Media General Stations Removed from DISH, Agreement Reached

[king3pj]

Just out of curiousity, how exactly are these affiliates justifying the huge (if you believe the Dish side) price increase for the retransmission agreement? I would assume most national programming is the same regardless of location, with only local news and a few crappy shows being the difference. By crappy show for instance, after the Today show on WNCN in Raleigh they run this show that reminds me of that SNL skit with the two ladies having their own show (Amy Poehler was of them).

I really don't see how they can say they provide quality local programming that would justify that kind of an increase, at least on that station. The rest of the day is nation soap operas, today show, judge judy, etc etc that is on every NBC channel.

What are their "rising costs" for exactly?

Percentages can be misleading. I don't know the actual costs involved but for an example lets say they were asking for 1 cent per subscriber and now they want 5 cents per subscriber. Dish can say they are asking for an outrageous 500% increase while the station can say they are just asking for a measly 4 cent increase.


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[dare2be]

Percentages can be misleading. I don't know the actual costs involved but for an example lets say they were asking for 1 cent per subscriber and now they want 5 cents per subscriber. Dish can say they are asking for an outrageous 500% increase while the station can say they are just asking for a measly 4 cent increase.


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Still, if that 1 cent per subscriber amounts to 100,000 subscribers in a market, then that $1,000/month goes to $5,000 per month. When other local station owners try the same tactic and the MVPD gives in, it's out of control.

 

[king3pj]

Still, if that 1 cent per subscriber amounts to 100,000 subscribers in a market, then that $1,000/month goes to $5,000 per month. When other local station owners try the same tactic and the MVPD gives in, it's out of control.

True. My point is that the outrageous increase might not be as outrageous as people think. I certainly wouldn't call a 4 cent increase an arm and a leg. Now, I don't think any of us know what the actual numbers are. That was just an example.


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[Dudleydog73]

True. My point is that the outrageous increase might not be as outrageous as people think. I certainly wouldn't call a 4 cent increase an arm and a leg. Now, I don't think any of us know what the actual numbers are. That was just an example.

While I agree in principle that a 4 cent increase is pocket change, I don't believe a cost increase is justified at all since they do nothing but pass along the national feed 98% of the time while injecting local commercials that advertisers pay to run. Exactly what is costing them that big of an increase for the 2% of news and crappy shows they run in the offtimes? Its a moot point in that we will never know the answer to that question, but it would be nice to see a breakdown of the books from one of these stations in dispute to see exactly what the deal is.

 

[king3pj]

While I agree in principle that a 4 cent increase is pocket change, I don't believe a cost increase is justified at all since they do nothing but pass along the national feed 98% of the time while injecting local commercials that advertisers pay to run. Exactly what is costing them that big of an increase for the 2% of news and crappy shows they run in the offtimes? Its a moot point in that we will never know the answer to that question, but it would be nice to see a breakdown of the books from one of these stations in dispute to see exactly what the deal is.

Well costs are rising everywhere. Some of these contracts are for 10 years. Think of what some other stuff used to cost 10 years ago.

People here sometimes say that all the local channels should be provided to Dish for free since they are free OTA. I get the sentiment but Dish is selling us their channels. Why shouldn't they get a cut of what Dish is charging us when it's their product? Dish is advertising PTAT and auto hop like crazy. With out the local networks those features don't exist.


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[Scherrman]

Remember, 4 cents multiplied by 4 million customers is still $560,000.

 

[king3pj]

Remember, 4 cents multiplied by 4 million customers is still $560,000.

Actually that is $160,000. Also, how many DMAs have 4 million Dish customers? Also how much does Dish charge those 4 million subscribers for local channels? I think it used to be about $5 for locals before they were included in every package. If they had to move up to 4 cents per local they are still making out pretty well.

If they are charging about $5 for 4 million customers they are bringing in $20 million for those locals if they have 6 locals at 4 cents per local they are paying out $960,000. That leaves them plenty of room for their overhead and a nice profit.

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[Scherrman]

Actually that is $160,000. Also, how many DMAs have 4 million Dish customers? Also how much does Dish charge those 4 million subscribers for local channels? I think it used to be about $5 for locals before they were included in every package. If they had to move up to 4 cents per local they are still making out pretty well.

If they are charging about $5 for 4 million customers they are bringing in $20 million for those locals if they have 6 locals at 4 cents per local they are paying out $960,000. That leaves them plenty of room for their overhead and a nice profit.

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Sorry, I meant 4 cents multiplied by 14 million. I was just using it as an example for how much a few cents for a channel can turn into a lot when millions are viewing it.

 

[king3pj]

Sorry, I meant 4 cents multiplied by 14 million. I was just using it as an example for how much a few cents for a channel can turn into a lot when millions are viewing it.

Again, this is true. $560,000 monthly to provide locals to 14 million subs is chump change considering how much the charge us though. I get the point everyone is trying to make and understand that all of these numbers are hypothetical. I just don't have a problem with the little guys getting some of the profit when Dish is selling us their product.


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[Scherrman]

What I'm not sure on is who exactly is considered the "little guy" I don't actually know how much profit they all make, but I know that they all more more and more though.

