ABC is one of the most popular television networks, and it was recently pulled off from DISH without any apparent reason.
Recently, one of the major broadcast television networks in America – ABC – was pulled from DISH Network’s list of available channels due to a battle over payment for carriage rights. This removal impacted millions of DISH viewers with no access to shows like popular ABC or sports. However, getting to these questions; why did this happen in the first place and why has it still been incredibly tough for DISH and ABC to negotiate for a new deal?
The ABC-DISH Dispute
The primary issues in the ABC-DISH conflict involved retransmission consent fees. Retransmission consent can be defined as the money paid by the cable and satellite entities to the broadcasters for the signals of the broadcasters to be relayed by the cable and satellite entities. When the prior affiliation contract between ABC and DISH expired in July 2022, ABC demanded more money from DISH to broadcast its stations. However, DISH refused to meet these demands of ABC, ABC disconnected its stations from DISH, and it also began to put pressure campaigns against DISH.
It is not the first time DISH has been involved in a conflict regarding retransmission fees that broadcasters demand from cable and satellite TV providers. They have been struggling with other big broadcast groups in recent years as fees soared across the board, and sometimes it has taken them years to return from blackouts. DISH says it is trying to continue to minimize the cost that is passed on to the consumers while the broadcasters state that they are content producers and should thus be fairly paid and that DISH wants to reap the most profit possible.
Why Retransmission Disputes Happen
There are several key reasons why retransmission disputes like this occur:
- Increasing Retransmission Fees – The fees that the broadcasters demand from the cable and satellite companies for allowing them to rebroadcast their programs have gone up tremendously in the recent past. These fees are a revenue of the sort that broadcasters deem necessary in the new world of broadcasting characterized by digital technologies. DISH has accused these fees of being exorbitant and provision erodes into profits.
- Cord-Cutting Fears – The pay-TV industry is undergoing a tough period due to what is referred to as cord-cutting losses and these two sides also have their fears during these negotiations. Broadcasters would like to offset the loss of subscribers whereas DISH feels that it should maintain its prices as low as possible.
- Sports Programming – ABC learned that it holds valuable sports programs, such as NBA games and NCAA football, which give it bargaining power over the carriers. This is a finding that requires little explanation; sports is one of the only genres of ‘reality’ programming that people feel they must have, particularly live.
- Tactical PR Battle –, both wade into a PR battle accusing the other of being dangerous to the consumer. Broadcasters advertise their content as essential while DISH claims it protects consumers from the sudden increase in prices. Both aim at making their counterparts’ clientele put pressure on the other side.
How Long Will the Blackout Last?
For DISH consumers there is no apparent sign that the ABC blackout is going to come to an end any time soon. Until now, the negotiations are still very limited to provide or achieve something significant. In other cases, DISH has demonstrated a propensity for offering long-term, large-scale blackouts while attempting to address dissatisfied clients through other means, such as free over-the-air antennas.
On the bright side, broadcast blackouts have not stayed for long due to public pressure that both companies have to deal with. It could be likely that a new deal will arise when the new television season starts and ABC's fall schedule is launched. ABC understands that DISH wants its viewers to have hit ABC shows and live sports, meaning that it might have to go back to the negotiation table even if it means major concessions.
However, as we speak, ABC programming is off-air on DISH until real negotiations take place. This could extend the date by weeks, if not, months as both play tough and attempt to get the better part of the bargain. Unfortunately for viewers impacted, these disputes are just gargantuan businesses fighting with each party seeking an economic edge over the other that leaves consumers in the crossfire.
The ABC vs. DISH controversy also demonstrates that retransmission consent and carriage fee disputes over broadcast signals are not theoretical arguments but rather have practical implications for viewers. However, as has been witnessed with broadcasters demanding higher and higher rates in the middle of a thorny web of corporate interests, there is no clear long-term fix for the problem in sight as far as the industry is concerned. The outcome is a change of events where the audience is deprived of the media content, they want due to the ongoing battles of the media titans.
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