriage skirmish include MTV, Nickelodeon, Noggin and VH1, among others. A temporary restraining order issued by a federal court in California keeping Viacom networks on DISH Network expired late last night.

The "Charlie Chat" program contained televised graphics criticizing Viacom, suggesting the programmer wanted $200 million in additional fees and $350 million for channels considered as having low viewership, although the graphics didn't offer specifics. Another graphic said "Viacom refuses to be reasonable."

EchoStar said it would provide a $1 monthly credit to DISH Network customers who lose CBS programming in the following markets with CBS O&O stations: Austin, Boston, Baltimore, Chicago, Dallas-Ft. Worth, Denver, Detroit, Green Bay, Wis., Miami-Ft. Lauderdale, Minneapolis, Los Angeles, New York, Pittsburgh, Philadelphia, Salt Lake City and San Francisco.

Customers who had been receiving Viacom's cable/satellite channels on America's Top 60, America's Top 120, America's Top 180, America's Everything Pak, and DISH Latino Max will also receive a $1 monthly credit while the channels are unavailable.

In its statement, EchoStar said Viacom used tactics to demand a re-negotiation of current agreements on other Viacom channels, allowing Viacom to require carriage and higher rates on those channels. "Our goal is to remain the best value for our customers for the lowest price," said Ergen. "To do this, we need fair contracts with competitive pricing that allow DISH Network to select the channels most compatible with the interests of our customers."

Two hours before "Charlie Chat," a MTV Networks spokesperson reiterated the company's stand on the negotiations and EchoStar's opinion on the matter.

The company said while EchoStar has recently raised some rates, all Viacom is asking for is less than an additional 6 cents a month per subscriber for the channels in question. The spokesperson also pointed out that more than 20 percent of U.S. viewers watch Viacom networks, and Viacom networks cost EchoStar less than 5 percent of what the satellite TV company generates from the average customer.

For more information on the loss of Viacom channels, viewers can check: http://www.dishnetwork.com/programming.