DISH Network L.L.C., a wholly-owned subsidiary of DISH Network Corp. (DISH), issued a statement in reaction to TEGNA Inc.'s (TGNA) threat to block DISH customers' access to 51 local channels in 39 markets nationwide.
DISH said that Only TEGNA can choose to black out channels. It is actively working to reach a deal before the contract expires. It has offered a contract extension to TEGNA, including a retroactive "true up" when new rates are agreed upon, to keep the channels available to customers in the event that we are unable to reach a deal by the deadline.
The "true-up" would ensure that TEGNA was made whole at the new rates for the period of any contract extension. TEGNA has not accepted that offer. The contract is set to expire September 30.
"Since we offered to retroactively true them up when new rates were agreed upon, TEGNA has nothing to lose and consumers have everything to gain from an extension of our existing contract that would allow negotiations to continue. Instead, TEGNA has not accepted our offer and has chosen to use consumers to gain leverage for the economic benefit of TEGNA, while potentially causing substantial harm and disruption to the lives of those very same consumers who ultimately will bear the brunt of the unfair price increases sought by TEGNA," said Warren Schlichting, DISH senior vice president of Programming.
DISH noted that the company and TEGNA have been making steady progress in their recent negotiations, and DISH was hopeful that a mutual agreement would be reached to renew carriage of the TEGNA local stations in due course.
"DISH has successfully negotiated agreements representing hundreds of stations in recent months that benefit all parties, including our viewers," said Schlichting. "We are unsure why TEGNA decided to involve customers in the contract negotiation process at a point when there is still time for the two parties to reach a mutually beneficial deal."
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