EchoStar Rejected by High Court Justice, Must Halt Distant Networks

Discussion in 'General DISH™ Discussion' started by Chris Blount, Aug 22, 2006.

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  1. Aug 22, 2006 #21 of 244
    Chris Walker

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    $$ to the broadcasters will change that. Directv violated the law too, and settled with the broadcasters to continue to sell the distants. Dish just hasn't settled yet.
     
  2. Aug 22, 2006 #22 of 244
    Chris Walker

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    Yea it's basically "take your money and shut up", but I see no reason why the couple remaining broadcasters wouldn't take the cash. They get nothing otherwise.
     
  3. Aug 22, 2006 #23 of 244
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    From E*'s 10-Q for the 2nd Quarter:
    In the event the Court of Appeals' decision is upheld, and if we are unable to settle with the remaining plaintiffs, we will attempt to assist subscribers in arranging alternative means to receive network channels, including migration to local channels by satellite where available, and free off air antenna offers in other markets. While the broadcasters have agreed to delay issuance of the injunction until September 11, 2006, we are likely to commence (but not complete) shut offs of distant network channels during the third quarter of 2006. Those shut offs could have a material impact on our results for the quarter. However, we cannot predict with any degree of certainty how many of our distant network subscribers would cancel their primary DISH Network programming as a result of termination of their distant network channels. Our revenue from distant network channels is less than $5 per distant network subscriber per month. While less than one million of our subscribers purchase distant network channels from us, termination of distant network programming to those subscribers would result, among other things, in a reduction in average monthly revenue per subscriber and free cash flow, and a temporary increase in subscriber churn. We would also be at a competitive disadvantage in the future, since the injunction would prohibit us from offering distant network channels that will be available to certain consumers through our competitors.
     
  4. Aug 22, 2006 #24 of 244
    Chris Walker

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    ^^ Ok, so it's now up to Dish to settle or the distants disappear. From everything I read and understand, the whole problem here is that Dish did not settle like Directv did for their violations.
     
  5. Aug 22, 2006 #25 of 244
    Shellback X 23

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    Well I fully qualify for a RV Waiver which is how I get my nets and if NYC and DEN disapear on 9/11 I will take my waiver to D* on 9/12.
     
  6. Aug 22, 2006 #26 of 244
    Chris Walker

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    I'm gone too if it happens. I have my distants 100% legally and I would feel betrayed by Dish if I lose my signals due to their incompetence. They need to do the right thing and settle this. It may be costly, but in terms of subscriber losses and future potential subs not going with E*, it'd be less costly to just settle.
     
  7. Aug 22, 2006 #27 of 244
    JohnH

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    Not only did they not settle at that time, but the pattern of violations apparently continued.

    There probably are currently some out there with 4 or 5 of the same network.

    It may not be a good business decision to settle at this point.
     
  8. Aug 22, 2006 #28 of 244
    Chris Walker

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    Well if it's not a good time to settle now, when is? It's not going to get any better, what's done is done. It's time to pay up Charlie.
     
  9. Aug 22, 2006 #29 of 244
    foghorn2

    foghorn2 AllStar

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    Don't settle, let the distant subs stay or go to D*, concentrate on HD and new subs and gain subs from cable and D*. Make the VIP internet ready and start up DishSling devices!

    Thats what I would do.
     
  10. Aug 22, 2006 #30 of 244
    JohnH

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    May be cheaper to let the distants go away.
     
  11. Aug 22, 2006 #31 of 244
    Chris Walker

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    Foghorn, you'd have a different view of things if you currently had the distants! Keep in mind that most all of the distant subscribers are very LONG term subscribers and probably have high monthly bills (mine is over $100). Charlie would want to keep us I'd assume. We shall see..
     
  12. Aug 22, 2006 #32 of 244
    Chris Walker

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    But aren't they still liable for damages even if the injunction happened? It seems to me it's either 1) pay the damages and settle or 2) have the injunction issued, lose hundreds of thousands of subscribers, and still pay damages later
     
  13. Aug 22, 2006 #33 of 244
    BarryO

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    Simple. When the networks sell a show to a local station, that station buys an exclusive license to broadcast that show in its DMA. The contract says the network won't permit anyone else to broadcast the show into the local station's territory.

    Such copyright-licensing arrangements are also enforced by laws like the SHVIA (sp?) Act. As someone once pointed out to me, there is an NAB member operating in nearly every congressional district in the country, so they generally get what they want.
     
  14. Aug 22, 2006 #34 of 244
    hankmack

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    I wonder is Dish will offer incentives to those who will lose their distants to try to keep ud from switching to Direct. Fortunately we get our locals through Dish so the loss of the distants will save us $5 a month with very little pain.

    It is really best business practice to obey the laws.:nono2:
     
  15. Aug 22, 2006 #35 of 244
    Chris Walker

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    I'd laugh at Dish if not only do they not settle but they then offer a "free off-air antenna" (1998 again anyone?). I'll be long gone from E* before they make such a lame offer to me, but I hope others tell them to shove it. Hopefully it won't come to that.
     
  16. Aug 22, 2006 #36 of 244
    James Long

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    I expect E* will end up losing distants. I believe they are beyond settlement.

    Distants are so last millenium. Time to move on.
     
  17. Aug 22, 2006 #37 of 244
    minnow

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    I don't know how it could be cheaper for DNS to go away when your looking at the potential loss of thousands of subscribers. Especially when most of us can get our Distants by going to Direct. And that's exactly what I plan to do on 9/11/06 when the switch is thrown.
     
  18. Aug 22, 2006 #38 of 244
    Badger

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    Question. If you can get your locals through E* then why did they give you distants? Isn't that what put them in this mess?

    Someone else in the midwest posted that they can get their locals OTA but also get LA distants from E*. Isn't that another example why E* is in this mess?
     
  19. Aug 22, 2006 #39 of 244
    crackasmile

    crackasmile AllStar

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    Distants are what I primarily watch. I love the time shifts from CA stations if I miss stuff on the NY stations. I also love the fact that all of the distants are in STEREO. Only one out of our 3 major network affiliates (no ABC here in Terre Haute, IN) actually broadcasts in stereo all the time. Another never does and the 3rd does sometimes.

    Was going to upgrade to HD system but have held off pending Distants decision.

    I will leave dish if I lose my distants because I can get my locals OTA.

    Can anyone tell me what specifically has to happen between now and Sept 11 for Dish to keep distants and will it cost us more...prefer no speculation and only facts if possible.

    Thank you.


     
  20. Aug 22, 2006 #40 of 244
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator

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    From the court's decision:
    The best case scenario, which takes as valid EchoStar’s claims of waivers and grandfathered status (the same ones for which district court found EchoStar failed to carry its burden of establishing), indicates that, on a nationwide basis, EchoStar is presumptively providing illegal service to 26.5% of its subscribers receiving ABC distant network programming, 26.9% for CBS, 20.2% for Fox, and 28.1% for NBC.​
    Those people can't simply move to D* and get locals. And thanks to the latest version of the law, people cannot get distants if their own locals are offered. (Fortunately D* has less LIL markets so more of the country will qualify than if the situation were reversed. :) )
     
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