DISH Goes to War With Local ABC Affiliate, Arms Customers With Digital Antennas

Financial disputes between broadcast or cable networks and pay-television providers have often resulted in channels going dark in local markets. Cable and satellite companies pay each channel a fee in order to rebroadcast it. This can be as small as a fraction of a cent for obscure channels to about $8 per subscriber for ESPN. The numbers vary deal to deal, but without a such a "carriage" agreement, the pay-TV company can no longer offer the channel or channels in question.

Generally, these negotiations are a game of chicken. The network tells its viewers their satellite or cable provider is at fault while the provider blames it on the channel being greedy. For the viewer, it's not really about who's to blame, because no matter which side is stopping a deal, the result is the same -- not getting the channel.

In a carriage dispute in Rhode Island between DISH Network (NASDAQ: DISH) and the local ABC affiliate, the satellite company has a novel approach. It's playing hardball with the network by offering its subscribers free antennas that would allow them to pick up the ABC station over the air (OTA), according to MultiiChannel News.

Source: Fool.com