WOI-TV Des Moines - still no retrans

[jeffcarp]

Well, we are nearing a month now since Dish launched Des Moines and WOI-TV is still a hold-out for retrans. Now, when you contact WOI, they have a nice canned letter concerning the issue. Basically they claim that Dish isn't negotiating in good faith, Dish picks on one station in each market, they are just a small station (cry me a river), blah, blah, blah. They can come up with as many excuses as they want, but they can't hide the fact that over 250 affiliates in over 60 DMA's have managed to reach agreements with either Dish or Directv. That fact kind of makes their excuses laughable. If you care about this issue, contact the station manager Marshall Porter at mporter@woitv.com

[Eyedox]

Many of us in the Des Moines area are quite distraught that you have not come to agreement terms with DISH Network for retransmission of your station over satellite. Your official response to the public has been that DISH network is picking on you and not playing fair with negotiations. However, I find it difficult to believe that you have been treated any differently by DISH than 60 other markets and hundreds of other stations across the US that they have dealt with. If you both state and feel that you are "just a small station" as you have said, shouldn't you be content to be carried on DISH at all with the other network affiliates?

Many of us also have problems wondering why WOI and the other local affiliates need to "double dip" in the cookie jar at all when we already have to sit through hours of commercials every day. DISH providing your signal is no different than MEDIACOM providing it thru cable. It takes precious transponder space to provide the signals to all these local networks. WOI is free OTA, so why do you want to charge DISH customers to view a free signal? As more and more people switch from cable to satellite, you will continue to lose more and more viewers to the other networks who have agreed to play ball. I am not saying that DISH is correct or WOI is correct, but figure it out and get on with it already. WOI shouldn't be relying on DISH Network to pay its electric bill. You've been doing fine without supplemental income from DISH up to now, so I don't understand what the issue is. CEDAR RAPIDS and OMAHA are being added to DISH by Jan 1, 2003 and are already uplinked.

We have also all been waiting patiently for WOI-DT to go on the air, but so far have not seen 59.1 go live. We are anxious to see WOI make their new extented deadline of 12/31/02 for that. Many of us have purchased expensive HDTVs and would like to start appreciating ABC's Alias, and 5.1 dolby digital surround and 720p. Incidentally, there are a lot of viewers like me, in fact, your station has become a topic of conversation.

[jeffcarp]

Please post any response that you get from them. I agree with you. The only way WOI is going to negotiate is from continued public pressure from their viewers.

[Eyedox]

Thank you for your response. I'll attempt to answer your questions and concerns. What I've done is answer them in a different color, following your particular statements.

Let me begin by reiterating, we continue to be most anxious to be included on Dish Network's channel line up. We have held several conversations with their people and we have had numerous conversations with our Washington attorneys in hopes of seeking swift resolution. At the end of the day, our desire is to have our signal available to as many people as is possible, in as many ways as is possible.

I stand by what I have said, "We are not being treated in the same fashion as our competitors. Furthermore, if you care to research how Dish Network conducts their business practices, you'll quickly find this is common with other markets. Emmis Boradcasting Company owns KOIN TV in Portland Oregon, a CBS affiliate in the 23rd largest market in the country. Echo Star (owner of Dish Network) conducted business in the same fashion and would not come to terms with that station for 18 months!!! That's right, 18 months. I know the people from Emmis and I assure you it was not because they were trying to "gouge" Dish Network. This was Dish Network's doing. OK, so let's bring it a little closer to home... you mention in your note to me Cedar Rapids. It's a great example to talk about right now. It might surprize you to know that Dish Network is not negotiating with KCRG TV the ABC station in that market. KCRG TV is a power-house and owned by the Cedar Rapids Gazette (Newspaper), but unfortunately is only a single station. Accordingly, this is the first time Echo Star has encountered this station. The NBC (KWWL) is part of a larger group and likely has a grandfathered clause with Dish. The CBS (KGAN) is part of a huge broadcasting group and clearly has previously negotiated with Echo Star for larger markets. The Fox in that market is now run by the same group as KGAN.

