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Yes the games are blacked out on Dish. My father has the sports package and when there is an out of the market game on one of the FOX sports channels he gets a message saying that the program is blacked out in his area.

As far as someone receiving KSTC via FTA it is possible. A lot of backhauls are moving from using a full ku transponder to sharing a transponder uning MPEG compression. Doing this the cost to uplink a broadcast is much cheeper. At the moment most of the backhauls are in the clear (or FTA) just because of the cost for adding encription and the fact that so many few people have FTA receivers.
 
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