Dish Network Drops 4 HD Channels

In a dispute with Disney and ESPN, Dish Network had dropped Disney Channel HD, Disney XD HD, ABC Family HD and ESPNNews HD. According to a report filed in MultiChannel News, Dish Network claims that proposed carriage fees for the four channels are too high. Disney has countered with the assertion that Dish Network does not have “a deal in place” to support distribution of the four channels.

Dish Network noted in the article that the company recently began offering all its customers, “HD Free for Life.” Dish Network has indicated that they will continue to negotiate with the Walt Disney companies until an agreeable rate can be reached. Continuation of the HD Free for Life arrangement is dependant on low-cost carriage fees, according to Dish Network.

Disney points out in a statement, that a recent New York State Court ruling supports its position that Dish Network does not have legal rights to the four channels without paying the fees. The court ruling cited by Disney is a breach of contract suit filed by Dish Network in 2008 claiming that Disney and ESPN did not provide them with the high-definition feeds of ESPNNews HD, Disney DX HD, Disney Channel HD or ABC Family HD.

Dish’s action did not effect the SD versions of all four channels.

One has to wonder, if Dish Network truly had no deal in place, how is it that the receivers used to pull the signals down were authorized?  This authorization had to have come from Disney and ESPN.  Is this a warning sign for rural telcos?  Does this mean that HD carriage fees are now subject to high rate increases?

Disney echoed Dish Network in regard to continuing negotiations for the HD channels.  Considering the the loss of the Dish HD subscribers, this seems logical.

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