Regardless of my size, why should I let some outside company come in here and "virtually" steal my signal. People in the Des Moines market do already have the ability to view our signal over the air. We have been doing that for more than 50 years. Your ability (and also our desire) to receive our signal via cable or satellite is "ease" and not usually from necessity. I personally live 30 miles south of Des Moines. I subscribe to DirecTV. My "local" channels are received via an outside antenna, yet they feed through my satellite receiver, so I have no difference whatsoever between my "satellite" channels and my "off air" channels.

[Eyedox]

"double-dipping"
Every free over the air television station has been granted EXCLUSIVE rights to broadcast a signal in their respecitve market. In return, we give hundreds of thousands of dollars each year in "free" air time to non profit organizations, Public Service Announcements, and in community good will. Each year, there also become more choices for people to advertise (using your metaphor, the "pie" continues to get smaller). Cable now sells advertising, Satellite will soon sell commercials, Internet, direct mail, radio, newspaper, billboard, etc. If you have followed the television industry at all, you'll know that it has become increasingly difficult for stations to survive in this environment. Stations are combining resources with one another because they can't make it on their own... something that was completely unheard of 10 to 15 years ago. Now the FCC has determined that television stations must offer Digital broadcasting... costing each television station a couple of million dollars in equipment, just to get started. The government isn't helping to foot that bill and we as an industry aren't going to charge you the consumer for that bill. Keep in mind that Satellite providers and Cable providers charge you a monthly fee to receive those signals and they raise the price every time they face increased costs. ALSO, they sell advertising as well... isn't that "double dipping"? Are you suggesting that Dish and DirecTV and Cable shouldn't be charging you a monthly fee since they also sell commercials? For that matter, why does the Newspaper charge you to receive their paper, since it contains more advertisements than it does information??? I agree there is very little difference between cable and satellite, so why shouldn't satellite conduct themselves like cable???

I DON'T want to charge Dish Customers. Dish has already determined they are going to charge you $5.99 a month to receive those local signals and they have already determined they will reduce that amount by $1.00 per month for now, since ABC (WOI TV) is not among the local channels thus far.

Let me ask you this... let's presume for a minute that you have a couple of spare bedrooms in your house. The local Holiday Inn has filled up, so they come knocking on your door and those of your neighbors because they are trying to get a few extra rooms for this weekend. They agree to pay your neighbors on both sides of you and the one directly across from you "x" amount of money to use their bedroom for this weekend. Then they come to you. You agree that you have a spare bedroom that's not being used. You already own it and it won't "cost you anything" to have it used. The Holiday Inn says to you, we'd like to use that room for FREE, but we're going to charge the consumer for using it. So tell me Jason, would you let them have the room for free or would you expect to be paid the same price as what Holiday Inn was willing to pay your neighbors??? I am very curious as to your answer to this, as this is perhaps the crux of the whole thing! CEDAR RAPIDS I think I addressed this pretty well earlier... the #1 station in the market will NOT be included in the local line-up in January, simply because they are not a part of a larger group. Dish network has done deals with enough stations in the market to bring it on line and looks to be stonewalling KCRG.

Jason, as a consumer I understand the only thing you care about is getting the service. All the baggage that I've gone into is irrelevant. You want to be able to watch the programming on the satellite. I want the same thing too, and I'm hoping your good sense of reasoning will make you a bit sympathetic to our plight. I'm hoping you take your frustration and anger to DISH Network and push them to come off their plateau and treat us in the "SAME" fashion as they have our competitors... no better, and no worse. Help me, so I can help you.

I've been very long-winded and I apologize for that, but I am becoming increasingly frustrated over what I perceive a "lack of fair play". I don't appreciate being pushed around by some outside behemoth and I like even less, telling consumers like you that I can't currently give you what you so desperately desire.

I hope this clears up any mis-information and provides you with a bit more accurate perspective of what the reality of the situation is.

Thanks again for contacting us and please be sure to let me know how Dish responds to you if you contact them on our behalf.

[Eyedox]

Originally stated by Marshall Porter:
Now the FCC has determined that television stations must offer Digital broadcasting... costing each television station a couple of million dollars in equipment, just to get started. The government isn't helping to foot that bill and we as an industry aren't going to charge you the consumer for that bill.
I reminded Marshall that the FCC gave all US stations FREE frequency to use for their DIGITAL Simulcast stations, which saved stations billions collectively. So the government HAS helped out stations with the digital transistion somewhat.

