Get ready to pony up if you bet that there’d be a settlement before AMC Networks’ $2.5B breech of contract suit against Dish Network goes to trial. Lawyers are scheduled to pick jurors tomorrow in a case that AMC says motivated Dish to drop the company’s channels in June. (Dish says AMC’s channels cost too much.) Beginning Thursday jurors will see a parade of media big shots explain whether Dish had a right in 2008 to terminate its 15-year deal to air the Voom Networks suite of HD channels. They were launched by Cablevision, but the Voom business entity was included with AMC last year when the cable company spun off its former networks unit. Cablevision founder Chuck Dolan is due up on Thursday followed by AMC chief Josh Sapan and, on Monday, Cablevision CEO Jim Dolan. Dish Chairman Charlie Ergen is expected to testify around October 3 when the defense presents its case.
The trial will revolve around a seemingly arcane question: Did Voom spend at least $100M on the service in 2006? Dish had a right to scrap the deal if Voom didn’t. AMC says it did if you include $12.4M in corporate overhead. Dish says no: the “service” only includes programming. The contract is vague on the definition, so the jury will have to make inferences based on other terms. But Dish enters the case with a potentially enormous handicap. New York Supreme Court Judge Richard Lowe III has found that Dish destroyed several emails pertinent to the case. One big question is whether he will tell jurors that they “may” infer that the emails would have helped AMC and hurt Dish, or whether they “must” reach that conclusion.
Several Wall Street analysts expected the companies to settle. And they still might: Susquehanna Financial Group legal expert Thomas Claps noted yesterday that Dish is vulnerable both because of the evidence destruction findings, and because AMC has a “stronger case” in the key debate over the definition of the $100M spending threshold. Meanwhile, AMC might warm to a deal that would return its channels to Dish’s 14.1M subscribers before October 14 when AMC’s series The Walking Dead returns for its third season.


Trial not available on DIsh Network…
lol!
AMC is supposed to be American MOVIE Classics. But they’re falling more and more into serials. Many viewers want movies, NOT serials. Serial episodes force you to keep up; often they don’t have a unified plot, but just ramble along (X-files is an example). Less money is spent on actors, costumes, photographic creativity, technology, etc. I think AMC should change their name, say, to American Drama Network. Or maybe American Serials Syndicate or “ASS.” Cordially, Baron von Whippet
DISH is going to win this suit. Overhead doesn’t count in these types of contracts.
OH, I see. So, you’ve seen the documents from both sides and know the ins & outs of this case???
All DISH has to do to win its case is to come up with an old VOOM programming guide, say from 2007 or so. No way did Cablevision lay out $100 million for programming or promotion. They had a comparatively small inventory of shows and movies that they ran to death and back again across all its channels. I remember MonstersHD and the Kung Fu channel would often run only two Z-grade movies a day back to back. You could see everything they had in the library in the course of a few days viewing.
The only thing I miss from the whole service were the classic car auctions on the collector’s channel.
As a long time Dish subscriber, 14 years, I hope the jury sees fit to ream Charlie a new one over this. Two Billion + in damages just might get his attention. The utter contempt that his organization (upper management) demonstrated for its customers was clearly illustrated through the multitude of outright lies they spoon fed us during the whole AMC thing last spring. They truly are a despicable lot.
From my seat up high in the bleachers there is not enough bad that can come Dish’s way in this courtroom. It might also seem just that someone other than a flunky should be called to account for the willful destruction of evidence. In most cases that might warrant a trip to the big house for an extended stay.
It would be nice in a few months to wish Charlie well and remind him not to drop the soap in the shower!
I agree – I think DISH is wrong and really needs to start thinking about their customers!!!!! HELLO DISH!!!!!???? They say I can still watch AMC by “purchasing” it someplace else…REALLY? I already pay for my Dish network WHY would I now have to go pay for something THEY should be providing to me as a subscriber? I should sue them for breach of MY contract with them as AMC was part of it and now they have taken it away!! They better reinstate AMC before The Walking Dead season starts or I may have to do that!!! Hello DISH – are YOU listening???
@Lazy000 . My thoughts exactly…..
I agree 100 percent! I’m sick of getting tied into contracts and then losing the channels that I actually watch. I too would like to have the ability to order a la carte, but I understand the network packaging systems. All I can say is I want AMC back! And before October 14th!!!!!
well is getting closer for me to drop dish network. they have till the 1st of nov. like i say on my other mails i will watch the walking dead whit or whit out dish. directv are giving me a good offer to go back whit them. told them to wait till the 1st of nov.
yeah they drop channels but our package prices dont go down…
I just signed up for dish and now I am seeing on my TV that Channel 12 will not be offered anymore. That is the main station I watch.
I will cancel the network and if I have trouble doing that I will go to court. This was false advertising at the home show.
My thoughts too…only angrier.
I’ve had DISH only a few months and up till now I have been happy with them, but it also angers me when I sign up for a certain package and they decide to drop it midstream. DISH should absolutely refund the portion of my bill for the time I do not have that service.
You have noo idea how mad I am that I can’t watch the walking dead tomorrow !
Subscribed to dish network last winter, didn’t even notice amc wasn’t offered. We were scrolling thru the channels this last week looking for amc to watch fear fest like we do every year. Not very happy with dish, considering finding another provider asap