If content owners and distribution networks were firewalled, and if this FCC
were not corrupt, then these all-too-familiar MVPD spats would not work.
Presumably, HBO itself wants to get their content out to as many subscribers as
possible. To achieve this, HBO would make use of as many distribution options
as possible. If any middleman pulls the content, HBO could opt for direct
Internet distribution, or freedom to use other Internet aggregation sites. This
would not only discourage blocking HBO by the middlemen, but it would also
train consumers into bypassing the nuisance middlemen. And such trained
consumers would never go back.
In a more perfect world, HBO would never need to be corralled either by
Dish/Sling TV or by AT&T/DirecTV.
I think that the average consumer is far more intelligent that the clueless
clowns at this FCC. I think that when 22 million write in to voice support for
neutral telecoms, they are well aware of the alternatives. Only our crooked FCC
Chairman has the brass to promise the wonders of "new business models," from
non-neutral telecoms.
Bert
-----------------------------------------------------
https://www.tvtechnology.com/news/at-t-pulls-hbo-cinemax-off-dish-sling-tv
AT&T Pulls HBO, Cinemax Off DISH, Sling-TV
Move represents first time in HBO's history it goes dark on a major pay-TV
provider
Tom Butts Nov 1, 2018
ENGLEWOOD, CO--DISH has announced that AT&T has pulled HBO and Cinemax from its
satellite pay TV and Sling TV services due to what DISH calls "untenable
demands designed specifically to harm customers, particularly those in rural
areas, as well as damage competing pay-tv providers."
DISH is using the dispute to further its claims that when AT&T acquired
HBO/Cinemax parent company Time Warner earlier this year after winning an
antitrust suit filed by the DOJ, there were no guidelines set in place to
ensure that AT&T would treat subscribers to its channels fairly.
"Plain and simple, the merger created for AT&T immense power over consumers,"
said Andy LeCuyer, DISH senior vice president of Programming. "It seems AT&T is
implementing a new strategy to shut off its recently acquired content from
other distributors. This may be the first of many HBO blackouts for consumers
across the country. AT&T no longer has incentive to come to an agreement on
behalf of consumer choice; instead, it's been given the power to grab more
money or steal away customers.
The move constitutes the first time in its 40+ year history that HBO is going
black on a major pay-TV provider. For its part, AT&T defended itself, decrying
DISH's past negotiation tactics.
"During our 40 plus years of operation, HBO has always been able to reach
agreement with our valued distributors and our services have never been taken
down or made unavailable to subscribers due to an inability to conclude a
deal," HBO said in a statement. "Unfortunately, DISH is making it extremely
difficult, responding to our good faith attempts with unreasonable terms. Past
behavior shows that removing services from their customers is becoming all too
common a negotiating tactic for them. We hope the situation with DISH changes
soon but, in the meantime, our valued customers should take advantage of the
other ways to access an HBO subscription so they can continue to enjoy our
acclaimed programming.
DISH says the majority of its HBO subscribers are based in rural areas where
they are less likely to have access to high speed broadband, which would allow
them to substitute AT&T's "HBO Now" streaming service.
"AT&T's actions are a deliberate slap in the face to rural Americans," said
LeCuyer. "And furthermore, they are anticompetitive. AT&T, a company worth more
than $200 billion, is intentionally punishing those who don't have big-city
broadband access, in an attempt to push customers to the only other satellite
provider, its own DirecTV."
DISH says the market for HBO has changed since DISH last signed a carriage deal
in 2015: HBO set the market price at $15 per month with its launch of the
direct-to-consumer HBO Now service; and AT&T has announced plans to launch a
new direct-to-consumer HBO service next year.
"Usually when there is a programming dispute, we don't see eye to eye on rates;
but HBO has already set the going rate, so now they're seeking to extract money
a different way," said LeCuyer.
DISH says AT&T is demanding it pay for a guaranteed number of subscribers,
regardless of how many consumers actually want to subscribe to HBO.
"AT&T is stacking the deck with free-for-life offerings to wireless customers
and slashed prices on streaming services, effectively trying to force DISH to
subsidize HBO on AT&T's platforms," said LeCuyer. "This is the exact
anticompetitive behavior that critics of the AT&T-Time Warner merger warned us
about. Every pay-TV company should be concerned."
DISH said it would welcome "binding, baseball-style arbitration" to determine
the fair market value of HBO and Cinemax but that during the arbitration
process, AT&T would be required to restore its channels to DISH customers.
"Rather than trying to force consumers onto their platforms, we suggest that
AT&T try to achieve its financial goals through simple economics: if consumers
want your product, they'll pay for it. We hope AT&T will reconsider its demands
and help us reach a swift, fair resolution," added LeCuyer.
DISH said it would credit eligible Sling TV customers for time they do not
receive HBO or Cinemax.
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