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AMC Channels Back On Dish As DBS Provider Settles Voom Suit

AMC, Cablevision Get $700M in Cash 10/21/2012 5:30 PM Eastern

AMC Networks and Cablevision Systems on Sunday said they settled their suit with Dish Network and that the programmer's networks are returning to the satellite carrier's subscribers.

Dish is paying $700 million in cash to Cablevision and AMC to resolve the case, which revolved around carriage of Voom, a high-definition programming service created by Cablevision's former Rainbow programming arm. AMC claimed Dish breached its distribution contract by ending carriage of Voom. 

Dish, then part of EchoStar, owned a 20% stake in Voom, but is giving that up and will retain none of the $700 million settlement.

Moreover,Dish has entered in to a long-term distribution agreement with AMC Networks to again carry AMC, which televises Emmy winners Mad Men and Breaking Bad and popular zombie series, The Walking Dead, IFC, Sundance Channel and WE TV. Those channels have been off Dish since the summer. Dish is also restoring Fuse, owned by The Madison Square Garden Co., and controlled by the Dolan family that also owns Cablevision.

"We are glad to have settled the case and reestablished our long-term relationships with AMC Networks and Cablevision," said Dave Shull, senior vice president of programming at Dish, in a statement. "This multiyear deal delivers a fair value for both parties and includes digital expansion opportunities for AMC Networks' programming."

Dish said that as part of the agreement, Dish will receive 500 MHz of wireless multichannel video distribution and data service spectrum licenses that cover a population of 150 million in 45 DMAs including New York, Los Angeles, Chicago, San Francisco and Philadelphia.

"We are glad to partner again with Dish Network and are delighted to bring back our popular channels and programming to their customers," Josh Sapan, president and CEO of AMC Networks, said in a statement.

After payment of the cash settlement is received, the parties will file a joint stipulation to dismiss the lawsuit with prejudice, Cablevision said. The allocation of the settlement proceeds between Cablevision and AMC Networks will be determined pursuant to the existing agreement relating to this litigation between the two companies.

 

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