Cablevision Frets About DBS Deal

[Steve Mehs]

Last week, pay-TV competitors were some of the loudest voices at the Federal Communications Commission concerning News Corp.'s proposed takeover of DirecTV and Hughes.

Cablevision, readying its Rainbow DBS platform for launch this year, was one of those with strong opinions about the deal. In its comments, Cablevision said the proposed transaction presents an anti-competitive harm to DBS competition and its developing Rainbow DBS venture.

"Rainbow DBS is now only a fledgling rival to DirecTV and has limited spectrum compared to DirecTV, but it has the potential to become a more formidable DBS competitor quite soon," Cablevision said. "DirecTV therefore has a strong incentive to hobble Rainbow DBS."

Cablevision said News Corp.'s control of DirecTV provides the media giant with the ability to hamper the development of competition like Rainbow DBS

"The merger parties can use the power of News Corp.’s control over an important source of content, the Fox television stations, to deprive Rainbow DBS of the Fox local broadcast signals or demand excessive concessions in exchange for retransmission consent, and so raise Rainbow DBS’s costs," the company said.

From SkyReport (http://www.skyreport.com) (Used with Permission)

[Jacob S]

Rainbow DBS could choose not to offer those channels wanting an excessive amount for their channels and become more competitive that way in offering channels for a cheaper price or offer fox ala carte.

[DarrellP]

Good idea, Jacob, I would sign up with them in a heartbeat if they would drop all of the high priced sports packs and offer a good deal with better PQ than Dish.

[Jacob S]

And this is what I thought what Dish's plan was, to not offer the sports and in return be cheaper. I thought I remembered Charlie saying something about keeping rates down because he does not offer NFL Ticket and did not raise his rates $2 like DirecTv did because of the increase cost of NFL Ticket. Sports is charged seperately anyways so it should not affect other packages although some of those packages do have sports channels in them.