Here’s something you rarely see in Big Media: Dish Network — one of the industry’s most frugal companies when it comes to executive compensation — cut the outlays for most top execs, with CEO …
The No. 2 satellite company hasn’t raised consumer prices since February 2011 following CEO Joseph Clayton‘s commitment that year to freeze consumer prices to January 2013. So rates probably would be rising now no matter what. But the steep jump in programming costs no doubt factored in to the increases that will hit most of Dish‘s 14M customers beginning January 17. The top-of-the-line America’s Everything Pak (which includes HBO, Showtime, and Starz) will rise $15 to $119.99 a month. Subscribers with the lowest-priced service, Smart Pack, will pay $29.99, up $5. Those with other packages also will pay an additional $5 a month. Dish is holding the line on the $10 service fee for its Slingloaded VIP 922 as well as the Hopper DVR and the $7 charge for the remote boxes it serves. Service prices will increase by $1 to $7 a month for the other VIP DVRs.
Dish Network CEO Joe Clayton says that ABC, CBS, Fox, and NBC shouldn’t have a problem with his company’s just-announced PrimeTime Anytime DVR feature that automatically records the networks’ primetime shows, holds them for a week, and also streams them on-demand to computers, tablets and other mobile devices. But he doesn’t know. “I haven’t personally talked to every single one of them, but I’m sure they’re aware of it,” he says. He adds that Dish shouldn’t have to worry that it’s treading on their right to license TV Everywhere rights, or look-back VOD service to cable operators and online destinations such as Hulu. “This is no different than an opt-in for any DVR,” he says. I’m told that lawyers for the networks are reviewing the Dish service to see whether there’s a problem.
Clayton was in a buoyant mood, though, as he officially disclosed the news that had already leaked about his company’s powerful new DVR product — called Hopper — and Dish’s corporate makeover.
UPDATE, 10:55 AM: Dish Network CEO Joe Clayton was clearly talking about Warner Bros, although he didn’t single the studio out by name in his company’s conference call with analysts. Warners wants to make Blockbuster wait 28 days for new home videos, leading the rental operation that Dish bought in April to go to the open market to buy DVDs of WB’s Horrible Bosses and Green Lantern. The studio withheld them, largely to help its efforts to promote VOD and sales of new discs that include UltraViolet’s digital streams to PCs and mobile devices. That “creates some challenges,” Clayton says – adding that Blockbuster rentals improve promotion for films as they move to TV and other markets.
As for the main satellite video business, Clayton says: ”Progress was made in the third quarter. Was it enough? No.” He vowed to step up Dish’s marketing, which he says “needed the most work,” adding that he’s “cautiously optimistic” there’ll be progress in 4Q. Chairman Charlie Ergen said that DirecTV’s strong 3Q results last week shows that “there’s still a big business out there for satellite television on a stand-alone basis…. We’re just not getting our fair share.” Dish would consider offering less expensive video packages.
Another layer of a cryptic Dish Network plan for its future was peeled back today when the nation’s second-largest satellite TV provider formally asked the U.S. government permission to offer a mobile high-speed Internet service. The move brings …