ECHOSTAR TAKES RETRANSMISSION FIGHT TO FCC
Young Bcstg. disputed EchoStar claim at FCC that it “conditioned” retransmission consent for Nashville and San Francisco stations on carriage of Young stations in other markets while charging excessive fees. After having local broadcast signals shut off in San Francisco and Nashville when it couldn’t reach agreement (CD March 2 p10), EchoStar moved fight with broadcaster to Commission, where it accused Young of attempting to get “arrangement” under which it would be paid “4 times for retransmission of network-affiliated stations.” Carriage complaint at FCC charged Young attempted to receive cash fee “above norm” for retransmission deals and making carriage of independent stations prerequisite for contract.
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EchoStar said broadcaster attempted to force it to pay additional fee for retransmission of independent station along with another network affiliate scheduled to lose its network affiliation (KRON-TV [Ch. 4, NBC] San Francisco). Dispute continues even though companies had appeared to reach settlement in June that eventually fell apart. Industry official said dispute could be “preview” of things to come as DBS providers and broadcasters “jockey for position” over carriage rights of local signals.
In effort to help tarnished image with EchoStar subscribers, Young issued statement Tues. challenging EchoStar’s characterization of negotiations and denying it had “conditioned satellite retransmission consent in San Francisco and Nashville” on carrying Young stations in other markets. Young Vp Deborah McDermott said EchoStar was offered each station on individual and group station basis. Young also released portions of letter it faxed to EchoStar Chmn. Charles Ergen March 2: “We have said over and over again -- and time again -- verbally and in writing from the very outset of our negotiations that Young Broadcasting will be happy to negotiate with EchoStar one or more agreements on a station-by-station, a la carte, basis. We are now and have always been receptive to an individual station retransmission agreement or agreements.”
McDermott challenged EchoStar to release negotiating documents and exchanges of correspondence. “If it will authorize us to release them, we will do so.” She also said EchoStar “ignored” requests to inform consumers that they might be losing network transmissions at least 2 months before cutoff. She said dispute was about “the fee that EchoStar has offered to pay us for the privilege of reselling our signal to its customers.” McDermott said company reached similar retransmission agreements long ago with DirecTV and cable.