DISH -VS- VOOM - A Settlement has been reached!

[mikeinaustin]

more bad news for dish (from this morning):

The judge hearing the case of AMC Networks' Voom high definition programming services versus Dish Network ruled on Tuesday that Dish's expert on damages won't be allowed to testify during the trial.

According to Thomas Claps, an analyst for Susquehanna Financial Group, who has been following the trial closely, ruling by Judge Richard Lowe III is "another significant blow to Dish."

According to Claps, Dish wanted to rebut Voom's claim that it has lost $2.4 billion in profits. But due to this ruling, and prior sanctions against Dish, they won't be able to have an expert question that claim.

AMC claims that Dish, then Echostar, breached its agreement to carry the Voom programming service, which has been discontinued.

On Monday, newly produced internal Dish emails appeared to weaken Dish's position and support AMC's assertion that Dish was aware that overhead expenses should be counted toward the $100 million Voom was required to spend in 2006 on its service.

According to Claps, AMC produced an email exchange between Michael Schwimmer, the lead negotiator for Dish on the Voom deal, and Dish chairman Charlie Ergen, then also the CEO, from April 27, 2005. This email exchange highlights that the $500 million spending cap referenced in the affiliation agreement is tied to the $500 million equity investment referenced in the LLC agreement.

"This is critical because Annex A to the LLC agreement delineates a list of permissible expenditures that count toward this $500 million equity investment, and overhead expenses are specifically referenced (i.e., salaries, benefits, general administrative costs, inter-company allocations, etc.," Claps says. "Thus, this email exchange further strengthens Voom's claims that Dish was fully aware, and acknowledged, that overhead expenses should be counted toward its $100 million spending requirement in 2006."

Claps says he expects the case to be settled. Part of that settlement could be carriage of AMC Networks' cable channels, which have been off Dish since earlier this year.


http://www.broadcastingcable.com/article/489911-Dish_Damages_Expert_Not_Allowed_to_Testify.php

 

[mikeinaustin]

You know if this was a prize fight, the ref would called it a tko a long time ago...

 

[riffjim4069]

New boats for all the Dolans!

Post of the Day! :

 

[GaryPen]

It looks very much as if Dish is going to either lose this case, or settle for a LOT of cash (and probably a new AMC carriage deal).

I think it will be the latter.

AMC would be happy to increase viewership, and Dish would be foolish not to take the cash savings vs paying a full court award.

 

[GaryPen]

On Monday, newly produced internal Dish emails appeared to weaken Dish's position and support AMC's assertion that Dish was aware that overhead expenses should be counted toward the $100 million Voom was required to spend in 2006 on its service.

According to Claps, AMC produced an email exchange between Michael Schwimmer, the lead negotiator for Dish on the Voom deal, and Dish chairman Charlie Ergen, then also the CEO, from April 27, 2005. This email exchange highlights that the $500 million spending cap referenced in the affiliation agreement is tied to the $500 million equity investment referenced in the LLC agreement.

"This is critical because Annex A to the LLC agreement delineates a list of permissible expenditures that count toward this $500 million equity investment, and overhead expenses are specifically referenced (i.e., salaries, benefits, general administrative costs, inter-company allocations, etc.," Claps says. "Thus, this email exchange further strengthens Voom's claims that Dish was fully aware, and acknowledged, that overhead expenses should be counted toward its $100 million spending requirement in 2006."

Badabing.

 

[Yespage]

I really believe that Dish knows they can't win. Look at these replacement channels. HDNet Movies (repeat). Axis (repeat). Style (repeat). You all know that, but how can we find it acceptable to just throw repeats at everyone? High quality replacements?

Wha? AMC had their original programming... and that was the only tolerable programming they had. The commercial breaks on that channel are nuts. As noted by HDRoberts, HDNet Movies is much much better in overall programming than AMC. What other channels did we lose? WE? Umm... that channel is probably on level with Style. IFC... a channel that showed such great Indie films as The Perfect Storm?! AXS offers new concerts and events. I don't like much of it, but it does offer decent programming to some demographics.

Dish knows that either the nets will be restored in a settlement or restitution. AMC is a legacy channel found in the basic of tiers on most providers. It's one of those channels that doesn't make the choice, but you expect to see on your provider.

I don't. AMC offer four or five critical original programs and nothing else. As a 24/7 channel, it isn't that good. It rests its laurels on four or five programs.

 

[riffjim4069]

The judge hearing the case of AMC Networks' Voom high definition programming services versus Dish Network ruled on Tuesday that Dish's expert on damages won't be allowed to testify during the trial.

I thought their damage expert was prohibited from testifying back in August. But perhaps this is another witness or the judge didn't put his John Hancock to the final ruling.

"This is critical because Annex A to the LLC agreement delineates a list of permissible expenditures that count toward this $500 million equity investment, and overhead expenses are specifically referenced (i.e., salaries, benefits, general administrative costs, inter-company allocations, etc.," Claps says. "Thus, this email exchange further strengthens Voom's claims that Dish was fully aware, and acknowledged, that overhead expenses should be counted toward its $100 million spending requirement in 2006."

Not that Voom needed any more evidence than it already had, but when deleted emails surface indicating Dish executives were well-aware of the provisions of the spend requirement...well, then it leads one to believe this was a concerted efforted by Dish to illegally terminate the affiliation agreement, destroy and conceal evidence, and lied to the court under oath. Game, set and match?

Claps says he expects the case to be settled. Part of that settlement could be carriage of AMC Networks' cable channels, which have been off Dish since earlier this year.

Aren't these the same experts who predicted this case would be settled before the trail? Also, ould it be in Cablevision/AMC's best interest to settle at this juncture? Given the bad blood between these two parties, would a settlement include public disclosure of the terms along with an apology and a mint on the pillow?

