Six months negotiations between CBS Corporation (NYSE:CBS) and DISH Network Corporation (NASDAQ:DISH) came to a boiling point this Friday when CBS pulled its stations from the satellite broadcaster’s menu. Fortunately, the two agreed on a new multi-year carriage deal that saw the return of CBS stations to DISH.
The 12 hour blackout affected 2 million of the 14 million DISH subscribers in 18 markets including New York, Los Angeles, San Francisco and Denver. The stations pulled from DISH network were CBS, CBS Sports and Showtime. CBS is the most watched broadcast network in the United States, so the blackout was a big headache for DISH. It is worth noting that CBS broadcasts the NFL and SEC football games, and that there are two big games to be broadcast this weekend, with one being a championship match. This means that the stakes couldn’t get any higher for DISH.
CBS has been busy prior to the blackout warning DISH customers that they won’t be able to watch this weekend’s matches. It encouraged them to send their complaints straight to DISH. CBS even went as far as assisting customers with information of how they can switch providers.
The new deal between the two networks covers the price DISH pays to CBS Corporation (NYSE:CBS) per subscriber, digital rights and the number of networks available to the satellite company. The financial terms reached in the deal have not been disclosed to the public, however.
This is not the first time DISH Network Corporation (NASDAQ:DISH) has been in such a situation. About two years ago, CBS, ABC, Fox and NBC sued the network over its AutoHop feature, which lets some viewers skip commercials. This irked the other broadcasters as advertisers were paying for these ads. DISH, then, reached a deal with ABC to disable the feature for the first three days of a show’s premier.
The new deal with CBS Corporation (NYSE:CBS) will see a show premier without the AutoHop feature for 7 days.
This article has been written by Amna El Tawil.