DISH Sues Networks

Scott Greczkowski

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DISH Looks for Ruling on Questions Related to Copyright, Compliance

ENGLEWOOD, CO -- (Marketwire) -- 05/24/12 -- DISH today filed suit against ABC, CBS, Fox and NBC in federal court for a declaratory judgment on questions that have arisen related to the pay-TV provider's May 10 introduction of a user-enabled commercial skipping technology called AutoHop. This feature is an advancement that is generating buzz and already seeing a groundswell of support from consumers.

Filed with the United States District Court, Southern District of New York, the suit asks for a declaratory judgment that the AutoHop feature does not infringe any copyrights that could be claimed by the major networks, and that DISH, while providing the AutoHop feature, remains in compliance with its agreements with the networks.

DISH's monthly subscriber fees include significant "retransmission fees" that DISH pays to the major networks. Although the broadcasters have made much of their content available for free using sites such as Hulu, they have continued to demand substantial increases in their retransmission fees.

"Consumers should be able to fairly choose for themselves what they do and do not want to watch," said David Shull, DISH senior vice president of Programming. "Viewers have been skipping commercials since the advent of the remote control; we are giving them a feature they want and that gives them more control."

"We don't believe AutoHop will substantially change established consumer behavior, but we do believe it makes the viewing experience better," said Shull.

In addition to increasing media reports of planned legal action against DISH, three of the networks -- CBS, Fox and NBC -- have rejected ads for DISH's Hopper Whole-Home DVR, the device that features the AutoHop function.

"We respect the business models that drive our industry, but we also embrace the evolving nature of technology and new ideas," said Shull. "Advances in the ability to measure and target viewership will give the entire industry -- including advertisers -- the ability to develop better programming, more effective advertising and deliver an overall better experience to the viewer."

About AutoHop
AutoHop is an extension of the Hopper's PrimeTime Anytime™ capability, the exclusive feature that allows viewers, with one click, to record all of the primetime TV programming on ABC, CBS, FOX and NBC in HD -- the networks that deliver some of the most popular shows during primetime.
Once the viewer enables the PrimeTime Anytime feature, the Hopper automatically stores these shows for eight days after they have aired, creating an on-demand library of approximately 100 hours of primetime TV shows, and making it easy to access episodes from last night, or last week. AutoHop, using patented technology, works with most shows recorded using PrimeTime Anytime (patent pending).

A viewer can watch a show with the AutoHop option commercial-free starting at 1 a.m. ET, after a show has been recorded to the Hopper's PrimeTime Anytime library. Prior to that, the Hopper's 30-second "hop forward" feature continues to work for same-day viewing.
 
this is going to take years like the disney dispute is and expect higher prices and more fees :)
 
GaryPen said:
I don't think they are "suing" anybody, though. So, the thread title is not accurate.

Suing someone simply means that you are "instituting legal proceedings" against them. Which, is exactly what Dish did by filing this case. The fact that they are asking for a declaratory judgement instead of asking for money, an injunction, or some other punitive damages doesn't change that.
 
K9SAT said:
Yea but the networks own Hulu and the content!

That's besides the point. In placing it on Hulu for free, they are inherently undercutting the value of the programming to Multichannel providers.

1) it makes their argument that their content is worth $"X" per sub per month less tenable.
2) if subs can get the content free elsewhere, It becomes less valuable to Dish because they are no longer one of a few exclusive providers that offer that content as part of a larger pay tv package.
 
dangue said:
That's besides the point. In placing it on Hulu for free, they are inherently undercutting the value of the programming to Multichannel providers.

1) it makes their argument that their content is worth $"X" per sub per month less tenable.
2) if subs can get the content free elsewhere, It becomes less valuable to Dish because they are no longer one of a few exclusive providers that offer that content as part of a larger pay tv package.

It's not dish's content so therefore it's none of dish's business what happens with the content or how it is valued. They are only middle men passing that content to the end user! If they are being so undercut then why didn't they sue Hulu? The bottom line is the networks are the owners of the property or programs that you watch. They distribute it and they have the say with what happens to it!
 
I would care if I were a provider for sure. The Networks (in the eyes of Dish - I bet others too) are diluting the value of the product by making it available free, yet asking for higher and higher rates from the providers, all the while holding Dish hostage by pulling the network if an agreement is not reached. That's the crux of the problem, one that Dish is applying to AMC as well as far as dilution of content. If HBO had their programming available for little money elsewhere Dish would be unhappy with them too. I specifically picked HBO because they are indeed careful about their packaging and how their programming is accessed. I believe that's a reason Dish signed on to HBO GO.

I really don't if Dish is smart or not for doing this, but if they are afraid it will be an infringement later, might as well know that now I guess.....
 
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K9SAT said:
It's not dish's content so therefore it's none of dish's business what happens with the content or how it is valued. They are only middle men passing that content to the end user! If they are being so undercut then why didn't they sue Hulu? The bottom line is the networks are the owners of the property or programs that you watch. They distribute it and they have the say with what happens to it!

Bob, don't pretend that my comments came in a vacuum, I was responding to your response to someone else's post about retransmission contract costs needing to be parred. And given that Dish has to enter into contracts and pay to retransmit this content to subscribers, you better believe they give a damn about what happens to it and how it's valued. Those things will directly impact how valuable carrying the networks is to them and therefore how much they are willing to pay for retransmission consent.

Are you intentionally being obtuse, or are you really not understanding the relevance of the points being made by others?

As for suing Hulu, there's nothing to sue them over. Lawsuits are only good when there is a legal basis for your suit. This doesn't prevent Dish from negotiating future contracts with content owners differently to take Hulu et al into account.

It will be interesting if the FCC goes forward with classifying Hulu, Netflix and others as being the same Dish, Direct and the cable companies, at that point most favored nations clauses would likely be triggered and the networks would have a whole can a worms open up in their laps.
 
the networks are becoming the trash of the tv by removing great programs, forcing what technology the viewers can use and imposing fees every year for programming with less value than the year before. hope that dish wins this to force those idiots to respect the viewers or remove their channels from my sub!!!
 
To those who have been with Dish or aware of Dish since the 90's, you have to admit one thing. Never a dull moment...... :)
 
I think all you will see is that DISH will end up removing the AutoHop software ,after a length legal fight that DISH will lose. Even though I see DISH's point in this , I don't think they will win against the Big 4 networks in court.