[TNGTony]

Echo Star (owner of Dish Network) conducted business in the same fashion and would not come to terms with that station for 18 months!!!
HEY!!!! Dish came to terms with KOIN in Portland BEFORE Emmis bought them. They were available from the get-go. It was DirecTV, not Dish that had problems with KOIN! They are the ones that didn't have the station on the air for 18 months. Also BOTH Dish and DirecTV had problems with Emmis...

Finally Dish had problems with WTTV which I think was owned by Emmis. Within weeks of it being sold, it went on the air on Dish....

That tells me that it was Emmis that was the problem...not Dish or DirecTV!

It's a load of crap!

See ya
Tony

[Eyedox]

#1 I would submit to you the reason the FCC and Congress gave the UHF spectrum free is they recognized the only way to push the industry forward would be to go that route. Even so, the FCC has now acknowledged that for at least some smaller stations, this additional hardship may force some stations to be sold or worse yet, to go dark. I believe it is one of the major reasons the FCC is now considering relaxing ownership rules... to prevent those stations from actually going dark. They are proposing a single owner may in fact own multiple stations in a market, or Newspaper or Radio could own a Television station. By the way, personally I am against this further consolidation of our industry as I don't believe fewer voices are a benefit for you or I as a consumer, but that's an entirely different story.

Here's the real "goofy" thing with the transition to digital. Our station here in Des Moines and our one in Quad Cities, both were assigned very high UHF numbers. 58 and 59. The FCC has already stated they intend to sell the 51 to 60 spectrum to the private sector. So ultimately, we are expected to purchase a digital transmitter, antenna and transmission line, get on the air, knowing full well, that in the next few years we will need to purchase a complete set of digital equipment again, for a different channel. It's ludicrous, but that's the deal. Those are costs we as a station will have to incur and endure.

The financial ramifications of this whole transition are incredible. And, it's being rammed down everyone's throat. From the Television stations, to the cable companies, to the satellite distributors, to the electronic industry and ultimately to all of us as consumers. Now Congress is trying to propose the stations must give back the analog signal by 2006, whereas current law stipulates we don't give back the analog until digital viewership reaches 85%. With the current consumer costs, for the life of me, I can't believe 85% of the Des Moines market will have purchased digital sets by 2006. Especially with the fact that currently there are NO HD TV sets available. Yes there are HD compatible, but everyone needs a receiver as well. Oh well!

#2 Tower space. Our attorneys have a draft of a contract with American Tower in front of them. We are trying to hammer out the details as we speak. I am confident we will be on that tower, it's now down to a matter of the "language". Doubtful we will be on before the end of the year. I'm frustrated to say I doubt it will happen by Super Bowl (which is probably the single biggest reason to even have digital). Our extension with the FCC goes till the end of May. If I'm a betting man, I'd project late winter or possibly early spring before we are operational. Keep in mind, some "poor" tower crew has to haul that transmission line up the tower. How likely is that to happen in the dead of winter? Obviously, if winter stays mild as some are projecting, perhaps we'll hit air much quicker. All the equipment is here, ready to go.

#3 DirecTV We have heard nothing whatsoever from DirecTV thus far. Someone else just today also said they heard DirecTV is coming to town in 1st quarter. Likely a rumor from a dealer hoping to stall people from dumping DirecTV for Dish, but in any event, I will place a call to them in the next few days to hear definitively what their plans are.

I will likely have a Satellite icon put on our website to discuss the DISH situation and then update people on what if anything is transpiring with DirecTV. I personally have DirecTV, so I'd be thrilled to have that come to fruition.

I don't think I gave you ANY information here tonight to be happy about. Sorry for that. No DISH yet, no word on DirecTV and a further delay in digital. Now if that's not reason enough to turn to another channel, I'll never know what is. Keep your fingers crossed and hang in there with us. If you get a minute, put a bug into DISH and encourage them to work with us.

[TNGTony]

Every last syllable in that statement is irrelevant to charging Dish to carry the channel in the first place. That is the cost of doing busines. He said it himself!