 

[king3pj]

What I'm not sure on is who exactly is considered the "little guy" I don't actually know how much profit they all make, but I know that they all more more and more though.

I consider those companies that own 5-10 or so small local channels the little guy when they are dealing with a billion dollar company like Dish. The big boys like ESPN and TBS have a lot more resources to throw around during their negotiations than a local affiliate does. I imagine that Dish with their big checkbook and top lawyers just about always come out on top when dealing with these local affiliates.

Even if an entire DMA chooses to switch providers over the loss of a local it is just a drop in the bucket to Dish.


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[stardust3]

This is interesting.

C/P:

DISH has offered a short-term extension to an existing retransmission deal until Media General is formally acquired by Young Broadcasting, a broadcaster with which DISH has a long-term agreement in place; however, Media General continues to demand unreasonable rate increases to carry these channels and has now decided to involve our customers by messaging about these negotiations.


Seems like MG is the bully here.

 

[Teehar]

Yea.MG says pay us so we can cash out,screw the sort term extension offer.

 

[Deadlocked]

MG has absolutely no clout to lean on especially if their being acquired by YB.

 

[david_jr]

Again, this is true. $560,000 monthly to provide locals to 14 million subs is chump change considering how much the charge us though. I get the point everyone is trying to make and understand that all of these numbers are hypothetical. I just don't have a problem with the little guys getting some of the profit when Dish is selling us their product.

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Except your forgetting that the chump change is just the INCREASE and we are only talking about ONE local! Now take it a step further and what if every channel demands a 500% increase every time they are up for renewal? Are we still talking "chump change"?

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[king3pj]

Local CBS affilate running a scroll about Dish dispute - Media General

Except your forgetting that the chump change is just the INCREASE and we are only talking about ONE local! Now take it a step further and what if every channel demands a 500% increase every time they are up for renewal? Are we still talking "chump change"?

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I already did that a few posts after that one. I used an average of 6 local channels with a 4 cent increase each times 14 million customers and that increase would be $3.36 million. When you spread that out over 14 million customers that is still chump change compared to the billions they charge us.

Before they started making everyone subscribe to locals they charged about $5 to add them to your account. They are included in every package now but they raised the package prices when they added them in.

Now $5 for locals times 14 million subscribers and that's $70 million dollars they bring in from locals. That $3.36 million increase still leaves plenty of room left for their overhead and a very nice profit.

So yes, that is still chump change for Dish. Also, all the locals can't ask for that increase at the same time due to their contracts. Dish will never see that $3.36 million increase in any given month but they will bring in that $70 million.

 

[Deadlocked]

My local channel is spamming this message to every facebook wall post on their page.

WNCT has served this community for over 60 years and serving you is our number one priority. Our company is doing everything it can to reach a fair resolution with DISH before the agreement expires and avoid any disruption of service. Media General has reached hundreds of agreements over many years with every other cable, satellite and telephone company that carries our programs on their systems. WNCT is happy to say we’ve never experienced a disruption of service due to an impasse. Dish Network is known for causing disruptions all across the country. In fact, they have had at least 28 disruptions over the past three years alone, more than any other cable or satellite operator.

The current retransmission agreement between Media General and DISH Network will expire on September 30, 2013 at midnight. If a new agreement is not reached by then, DISH, by law, cannot carry WNCT on its for-profit satellite system.

After September 30, please understand that most viewers will continue to be able to receive WNCT in HD for free by using a basic over-the-air antenna. In addition, viewers will continue to be able to receive WNCT from a variety of other local cable operators, such as Suddenlink, Time Warner Cable, and from DIRECTV.
Contact DISH at 1-888-615-3725 and tell them Don’t Drop WNCT.

 

[stardust3]

If you want to air your dirty laundry publicly that's 1 way to do it.

?Can't say the adjectives on here that I think of this bunch.

 

[RobMeyer1]

I already did that a few posts after that one. I used an average of 6 local channels with a 4 cent increase each times 14 million customers and that increase would be $3.36 million. When you spread that out over 14 million customers that is still chump change compared to the billions they charge us.

Before they started making everyone subscribe to locals they charged about $5 to add them to your account. They are included in every package now but they raised the package prices when they added them in.

Now $5 for locals times 14 million subscribers and that's $70 million dollars they bring in from locals. That $3.36 million increase still leaves plenty of room left for their overhead and a very nice profit.

So yes, that is still chump change for Dish. Also, all the locals can't ask for that increase at the same time due to their contracts. Dish will never see that $3.36 million increase in any given month but they will bring in that $70 million.

Where did you get the 4 cent increase from? What I have read in past threads about local channel disputes leads me to believe that locals are asking to be paid rates comparable to other popular cable channels and that's a lot more than 4 or 5 cents per month.

 

[Deadlocked]

Where did you get the 4 cent increase from? What I have read in past threads about local channel disputes leads me to believe that locals are asking to be paid rates comparable to other popular cable channels and that's a lot more than 4 or 5 cents per month.

It was a simple example from upthread.