01.01.2006 22:45:00
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Lifetime Television Pulls Channels From DISH Network; Lifetime's Demand to Renew With a 76 Percent Rate Hike Would Result in Unreasonable Price Increases for DISH Network Customers
DISH Network's contract with Lifetime expired Dec. 31, 2005. DISHNetwork deeply regrets the disruption of service to customers, butprior to the loss of Lifetime Movie Network, Lifetime refused to offeran extension for continued negotiations. Consequently, DISH Networkwas legally prohibited from broadcasting Lifetime and Lifetime MovieNetwork.
Lifetime demanded an exorbitant price increase of 76 percent underthe contract term. If DISH Network capitulated to Lifetime's skyrocketpricing, unreasonable rate increases for DISH Network customers wouldresult. Lifetime is also insisting DISH Network force consumers to payfor a new channel with similar content to a channel already availableon DISH Network. In order to continue to bring customers theprogramming they want at a fair price every month, DISH Network mustsay NO to Lifetime's strong-arm tactics.
"While we are working hard to negotiate a fair contract withLifetime Television, we must also protect our customers fromoutrageous rate increases," said Eric Sahl, senior vice president ofProgramming at DISH Network. "We appreciate the relationship we havehad with Lifetime over the past 10 years and we hope they willreconsider their position and return their channels to our customers."
Below is a copy of a letter posted Dec. 31, 2005, onwww.fairsatellite.com from DISH Network Chief Executive OfficerCharlie Ergen in response to inaccurate statements appearing onLifetime Television's website:
Louise Henry Bryson
President, Distribution and Affiliate Business
Development Lifetime Television
Dear Ms. Bryson:
The statements on your website with respect to our dispute are
inaccurate. Specifically, you claim that DISH Network violated our
contract by taking Lifetime Movie Network off the air. As you are
aware the agreement terminated December 31, 2005 and Lifetime
refused to offer any extension prior to DISH Network's loss of the
network today (the date of the contract expiration). We are
confident we have not breached the agreement and welcome the
disclosure to the public, any portion of the contract that
demonstrates DISH Network is in violation of our agreement.
In addition, Lifetime's final demand prior to our loss of the
network called for a 76% rate increase under the contract term.
DISH Network hereby waives any right to confidentiality which may
exist with respect to rates under our existing agreement and the
proposed rates under Lifetime's proposal so that the public can
judge for themselves. We challenge Lifetime to likewise agree to
the release of that information.
While DISH Network desires to make Lifetime programming available
to its customers, we also must protect our customers from
exorbitant rate increases. We have valued our relationship with
Lifetime Television over the past 10 years and we are hopeful that
we can work together to restore Lifetime programming to DISH
Network customers.
Sincerely,
Charlie Ergen
Chief Executive Officer
DISH Network
In the meantime, DISH Network is offering its customers a freepreview of Women's Entertainment Network (WE), a channel whichprovides similar content to that on Lifetime.
For more information, visit www.fairsatellite.com.
About EchoStar
EchoStar Communications Corporation (NASDAQ:DISH) serves morethan 11.7 million satellite TV customers through its DISH Network(TM),the fastest growing U.S. provider of advanced digital televisionservices in the last five years. DISH Network offers hundreds of videoand audio channels, Interactive TV, HDTV, sports and internationalprogramming, together with professional installation and 24-hourcustomer service. Visit EchoStar's DISH Network at www.dishnetwork.comor call 1-800-333-DISH (3474).
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