 

[riffjim4069]

I don't. AMC offer four or five critical original programs and nothing else. As a 24/7 channel, it isn't that good. It rests its laurels on four or five programs.

I betcha I could rattle off dozens of channels that offer no original content, show tons of commercials during the day and 8-straight hours of informercials at night (10-straight on the weekends). Sindicated shows like Mayberry RFD, Gilligans Island, Good Times, Quincy and Maude don't count as critially acclaimed original programs 40-years after the fact. While I am not saying that I like all of AMCs original programming (most of it I don't watch), you gotta admit AMC is hitting homeruns when it comes to their scripted dramas....the critics like it, or the fans like it, and sometimes both like it. Personally, I liked AMC better when they used to show a lot more classic movies in accordance with their namesake.

Anyway, after the ratings success of Sunday's The Walking Deal, I'll bet you channels like USA, TNT and TBS wished they sucked as bad as AMC.

 

[The Fat Man]

I understand that. I already had the other 2 myself. But before you were complaining about their quality, so I was just pointing out the replacements aren't half bad.

A ton of people in your boat got free Rokus. I got $60 off my bill. A lot of us got something besides those 3 channels.

I was too lazy to take the part of your quote that I felt was relevant. So I quoted the whole thing.

 

[meStevo]

I thought their damage expert was prohibited from testifying back in August. But perhaps this is another witness or the judge didn't put his John Hancock to the final ruling.



Not that Voom needed any more evidence than it already had, but when deleted emails surface indicating Dish executives were well-aware of the provisions of the spend requirement...well, then it leads one to believe this was a concerted efforted by Dish to illegally terminate the affiliation agreement, destroy and conceal evidence, and lied to the court under oath. Game, set and match?



Aren't these the same experts who predicted this case would be settled before the trail? Also, ould it be in Cablevision/AMC's best interest to settle at this juncture? Given the bad blood between these two parties, would a settlement include public disclosure of the terms along with an apology and a mint on the pillow?

Can't some of these egregious violations result in exponential increases in damages and penalties?

I wish this last email stuff would have come out after Charlie took the stand.

 

[GaryPen]

Wha? AMC had their original programming... and that was the only tolerable programming they had. The commercial breaks on that channel are nuts. As noted by HDRoberts, HDNet Movies is much much better in overall programming than AMC. What other channels did we lose? WE? Umm... that channel is probably on level with Style. IFC... a channel that showed such great Indie films as The Perfect Storm?! AXS offers new concerts and events. I don't like much of it, but it does offer decent programming to some demographics.

I already had those channels. They offer no value as replacements, to me and many others.

 

[riffjim4069]

Can't some of these egregious violations result in exponential increases in damages and penalties?

I would think so. But the judge can reduce an unreasonable jury award (although if I were Dish I would not expect Judge Lowe to show them much love in this case) and an appellate court can do likewise. Anyway, here is a prime example of why it is in both parties best interest to reach a settlement:

Capitol v. Thomas was the first file-sharing copyright infringement lawsuit in the United States brought by major record labels to be tried before a jury. After declining a settlement offer of $5,000, the defendant, Jammie Thomas-Rasset, was found liable in a 2007 trial for infringing copyright on 24 songs and ordered to pay $222,000 in statutory damages. The court later granted her motion for a new trial because of an error in its jury instructions. In a second trial in 2009, before which she again declined a settlement offer (this time for $25,000) a jury again found against Thomas-Rasset, this time awarding $1,920,000 in statutory damages, a sum that was later reduced to $54,000. The record labels refused to accept the reduced award, so a third trial solely to determine damages was held in November 2010, resulting in a jury award of $1.5 million against Thomas-Rasset. In July 2011, the court again reduced the $1.5 million jury award to $54,000, or $2,250 per song.[5] The record labels appealed this decision. On September 11, 2012, the Eighth Circuit Court of Appeals reversed the District Court's reduction of the award, and reinstated the award of $222,000, which was the amount awarded by the jury in the first trial.

I wish this last email stuff would have come out after Charlie took the stand.

Why? He is taking the stand and having to explain conflicting statements. If he confirms Voom's version of the story then Voom wins. If he sticks to the story he told during deposition then Voom's legal team hammers him with his own email. I don't see either scenario playing in Dish's favor.

Does anyone know if Ergen took the stand today?

 

[cave1376]

Get ready for a large rate increase come Feb the longer the trial continues.

The only reason Charlie hasn't settled is because he is trying to save face.

 

[riffjim4069]

The only reason Charlie hasn't settled is because he is trying to save face.

Which one?

 

[PTVC]

Because the Constitution guarantees the right to a jury trial?

Just because a suit is filed does not necessarily mean it will make it through the court. The court could have decided that Cablevision had no case.

 

[PTVC]

Nothing AMC will get a new long term carriage agreement.

AMC only gets half the settlement CS get's the other half. So in the long term a new carriage agreement is a much better deal for AMC then a big one time payout and no carriage agreement.

I don't think AMC is really going to be-able to keep getting hits year after year it runs in cycle's.

AMC didn't get much more than $70 billion a year from Dish. Their overall earnings are up, 53% last quarter alone. Dish was only 13% of its subscriber base. AMC may want Dish but losing them is not going to close their doors.

 

[cosmo_kramer]

AMC didn't get much more than $70 billion a year from Dish.

Really?? I wonder how much a real network gets then....

 

[jacmyoung]

Just because a suit is filed does not necessarily mean it will make it through the court. The court could have decided that Cablevision had no case.

Only if there is no dispute of facts.

 

[navychop]

Why did the court specifically refuse to allow the expert testimony? Did he do something wrong? Or is it tied to a specific misconduct by Dish?

 

[navychop]

70 Billion? B?