Lifetime Ala Carte?

[Scott Greczkowski]

Ok this one is interesting...

I just got this in my email box...

• EchoStar sent a letter Monday, Jan. 23 to Lifetime inviting them to immediately restore Lifetime Channel on a stand-alone basis (a la carte) for DISH Network customers who wish to subscribe to this channel. To do this, DISH Network is willing to pay Lifetime the most recent rate they proposed for broadcasting the Lifetime channel and to then make the channel available on a stand alone basis to any of our subscribers who request it.
  Lifetime had originally demanded an unreasonable rate to carry Lifetime as part of a bundle of channels in the America’s Top 60 package. But DISH Network remains committed to protecting it customers from unreasonable rate increases that would result from Lifetime’s exorbitant price demand.
  
  
  Letter to Lifetime ​
  Jan. 23, 2006
  
  
  Louise Henry Bryson
  President, Distribution and Affiliate Business
  Development Lifetime Networks
  2049 Century Park East, Suite 840
  Los Angeles, CA 90067
  ​
  Dear Ms. Bryson,
  
  EchoStar hereby offers to make Lifetime Network available on a stand alone basis (a la carte) to all DISH Network customers who desire to subscribe. We will pay the most recent rate proposed to us by Lifetime for the service. No further negotiation or arguing over rates is necessary.
  
  DISH Network stands ready to act immediately. If you accept, we can have the service back on the air immediately.
  
  Sincerely,
  Eric Sahl
  Senior Vice President of Programming

UPDATE 8:36PM

PLEASE SEE THE FOLLOWING THREAD FOR AN UPDATE FROM DISH NETWORK.

http://www.satelliteguys.us/showpost.php?p=460223&postcount=37

 

[BrianMis]

Yes Scott......very interesting.

I wonder what will happen?

 

[Dgenx321]

When Lifetime says no Dish will come out smelling like roses....

 

[Scott Greczkowski]

No matter what Lifetime says I bet you Charlie is sitting somewhere with a big grin on his face.

Lifetime you should learn, never play poker with a professional poker player.

 

[BrianMis]

Well at this point Lifetime would be stupid to say no. If Lifetime refuses this the whole arguement from their side goes out the window.

 

[rtt2]

Charlie is just brilliant here.

Lifetime refused to disclose its previous price to the public but this move would force it if they want carriage.

The public will see the exorbinant price per channel Lifetime has cost. I wonder how many will pay for a channel that esentually replays reruns of cancelled and syndicated TV shows.

 

[twinrocks]

We would do it!

If anyone from Dish is listening to us, their customers, we would do it IF it included all the Lifetime Channels.....because I am more interested in LMN, than the other two. But I would be willing to pay extra and get them all, NOT just Lifetime.

I can't see how this could work because I realise that not all subscribers want Lifetime. Can Dish settle for whatever the amount of subscribers they get? Is the cost based on how many subscribers, or a percentage, or what?

It would sure solve the matter if it could be done. Dish and Lifetime would be happy, and customers who want these channels would be happy....like us. Crossing fingers that Lifetime and Dish can work this out.

 

[roachxp]

When Lifetime says no Dish will come out smelling like roses....

Just like the YES deal take it or leave it

 

[samatha6]

I like it!

But of course they will say no. This is a la carte.. And we know content providers don't like it. I doubt Lifetime would ever go for that.. since that would be a real milestone. I think Dish can gain alot of PR with this offer. I doubt any channel would want to cave into doing a la carte.. that could start a trend.. and we know they don't want to change.. they like the bundle model. But this will be excellent PR for dish.

 

[gdarwin]

I can't see how this could work because I realise that not all subscribers want Lifetime. Can Dish settle for whatever the amount of subscribers they get? Is the cost based on how many subscribers, or a percentage, or what?

It's not what Dish would get out of it... It's the other way around... Can Lifetime settle for whatever the amount of subscribers they get... Lifetime gets only the ones that subscribe... Love it!!!

 

[Scott Greczkowski]

If anyone from Dish is listening to us, their customers, we would do it IF it included all the Lifetime Channels.....because I am more interested in LMN, than the other two. But I would be willing to pay extra and get them all, NOT just Lifetime.

I do believe that if they did it the Lifetime pack would contain all 3 Lifetime channels.

However I don't believe Lifetime is going to go for this.

 

[Peter Parker]

DISH knows that Lifetime will not accept it. This has really been silly all the way around.

 

[samatha6]

If anyone from Dish is listening to us, their customers, we would do it IF it included all the Lifetime Channels.....because I am more interested in LMN, than the other two.

Dish has taken LMN off the table... that slot is taken by Oxygen now. Its a little late for lifetime to negotiate LMN. Since the negotiations started up again last Friday, LMN is not anything Dish is negotiating for.
I think lifetime will say no to a la carte for sure.... no matter what the price.. I predict this will be the end of this and Lifetime will go on their media/political blizz.. They have already stated they are going the media route and I think there minds are already made up.
But I like the idea... wish I could a la carte ESPN too!

 

[dwcobb]

Well at this point Lifetime would be stupid to say no. If Lifetime refuses this the whole arguement from their side goes out the window.

I doubt that. By making the channel opt in, Lifetime loses one of the most important parts of being carried by E* - the marketing copy of the potential reach of their channel in raw households.

Even if 30% of E* households watched it, probably no more than 10% of those will be willing to pay to get it back. So where before they could claim something like 14,000,000 as part of their households who get the channel, it would instead become 420,000. And defacto, that would mean they would get paid a fraction of what they wanted since the amount E* paid them would ALSO be 3% of what they were hoping for.

This is just some gamesmanship so E* can look like the good guy to their customers. Lifetime isn't likely to bite at this. Better for them to encourage anyone who wants Lifetime who is currently with E* to switch to D*, which would be good for their relationship with them.

 

[John Kotches]

Lifetime can't agree to this, as then it would show how few would be willing to actually pay for the channels ala carte

The only way they can get significant subscription numbers is to be bundled in packages.

Cheers,

 

[rtt2]

The real reason is Lifetime will not accept this is becaus their advertisment rates will go down due to the lack of HH viewers

 

[dwcobb]

That I don't agree with.

Ad rates are set by viewership. More viewers means better ad rates. They can't set rates based on potential vierwship. Nielsen ratings etc measure ACTUAL (well estimated actual) audience figures.

The only bit that helps them with households is the positioning they can do BEFORE they reach ad rate discussions.

 

[GOHAWKS]

I wish E* would work something out with OLN, at least give us the option.

 

[sattec]

thats a sucker offer..thats the price of 10 million subs charlie, not 3 million that will pay a la carte!!!! a la carte to 3 or 4 or 7 million is a different story

 

[riffjim4069]

Nice poker move by Charlie, but it's nothing more than throwing salt in the opponents eyes and playing games in the media. Let's assume Lifetime was offering their channels for $1 per subscriber (all 12M of them) - that's 12M dollar per month. Ok, let's further assume only 15% will subscribe a la carte - that' only 1.8M per month. Not gonna happen since Lifetime Networks pricing model isn't based on a la carte.

It's an even better move by Charlie since he would jack up the Lifetime fee to $5, pocket $4, and let everyone scream at Lifetime.

Anyway, why stop at Lifetime? ESPN? Discover? Let's have all channels a la carte!