DISH Network provided telecommunications services to millions of clients in the United States, but in early December 2022, the telecommunications company pulled out multiple local network affiliates in 120 regions. This removal affected millions of DISH subscribers with a lack of signal for popular broadcast stations including ABC, CBS, FOX, and NBC in their local markets. Now let’s take a closer look at what transpired and why these local channels were dropped in the first place.
The Litigation Between DISH and Other TV Service Providers
The origin can be traced back to the war between DISH and the television providers that hold the rights to retail local network programming. This is the reason DISH failed to get new deals with both Nexstar Media Group and Cox Media Group, which led to the blackouts.
Nexstar is a local television broadcasting company that is based in the United States of America and is the biggest one in the country. They own network affiliates that cover almost 39% of all Television households across the United States of America. Cox Media Group also owns multiple local network affiliates in small markets. These stations were previously being aired by DISH to their customers, but the contract was not renewed and thus they lost the rights to air them.
Specifically, on its website, DISH accused Nexstar of instigating blackouts due to the company’s “unreasonable demands” for payment. They alleged that Nexstar wanted to charge them ‘over 50% more’ in fees for giving the same channels. But Nexstar countered by stating that it was asking for only a “reasonable set-fee arbitration rate” as used by other providers and broadcasters recently.
Whether it was DISH that came out on top or it was the local networks, the ultimate losers in this fight were the customers who could no longer catch their favorite programs on local ABC, CBS, FOX, and NBC stations.
This paper focuses on evaluating the impact of the above changes on the customers of DISH.
These blackouts affected more than 120 regional markets across 33 states and the District of Columbia. Some of the major metro areas that have been affected include Los Angeles, Atlanta, Miami, Chicago, San Francisco, Boston Philadelphia, and others. appointment
For subscribers in these areas, it translated to missed opportunities to watch Sunday NFL football on CBS or FOX, failure to watch prime-time shows, or even local news. The upset customer complaints included missing college or high school football championship games that aired on local stations only.
Some previously filed complaints about the show’s scheduling that placed it before the holidays, when families are eager to watch Christmas programs and New Year’s on ABC or NBC. This led to the loss of kids’ programming, such as cartoons on weekend mornings for parents to babysit their young children with. Overall, there was concern from customers about losing local news and weather services from popular stations.
Besides, DISH tried to appease customers with the promotion of $10 reductions on the affected bills and streaming antennas to access signals over the air for free. Nevertheless, several subscribers persisted in being annoyed at the fact that they were paying for the service, yet not all the channels were present at their full capacity. Some even threatened to cancel and drop the service provider altogether.
No Resolution in Sight
To the best of my knowledge, there isn’t a set time that DISH will be back at the negotiating table securing deals to bring back these lost local channels. The conflicts have continued during the festive season and have even extended into the new year 2024 and there is no indication that they will end any time soon.
In general, there is more reason for both sides to stay stubborn in their demands rather than give concessions. It is a common understanding that broadcasters are demanding increased retransmission fees to offset lower ratings on the networks. On the other hand, Pay-TV providers attempt to curb some of these expenses to ensure that consumers do not have to pay high fees.
So far, the DISH viewers will be left without their favorite local programs unless the two sides reach an agreement. For DISH, getting out of this as soon as possible is important since establishing its reputation after almost losing nearly two million satellite subscribers in recent years due partly to contract issues is very important. As streaming services continue to evolve, future blackouts could potentially further accelerate cord-cutting.
For those of the viewers who are still waiting for the channels to be returned, DISH assures that “We will continue our efforts to negotiate with you.” But with no details of active negotiations, the viewers stay tuned into an all too familiar cycle of waiting.
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