Dish is a shining example of the pay-TV industry’s greed-driven culture…
By Robert C. Kenny | October 24, 2014
Dish network, once a new, vibrant upstart in the U.S. video marketplace, is now a satellite television heavyweight, prominently known for poor service and its pervasive lack of concern for its own customers and employees.
Dish regularly generates harsh and unforgiving reactions from its customers and employees. The company’s track record is one of marketplace rule-breaking and misleading promotional tactics. Its behavior exemplifies the pay-TV industry’s penchant for exorbitantly high profits that do nothing to advance the public interest.
As Dish continues to seek statutory and regulatory advantages from both Congress and the FCC, consumers have a right to question whether an entity with a history of a fostering a poor work environment and providing dismal customer service should be granted government favors in the name of competition.
In 2009, 46 state attorneys general forced Dish to pay a $6 million settlement after officials found that the company used “improper” marketing and promotional tactics to sell its products and services. Dish was found guilty of hiding or omitting existing restrictions in satellite TV packages when advertising to potential or current subscribers.
This pay-TV provider has demonstrated a pattern of behavior that underscores an increasing disconnect from its customers in its search for greater profit margin. These actions and similar ones by other pay-TV providers makes clear why broadcast TV stations and cable channels find it increasingly difficult to reach agreement with Dish and others during negotiations for programming rights.
Dish is no stranger to stalled programming disputes that have led to the blackout of broadcast TV stations for their 14 million subscribers. Since January 2013, Dish has been directly involved in one-third of all reported retransmission disputes with broadcasters resulting in TV blackouts.
Moreover, Dish has been squarely in the middle of several programming disputes with cable networks in recent years. A memorable dispute between Dish and the AMC network in 2012 resulted in Dish customers losing access to the America Movie Channel, We TV and IFC for weeks.
Dish’s refusal to compromise continues to this day, evidenced by its ongoing stalemate with Turner Broadcasting over the rights to deliver Turner cable channels, CNN, TruTV, and the Cartoon Network, among others, to its customers. With an important election just days away, the timing of this stalemate couldn’t be worse for millions of Dish subscribers who may enjoy watching CNN for updates and breaking news on political races of importance to them.
Once again, Dish is the primary catalyst in causing TV programming blackouts in the marketplace, emphatically arguing that higher programming costs will be passed along to their customers.
Dish’s dispute with Turner Network could become increasingly heated in the next few weeks when additional stations, TNT and TBS, come up for renewal. While the dispute over rate increases amounts to pennies per customer, it could end up costing Dish subscribers access to NBA basketball games on those stations.
If Dish is really serious about finding cost savings for subscribers, it, along with all pay-TV companies, should give significant consideration to the costly impact excessive equipment rental fees are having on their customers and implement real solutions to reduce this charge and help lower monthly bills.
Dish is a shining example of the pay-TV industry’s greed-driven culture, and it needs to change.
Ironically, the company’s excessive anti-consumer behavior is helping fuel a major new push in Congress that could result in new and stronger consumer protections to guard against the confusing and deceptive billing practices of cable and satellite TV companies in America.
Congress, led by U.S. Senator Claire McCaskill (D-MO), is focused on bringing transparency and fairness to cable and satellite TV billing practices – an outcome that tens of millions consumers will whole-heartedly embrace across America.
Change can be for the better and we look forward to it.
* * *
Robert C Kenny is the Director of Public Affairs for TVfreedom.org, a coalition of local broadcasters, community advocates, network TV affiliate associations, and other independent organizations; he formerly served as Press Secretary at the FCC.
