Dish Network Corp. (DISH)’s more than 14 million satellite-TV subscribers no longer have access to CNN, Cartoon Network and other Time Warner Inc. (TWX) cable channels. Turner Broadcasting, a unit of Time Warner, pulled the channels last night after failing to negotiate a new contract, Dish said in a statement. As the two sides pointed fingers, Turner said that Dish dropped the channels. Turner’s Boomerang, HLN, truTV, Turner Classic Movies and CNN en Espanol are also no longer available on Dish’s service. Blacked-out channels have become increasingly commonplace when contracts come up for renewal as networks demand higher fees for their programming and the TV distributors like Dish, in turn, push back on rising costs. The negotiations are particularly important to Time Warner Chief Executive Officer Jeff Bewkes as he aims to boost licensing fees and prove that his company can unlock more value for shareholders on its own than by merging with an entertainment rival. “We regret the service disruption to our customers, and remain committed to reaching an agreement that promptly returns this content to Dish’s programming lineup,” Warren Schlichting, Dish’s vice president of programming, said in the statement. At an investor meeting last week, Turner CEO John Martin said he plans to drive the majority of revenue growth through affiliate fees, not advertising sales. The break with Dish comes as CNN struggles to maintain its ratings and compete against Fox News and even its sister network HLN. On its website, Dish said it’s confident that an agreement can be reached to restore the channels soon, even though Turner is making “unreasonable financial demands.” Turner said on its website that it’s hopeful the two sides will return to the negotiating table, even after months of diligent work, including multiple extensions and compromises. Dish customers still have access to Turner’s biggest cable channels, TBS and TNT.
Posted on: Wed, 22 Oct 2014 16:48:47 +0000