Dish, NFL Net Both Claim Victory In Court Ruling
Trial, Over Net's Migration To Lower Tier, Scheduled For June
By Linda Moss -- Multichannel News, 1/14/2009 8:31:00 AM
A court has refused to immediately order Dish Network to put NFL Network back on one of its most widely distributed tiers, the satellite company said Tuesday.
However, New York State Supreme Court Judge Richard Lowe also ruled that the action that prompted Dish to move NFL Network – the network’s simulcast of a historic New England Patriot-New York Giants game in December 2007 – “did not trigger the specific contract provisions allowing EchoStar to drop the NFL to a lower level of service last February,” NFL Network said in its own statement Wednesday.
“This is an important ruling for us.” NFL Network President Steve Bornstein said in a prepared statement.
Lowe’s decision is expected to be unsealed Thursday, according to the NFL Network. A trial on the case has been scheduled for June.
NFL Network filed suit against Dish Network almost a year ago after the satellite provider moved the network to its America’s Top 200 tier on Feb. 20 last year, resulting in the sport service losing about 4 million subscribers.
“We are pleased that the court denied the NFL Network's motion for summary judgment to enforce the 2006 agreement between the parties,” Dish Network said in its prepared statement Tuesday night. “As a result of the ruling, the NFL Network will continue to be offered to Dish Network customers in only our AT200 and AT250 packaging tiers. This will give our customers a choice of programming packages and will not burden all our customers with the cost of the NFL Network."
But NFL Network accused Dish Network of issuing “a highly misleading statement” on Lowe’s ruling.
According to NFL Network, “The court decision referred to in that statement actually granted summary judgment to NFL Network on the key issue that led to this dispute.
The court ruled that the simulcast of the historic Patriots-Giants game in December 2007 did not trigger the specific contract provision allowing EchoStar to drop the NFL Network to a lower level of service last February.”
Dish Network pulled NFL Network from the “free preview” in is America’s Top 100 package last year, moving it to its AT200 tier, in response to the network’s decision to simulcast a Dec. 28, 2007 game that featured the then-undefeated Patriots against the Giants on CBS and NBC.
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The price Programmers charge Cable and Satellite companies for the channels is based on the number of customers those channels reach. By reducing the number of NFL network customers by 4 million, Dish Network is able to keep their overall cost down. The AT100 has limited sports programming in it and when asked, I would bet that the vast majority of AT100 customers couldn't care less about the NFL network. I do agree that the "free preview" angle is weak though.
D Peterson - 1/19/2009 12:56:27 PM EST -
The NFL should eliminate the "exclusive rights" to the Sunday Ticket package from DirecTV and make it available to Dish Network. I guess the NFL does not want the extra revenue that Dish will give them. (See MLB Network and the Extra Innings package, also.) Charge us the same price and I bet you Dish Network's revenue will go through the roof!
Craig Prager - 1/15/2009 8:22:00 PM EST -
I love how Dish Network claimed NFL Network was in "Free Preview" mode for the packages, yet all marketing materials from them flat out said that it was part of the package. That's like advertising HBO as part of AT100 and using it to market the AT100 package to new customers whenever there's a free preview. And I also love their claim that it was to prevent them from passing the cost to lower tier subscribers, if that were true they should have had a price drop once it was removed from those packages...
BS - 1/14/2009 2:13:00 PM EST
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