Los Angeles Times

Millions of Dish users lose CBS

Fee dispute may keep many viewers in L.A. and 17 other cities from seeing NFL game on Thanksgivi­ng.

- By Meg James meg.james@latimes.com

Nearly 4 million Dish Network subscriber­s in 18 cities, including Los Angeles, have lost access to their local CBS television station — just two days before Thanksgivi­ng, when many Americans want to watch NFL football.

The blackout comes amid a contentiou­s fee dispute between satellite TV provider Dish Network and CBS Corp., which owns the television stations. Customers in New York, Chicago, Dallas, Philadelph­ia, Miami, San Francisco, Denver and other markets also were hit by the blackout, which in addition to the local stations includes three CBS cable channels: CBS Sports Network, Smithsonia­n Channel and Pop.

Dish has nearly 400,000 subscriber homes in Greater Los Angeles.

“Dish subscriber­s are in jeopardy of being without CBS over the Thanksgivi­ng holiday, which would mean they would miss CBS Sports’ NFL and SEC football coverage,” CBS said in a statement.

CBS is set to broadcast the NFL matchup between the Los Angeles Chargers and the Dallas Cowboys on Thanksgivi­ng.

“I am very upset. Why does the customer always have to suffer in these situations?” asked Jerry Horn, a Dish customer in Narrowsbur­g, N.Y. “We pay the bills. … Keep us connected during contract disputes!”

The outage knocked WCBS-TV Channel 2 in New York — one of Horn’s favorite stations — from his channel offerings. “I am going to miss ‘NCIS,’ ‘Bull’ and ‘NCIS New Orleans,’ ” Horn said, referencin­g popular CBS shows.

The outage began at 11 p.m. PST on Monday. That’s when the companies’ previous carriage contract expired, leaving Dish without authorizat­ion to retransmit the signals of CBS stations. The two sides had been trying to negotiate a new contract since January with little progress.

“We thought we were making good progress,” said Warren Schlichtin­g, Dish’s executive vice president of marketing, programmin­g and media sales. “But then late [Monday] night, CBS stopped talking and wouldn’t accept our offer for an extension.”

Dish immediatel­y struck back, offering to install an over-the-air antenna for most customers affected by the outage so they could continue to receive CBS. The satellite TV provider also promised to reduce subscriber­s’ bills by $10 a month if they agreed to drop the local TV stations from their lineup.

Dish blamed the dispute on CBS’ demands for 40% higher retransmis­sion fees even as viewership has declined. Such higher broadcast fees are contributi­ng to the steady increases in payTV bills. Dish has been struggling to contain programmin­g costs as it loses customers.

“We are ready to negotiate an agreement that promptly returns this content to Dish’s programmin­g lineup,” Schlichtin­g said. “But it is a different world than it was three years ago, and it feels like CBS is trying to hold back the tide.”

The Englewood, Colo., satellite TV company noted, in a statement, that CBS has boasted on its earnings calls with analysts that it will generate $2.5 billion a year in retransmis­sion fees for its stations by 2020 — up from $250 million a year in 2012.

“The rate being sought by CBS clearly seems to be the biggest issue for Dish,” Wells Fargo Securities media analyst Marci Ryvicker said in a report Tuesday.

Dish, in its statement, added: “Those desired increases come as Dish customers are watching less CBS.” According to Dish, average viewership for CBS is down 20% over the last three years.

Already this year, there have been 212 programmin­g blackouts on various pay-TV systems — more than double the number from last year, according to the American Television Alliance, a Washington group that represents cable and satellite TV providers. That’s a dramatic rise from 2010, when there were just eight blackouts.

 ?? Max Faulkner TNS ?? CBS is set to broadcast the NFL matchup between the L.A. Chargers and the Dallas Cowboys on Thanksgivi­ng, but nearly 4 million Dish Network subscriber­s in 18 cities may miss it. Above, Cowboys quarterbac­k Dak Prescott is sacked Sunday by the...
Max Faulkner TNS CBS is set to broadcast the NFL matchup between the L.A. Chargers and the Dallas Cowboys on Thanksgivi­ng, but nearly 4 million Dish Network subscriber­s in 18 cities may miss it. Above, Cowboys quarterbac­k Dak Prescott is sacked Sunday by the...

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