Commentary

Aereo Awaits Court Decision, Dish's New Platform Looks For Summer Attention -- Also With Some Controversy

While all eyes continue to be on whether Aereo will continue as a new TV distribution business, another less-touted new TV business model is also gearing up.

A decision on Aereo by the Supreme Court will arrive in mid- to late June. But soon after that, Dish Network’s new Internet TV service -- which will deliver live streaming TV networks -- will arrive. It positions itself as the first of its kind.

Dish Internet TV isn’t looking to radically usurp the TV business model a la the renegade Aereo, which insists it is just providing individual “digital” antennas to consumers -- which in turn means no money going to the networks for its programming.

Announcing its new Internet TV service, Dish struck a deal with the Walt Disney Company -- and now looks to do more, possibly with NBCUniversal, CBS and A+E Networks. The difference for Dish versus Aereo is that one assumes revenue/fees will be given to TV networks like any other modern TV programming deals, whether on cable networks, syndication, or subscription video on demand channels.

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Still, Dish isn’t completely without some controversy. Its AutoHop TV commercial skipping function has generated complaints and lawsuits from TV networks. Now, as part of its deal with Walt Disney, Dish will disengage the AutoHop function for Disney programming. Additionally, the two companies dropped legal actions against each other. The other key piece of the deal: Disney negotiated a traditional long-term carriage deal on Dish Network’s satellite service.

Aereo might not get the same results down the line. It doesn’t have the scale of a Dish Network. Still, should the Supreme Court go against Aereo -- or even for it -- will it look to find a way to make a deal with those TV broadcasters?

Perhaps as part of the new TV business models, some controversial leverage is good to have when making programming deals.

1 comment about "Aereo Awaits Court Decision, Dish's New Platform Looks For Summer Attention -- Also With Some Controversy".
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  1. Steve Symonds from Symonds Associates, LLC, April 24, 2014 at 3:45 p.m.

    So far all we've seen is a lot of smoke from the Dish PR machine about their "Internet TV" service. I don't buy for a NY minute that Disney/ESPN, CBS, A&E, et.al. agreed to allow Dish to become a Virtual MSO. If I were a betting man I'd give long odds that none of these programmers would be crazy enough to license the linear channels currently delivered by CATV/DBS/IPTV Operators to more than 90 million homes to now be delivered via OTT. This would instantly violate distribution agreements with all these Operators - and for no appreciable gain since subscribers are already paying for and receiving these very same channels.

    I suspect what's going on here is that Disney, et.al. have agreed to compose new OTT channels consisting of non-conflicting program elements for a non-competing channel - much like they did for the erstwhile MediaFLO service.

    We shall see. But hey I expect TV Watch to be an analyst in matters like this - not just regurgitate the PR its fed by the likes of DISH!

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