Dish Sues Comcast's NBCUniversal Over Ads, Tweets
15 Mars 2016 - 9:30PM
Dow Jones News
Dish Network Corp. filed a lawsuit against Comcast Corp.'s
NBCUniversal on Tuesday, claiming that the TV networks owner
breached its contract with the satellite operator.
The suit, filed in federal court in the Northern District of
Illinois's Eastern Division, alleges that NBCUniversal violated its
contract with Dish by running ads and sending tweets about the
coming expiration of its carriage deal. The two sides have been in
negotiations about a renewal on Dish that would span NBC and
Telemundo broadcast stations and cable channels including USA,
Syfy, Bravo, CNBC and MSNBC.
The satellite provider said Tuesday that it expects to file for
third-party arbitration, which could prevent NBC from pulling its
programming feeds if the two don't reach a deal. Dish claimed that
under the 2011 deal Comcast struck with the government to buy
control of NBCUniversal, NBC is "forbidden from blacking out its
networks" if a pay-TV provider were to opt for binding
arbitration.
Dish said NBCU has been telling its subscribers that the
satellite operator may soon drop some of its channels, including
Bravo, Telemundo and USA. Dish included in the lawsuit several
pictures of ads on television screens and messages from
NBCU-related Twitter accounts that warn subscribers of an impending
drop.
Dish said its contract with NBCU only allows for such messaging
within 72 hours of a contract expiration, but NBCU started
publicizing a potential spat around Monday, March 14. Dish said the
agreement is set to expire more than 72 hours after Tuesday.
As a result of those messages, Dish said that "many subscribers"
have called to "ask questions or seek reassurance that the channels
will not disappear." Dish said its customer service agents have
been overloaded with calls, which increase the company's costs.
Dish asked the court for monetary damages of more than $75,000,
including the cost of the suit and any other relief.
An NBCU spokesman had no immediate comment.
Write to Shalini Ramachandran at
shalini.ramachandran@wsj.com
(END) Dow Jones Newswires
March 15, 2016 16:15 ET (20:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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