http://biz.yahoo.com/ap/060810/echostar_settlement.html?.v=1
EchoStar in Talks to Settle Dispute With Networks As September Deadline Looms
DENVER (AP) -- EchoStar Communications Corp. said Thursday hundreds of thousands of satellite TV subscribers will be affected if it is unable to resolve a long-standing dispute over the delivery of distant network programming.
The operator of the Dish Network, the nation's second-largest satellite television service, is negotiating with networks that have yet to settle the claims. A September deadline looms to begin shutting off the distant network transmissions, which refer to channels from one region that are delivered to subscribers in another region.
"We are anxious to try to reach a settlement with the remaining broadcasters and we're very focused on trying to do that," EchoStar general counsel David Moskowitz told analysts during a conference call.
If discussions fail, the company would begin converting subscribers to another method of receiving those channels in the third quarter. Moskowitz said there are fewer than 1 million subscribers who would be affected.
The company has said it receives less than $5 a month per distant network subscriber but the end of such programming will reduce monthly revenue and free cash flow and increase churn -- customers who stop service.
Moskowitz made the comments as EchoStar executives discussed the company's second-quarter results. EchoStar Chief Executive Officer Charlie Ergen was absent from the call, away on a family vacation.
Sanford Bernstein telecommunications analyst Craig Moffett wrote in a research note published Thursday that "the broadcasters involved hold the cards and, without a settlement, EchoStar could face significantly higher churn."
The dispute has been ongoing since 1998 when over-the-air networks sued EchoStar, alleging its delivery of distant network channels violated a federal law outlining how satellite TV companies can provide service.
An appeals court in Atlanta agreed with the broadcast networks in a May ruling that ordered EchoStar to stop the practice. An injunction on that order is scheduled to take effect Sept. 11.
EchoStar has settled with NBC, ABC and CBS but remains at odds with Fox and five independent affiliate groups.
EchoStar's stock rose $1.10 a share, or 3.5 percent, to $32.58 a share in afternoon trading on the Nasdaq Stock Market after it reported a 17 percent increase in second-quarter revenue, which totaled $2.46 billion. In the past year, its stock has ranged from $35.95 a share to $24.44 a share.
Based in suburban Englewood, EchoStar has 12.5 million subscribers.
EchoStar in Talks to Settle Dispute With Networks As September Deadline Looms
DENVER (AP) -- EchoStar Communications Corp. said Thursday hundreds of thousands of satellite TV subscribers will be affected if it is unable to resolve a long-standing dispute over the delivery of distant network programming.
The operator of the Dish Network, the nation's second-largest satellite television service, is negotiating with networks that have yet to settle the claims. A September deadline looms to begin shutting off the distant network transmissions, which refer to channels from one region that are delivered to subscribers in another region.
"We are anxious to try to reach a settlement with the remaining broadcasters and we're very focused on trying to do that," EchoStar general counsel David Moskowitz told analysts during a conference call.
If discussions fail, the company would begin converting subscribers to another method of receiving those channels in the third quarter. Moskowitz said there are fewer than 1 million subscribers who would be affected.
The company has said it receives less than $5 a month per distant network subscriber but the end of such programming will reduce monthly revenue and free cash flow and increase churn -- customers who stop service.
Moskowitz made the comments as EchoStar executives discussed the company's second-quarter results. EchoStar Chief Executive Officer Charlie Ergen was absent from the call, away on a family vacation.
Sanford Bernstein telecommunications analyst Craig Moffett wrote in a research note published Thursday that "the broadcasters involved hold the cards and, without a settlement, EchoStar could face significantly higher churn."
The dispute has been ongoing since 1998 when over-the-air networks sued EchoStar, alleging its delivery of distant network channels violated a federal law outlining how satellite TV companies can provide service.
An appeals court in Atlanta agreed with the broadcast networks in a May ruling that ordered EchoStar to stop the practice. An injunction on that order is scheduled to take effect Sept. 11.
EchoStar has settled with NBC, ABC and CBS but remains at odds with Fox and five independent affiliate groups.
EchoStar's stock rose $1.10 a share, or 3.5 percent, to $32.58 a share in afternoon trading on the Nasdaq Stock Market after it reported a 17 percent increase in second-quarter revenue, which totaled $2.46 billion. In the past year, its stock has ranged from $35.95 a share to $24.44 a share.
Based in suburban Englewood, EchoStar has 12.5 million subscribers.
Be very surprised if E* ever reaches an agreement with Rupert.
Are you suggesting Dish transmit distants via ethernet to their VIP receivers? This would jive with Moskowitz statement re: "If discussions fail, the company would begin converting subscribers to another method of receiving those channels in the third quarter." It would also be easy to track the receivers physical location via IP.
