According to most estimates, a battle between Dish Network Corp. (NASDAQ: DISH) and the Fox News division of Twenty-First Century Fox Inc. (NASDAQ: FOXA) cost Fox tens of thousands of viewers and Dish about the same number of subscribers. The damage likely triggered the settlement that put Fox News back onto Dish.
The companies disclosed:
DISH Network L.L.C. and FOX News Network, L.L.C. announced today that they have reached a multi-year agreement for carriage of FOX News Channel and FOX Business Network. These channels are now available to DISH customers with qualifying programming packages.
Tim Carry, FOX News and FOX Business executive vice president of distribution, and Warren Schlichting, DISH senior vice president of programming, jointly stated:
“We thank the viewers of FOX News and FOX Business and DISH customers for their patience throughout this process.”
Terms of the agreement were not disclosed.
Dish needs Fox News to maintain what subscribers believe is a complete list of channels, so the satellite company probably lifted the amount it will pay the news channel.
According to The Wall Street Journal:
Terms of the deal weren’t disclosed. However, people familiar with the talks said Dish is paying a significant increase for Fox News, which is one of the most popular networks, not just among news channels but entertainment and sports services as well. According to research firm SNL Kagan, the average monthly fee for Fox News is currently about $1.00 per subscriber. Under terms of the new pact, the price Dish would pay would rise to an average fee of around $1.50 per-subscriber, per-month, people familiar with the matter said.
The situation is not isolated. Satellite TV companies and cable firms have cut off content channels several times recently as part of negotiations to get higher fees per subscribers. However, over time, the trend will erode margins at the cable and satellite companies, and they can do nothing about it. The content companies that provide channels to the “pipes” for distribution have all the leverage.
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