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Friday, May 16, 2008

WBRZ

DISH Network FAQs

1. Is WBRZ really only asking for less than a penny a day per subscriber?

Yes. WBRZ is seeking less than a penny per day per subscriber. This equates to $0.20 per month per subscriber. Please note that WBRZ would be paid only for those subscribers who receive WBRZ from Dish Network. If a subscriber does not purchase the local package from Dish Network, WBRZ is not paid for that subscriber.

Dish Network charges $5.99 per month per subscriber for each subscriber to receive the local television stations, such as WBRZ. Therefore, WBRZ is seeking to receive only 3.4% of what subscribers pay Dish Network. If the five other local commercial stations each received 3.4% of the monthly charge, the local stations would receive just 20.4% of the $5.99 charge that Dish Network levies against its subscribers to receive these signals. Because Dish Network pays no copyright royalties for these signals, that would mean 79.6% of the $5.99 monthly charge goes to Dish Network for overhead and profit.  In simple math, Dish Network charges you $5.99 for the local stations and will not pay $.20 of what they collected for that purpose.

2. Dish Network says that WBRZ is asking for a 100% increase. Is that true?

Unfortunately, we cannot comment on that. Due to the confidentiality provision in our current contract, we cannot disclose this information. We are asking for what we believe is fair, and we believe that less than a penny a day per subscriber is fair.

3. Why does WBRZ think that less than a penny a day per subscriber is reasonable?

Cable operators and satellite carriers, such as Dish Network, pay for virtually every channel they offer to subscribers. They then bundle a whole bunch of channels together and resell them to subscribers. In other words, video program distributors buy "parts" (the programming channels), put them together into a "package," and sell that package to retail customers (their subscribers). The "parts," of course, are not free.

In February 2007, a number of cable operators and cable/satellite networks reported to the Federal Communications Commission on the average monthly license fees that video program distributors pay for programming channels. The top ten license fees per subscriber per month, at 2006 rates, are as follows:

 

Programming Channel

2006 License Fee Per Subscriber Per Month

ESPN

$2.91

Fox Sports

$1.67

TNT

$0.89

Disney

$0.79

Fox News

$0.75

$0.47

CNN

$0.44

Nickelodeon

$0.41

TBS

$0.39

FX

$0.35

 

Although WBRZ does not know what Dish Network pays for any particular programming channel, WBRZ is asking for less-in most cases, much, much less-each month than the 2006 industry averages for each of the programming channels listed above. Because WBRZ's programming is more popular-in fact, many times far more popular-than the programming offered by any of these programming channels, WBRZ believes that its request of less than a penny per day ($0.20 per month) per subscriber is very fair and reasonable.

4. If Dish Network drops WBRZ, won't Dish Network simply make ABC programming available from another station?

No. For many years, Dish Network engaged in a massive nationwide pattern and practice of copyright infringement by delivering out-of-market network signals to subscribers who were not legally eligible to receive them. As a result, beginning December 1, 2006, a federal court permanently barred Dish Network from delivering any out-of-market ABC, CBS, Fox, or NBC stations to any subscribers. Consequently, Dish Network is legally prohibited from making another ABC station available to subscribers in WBRZ's television market.  

5. If Dish Network agrees to WBRZ's request of less than a penny a day per subscriber, won't Dish Network simply raise my monthly bill?

WBRZ has no control over Dish Network's, or any video provider's, rates or any decision to raise rates. As pointed out above, WBRZ is asking for just 3.4% of what Dish Network is already charging subscribers for the local channels package each month. You should judge on your own whether you think the 79+% profit margin Dish Network already makes on the local channels package warrants an increase in rates.

You can always get WBRZ's signal for free with the use of an over-the-air antenna or through your local cable providers in glorious High Definition in which Dish Network has no foreeable plans to provided in the future.

  6. What are my options for getting WBRZ programming?

Other cable and satellite providers will continue to carry WBRZ without interruption. Alternatively, you may use an antenna and receive WBRZ over the air free of charge.

7. How do I get in touch with someone at Dish Network if I wish to express my views?

You can call Dish Network's customer service center toll-free at 1-888-284-7116 or contact them through the Internet at ceoofdishnetwork@dishnetwork.com

8. Do I need to call WBRZ again after contacting Dish Network?

No. While we appreciate your input, and welcome your comments at dish@wbrz.com, it is not necessary to contact us after you have contacted Dish Network. Just make sure your voice is heard at Dish Network.  

9. Why is this happening to WBRZ but not the other television stations in the market?

WBRZ is a small, locally-owned and -operated company. We believe our programming, both our network programming and our award-winning news and weather reporting, is as valuable to the viewers in this market as similar programming may be to viewers in other parts of the country.  WBRZ is not privy to the negotiations with others in the market and perhaps in time, every station will have their time to negotiate with Dish Network. Congress has allowed this to occur knowing that the broadcasters’ content is what helps the distributors grow. That negotiation is private, however, since Dish Network has been in operation for many years and in Baton Rouge for two years, they have had the opportunity to cover their capital expenses and will have to explain to their viewers why 3.4% of their local fees is too much to pay to WBRZ.

10. This is about you making money isn’t it?

Money is important. Almost everyone expects to be paid for the work that they do.We produce local programming in the form of newscasts, specials that help community causes, and even local sporting events.  As ABC’s exclusive affiliate for Baton Rouge, WBRZ is the exclusive outlet for ABC programming. While we allow anyone to take the programming for personal use for FREE by using an antenna, we won’t allow anyone to take the signal and resell it to the public. But dish Network believes it should take our programming, charge people to see it, without compensating us for the programs.  We are fighting to protect our rights. We are fighting to receive fair compensation.

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