Univision Communications Inc. Walks Away from Negotiation Table,

Scott Greczkowski

Scott Greczkowski

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DISH: Univision Communications Inc. Walks Away from Negotiation Table, Creates Apparent Impasse, Seeks Massive Price Increase in Face of Ratings Tumble

June 29, 2018

- Univision proposes roughly 75 percent rate increase, despite ratings decline of approximately 30 percent
- Univision attempting to force DishLATINO and Sling Latino customers to pay nearly double what the broadcaster charges for its direct-to-consumer streaming product
- DISH prepares for Univision to block DISH and Sling customers from its channels
ENGLEWOOD, Colo., June 29, 2018 /PRNewswire/ -- DISH, operator of DishLATINO and Sling TV, announced today that negotiations with Univision Communications Inc. have reached an apparent impasse following untenable demands by the programmer and by Univision's abrupt departure today from the negotiating table. DISH is preparing for Univision to block DISH customers from its channels.


Univision is calling for price hikes designed to impact the Latino market we have served for more than 20 years," said Alfredo Rodríguez Diaz-Marta, Vice President of DishLATINO and Sling Latino. "We are disappointed and saddened by Univision's threats to block our customers from Univision news and entertainment content, especially during such challenging times."

"Univision waited weeks to counter our previous proposal and has not responded to our latest proposal," said Rodríguez Diaz-Marta.

Univision is demanding DISH pay roughly 75 percent more for channels whose ratings have declined among DISH viewers by approximately 30 percent over the past five years. In fact, ratings for its flagship Univision channel have declined by nearly 40 percent since 2012. These trends are only expected to continue. For example, Univision failed to secure rights for the current World Cup, as well as the World Cup in 2022 and 2026, losing out to one of its competitors in domestic Hispanic programming.

Making Univision's proposals even more unrealistic is the fact that over the past two quarters, Univision channels have been among the least-watched linear channels on Sling Orange and Sling Blue. Virtually all Sling customers can access Univision Now should they choose.

And, despite the direct-to-consumer Univision Now app costing $7.99 per month, Univision is asking DISH to pay almost double that amount for its DishLATINO and Sling Latino customers to watch the same content.

Additionally, many customers of both DISH and Sling are able to receive Univision for free over-the-air. DISH and Sling will send free antennas to eligible customers who request one. Dish and DishLATINO customers seeking more information can visit dishpromise.com or dishlatino.com/promesa. Sling customers can visit help.sling.com or ayuda.sling.com.

"Univision is dealing with tremendous uncertainty as it faces significant business challenges, including its failure to secure rights for the World Cup," said Rodríguez Diaz-Marta. "A massive price increase on our customers is not a path forward; we remain unwavering in our commitment to those we serve. We hope Univision will reconsider its demands and help us reach a swift, fair resolution."

The list of affected local markets is available here.



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zippyfrog

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And, despite the direct-to-consumer Univision Now app costing $7.99 per month, Univision is asking DISH to pay almost double that amount for its DishLATINO and Sling Latino customers to watch the same content.

I don't get this quote. What does "almost double that amount" mean? Does it meant that they are asking for almost $16 per customer? That is way more than ESPN and Disney. I must be missing something.
 
Bobby

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I don't get this quote. What does "almost double that amount" mean? Does it meant that they are asking for almost $16 per customer? That is way more than ESPN and Disney. I must be missing something.
No, I think it more like Univision wants something closer to the $7.99 a customer that their Now app commands.
 
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Sean Mota

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Dish will need to prepare to start losing people if this is not resolved and the channel is turned off. Univision is a very popular channel among spanish speaking customers.

"If our leaders seek to conceal the truth, or we as people become accepting of alternative realities that are no longer grounded in facts, then we as American citizens are on a pathway to relinquishing our freedom."
 
pattykay

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Dish will need to prepare to start losing people if this is not resolved and the channel is turned off. Univision is a very popular channel among spanish speaking customers.

"If our leaders seek to conceal the truth, or we as people become accepting of alternative realities that are no longer grounded in facts, then we as American citizens are on a pathway to relinquishing our freedom."
"I reject your reality, and substitute my own."
 
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pattykay

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I don't get this quote. What does "almost double that amount" mean? Does it meant that they are asking for almost $16 per customer? That is way more than ESPN and Disney. I must be missing something.
I think that means that they want to require Dish to charge their customers that much per month, not that Univision would actually collect that much from Dish.
 
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Sean Mota

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PLEASE keep politics out of it
Nothing to do with politics if that offended anyone.

"If our leaders seek to conceal the truth, or we as people become accepting of alternative realities that are no longer grounded in facts, then we as American citizens are on a pathway to relinquishing our freedom."
 
N

NABRIL

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How do you get the antenna? I watch that channel. Used to.
 
pattykay

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How do you get the antenna? I watch that channel. Used to.
I just saw your other thread about wanting a quieter remote control. When you call or chat about getting the antenna, be sure to ask for the 40.0 remote control also, and you will probably get it for free. In these dispute situations, Dish will do almost anything within reason to keep a customer from leaving.
 
Least

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As I always say in disputes that include broadcast channels, where do they get off charging that much to pay TV providers when they give their content away for free OTA? I think Univision is just catching up on the shady deals that the likes of FOX, NBC, CBS, and ABC have been playing for a long time now. It doesn't make Univision right. It just shows that they are following in suit.
 
NYDutch

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The concept is that the cable and satellite providers are using the program providers copyrighted materials to make money, so the program provider should share in the profits. It's really not all that different a concept from a book store paying publishers for multiple books instead of buying just one copy and then selling copies of it.
 
pattykay

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There has been bad blood between Univision and Dish for some time now. If I remember correctly, there was a lawsuit after Univision made some soccer games available streaming directly from them, and Dish said that their streaming contract with Univision did not allow Univision to compete with Dish's streaming by offering that content directly. Then, Dish's contract to carry some of the lesser Univision spin-off channels expired, and Dish chose not to renew that carriage. So, it should really be no surprise that the main Univision channels were pulled when that contract finally expired. This has been brewing for awhile.
 
navychop

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Well, there are other Hispanic channels to get more exposure.


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ChadT41

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I think that may be a signature for Sean...

How does any channel demand an increase when they have a major decline in viewership, and have lost rights to major events. Obviously Univision is not as big with Latino customers as assumed, if they have a 40% drop in viewership in 6 years.
 
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pattykay

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I think that may be a signature for Sean...

How does any channel demand an increase when they have a major decline in viewership, and have lost rights to major events. Obviously Univision is not as big with Latino customers as assumed, if they have a 40% drop in viewership in 6 years.
I can only speculate, but perhaps Dish proposed removing those channels from the English-language packages, and only including them in the Latino packages. Then, Univision countered with saying that if Dish is going to take even more potential viewers away from them, then they still want at least the same amount of money per month, which would then amount to doubling the per-subscriber rate for the remaining subscribers.
 

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