See ya
Tony

[jeffcarp]

I love the tone of the message. "Tell Dish to work with us." If he thinks people are that stupid to think that Dish is 100% the problem, then he is out of touch with his viewers.

[Mark Holtz]

If I recall correctly, Dish Network and DirecTV have to provide a Point of Presence in a market to receive the TV signal, whether it be over the air, via microwave, fiber optic "TV1" line, or carrier pigeon. Dish and DirecTV then has to send that signal, ususally via high-speed data lines, to their uplink facility to be put on satellite, which, in turn, is expensive. Dish and DirecTV are probably LOSING money providing Local-Into-Local service.

In addition, Dish Network is the only provider that allows you to have just locals on their service for $5.99+$5 access fee. The access fee, however, is waived if you take at least AT50 or Dos Latino. That $10.99 is also roughly the eqiuvelent to a "lifeline" cable that many cable companies charge for "free local channels", which the cable companies receive over the air.

And, to make matters worse, if you live in a grade A or grade B contour, you cannot have a distant networks package. Under this theoredical contours, you should be able to receive a OTA signal using a regular outdoor antenna. Actual milage, however, will vary. I have a friend who lives in a solid grade A countour, but cannot receive stations OTA. Cable is unavailable, so she had to get Dish to receive Sacramento locals.

In theory, someone could challange that they could not receive WOI over the air and request a waiver. However, in all likelihood, such waivers would be turned down. In theory, testing could then be conducted at the customer's site, with the loser paying the testing costs. At this time, no agreements have been reached as to testing standards or which testing services can be used.

[Mark Holtz]

And, FWIW, here is the current listings for Sacramento. A complete list can be found at 100000 Watts (http://www.100000watts.com/tv/SAC.html). I have omitted the low-power stations (because they do not qualify for carriage), and Digital stations.

KCRA-3 (NBC, Hearst-Argyle) - Carried
KVIE-6 (PBS) - Carried as of beginning of year.
KXTV-10 (ABC, Garnnett)-Carried
kOVR-13 (CBS, Sinclair)-Carried
KUVS-19 (Univision, Univision-owned)-Carried on side satellite. National feed available with Dish and DirecTV.
KSPX-29 (PAX, Paxson Communications)-
Dish: Not carried due to agreement with Paxson Communications to carry national feed.
DirecTV: Carried.
KCSO-33 (Telemundo)-Low power station, not eligible for carriage. Telemundo substitute available through Dish and DirecTV. It is carried on the local cable system.
KTXL-40 (FOX, Tribune)-Carried
KQCA-58 (WB, Heart-Argyle, run by KCRA-3)-Carried as of first of year.
KFTL-64 (Various, Family Stations)-Carriage refused. Application for carriage was postmarked after July 1st deadline. Appeal denied by FCC because the July 1st was a absolute deadline--even if it fell on a non-business day, and the station had several months to apply for must-carry carriage.

Galavision is not broadcast, although a feed is available through local cable. Both Dish and DirecTV offer it.

TV Azteca is not broadcast in this area. Only Dish offers this channel.

Sacramento, BTW, is the #19 media market.

I also checked DirecTV's site (http://www.directv.com/DTVAPP/learn/FAQ_DTVProgramming_Local.jsp#5), and here is their answer verbatium from their site:

Q: Why do you charge for local channels and PBS? Aren't they free?
A: We charge for subscriptions to broadcast networks for many different reasons. First, we must pay a copyright fee in order to be able to distribute the service. Then, just as with any signal we carry, we incur costs associated with receiving, encoding and transmitting it with our satellite and monitoring the signal quality. Also, we don't distribute local channels via satellite in all areas of the country. Therefore, we charge separately for local channel service so only customers receiving the service have to pay for it.

[jeffcarp]

Here is the latest from Echostar on this deal:

"Michael has forwarded your email to me for a reply. Our numbers in this market for local takers have been better than expected. I understand that even the WB here out performs ABC in certain day parts. We made an offer to ABC as recently as last week, with they rejected without any change in their prior position and they have now retained counsel to assist them in negotiations. Our take rate is very strong in this market and we have offered what we believe is a reasonable fee.

Not sure when this might get resolved, but feel free to email me regarding status from time to time. We remain hopeful we will add ABC soon."