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DISH inks ACC deal, but blackouts continue with other providers

Although DISH Network Corp. now has an agreement with ESPN Inc. to air the ACC Network (US), the distributor remains at carriage impasses with several other content providers, including regional sports network Altitude Sports & Entertainment (US).

DISH is also still involved in contract disputes dating back to July with Meredith Corp. and the regional sports networks now owned by Sinclair Broadcast Group Inc.

Altitude

DISH and Altitude, the regional sports network home to the National Basketball Association's Denver Nuggets and the National Hockey League's Colorado Avalanche, could not reach a renewal deal. The content has been dark for the satellite TV provider's subscribers since early Aug. 29. Altitude also faces contract expirations on Sept. 1 with other major carriers, such as AT&T Inc.'s DIRECTV and Comcast Corp.

Matt Hutchings, the executive vice president and COO of Kroenke Sports & Entertainment LLC, which controls Altitude, disavowed in an interview the notion the network is trying to squeeze distributors for more money due to strong showings by the NBA Nuggets and NHL Avalanche during their 2018-2019 seasons. Altitude, whose territory extends into 10 states, also televises games from Major League Soccer's Colorado Rapids, the National Lacrosse League's Colorado Mammoth, plus college and high school sports.

Hutchings said Altitude is just seeking "a cost of living" bump, adding that Altitude is one of the lower-priced RSNs, but did not disclose rates. Kagan, a media market research group within S&P Global Market Intelligence, estimated the RSN's average monthly affiliate fee at $2.13 per subscriber in 2019.

Meanwhile, DISH, Comcast and AT&T are seeking to lower their rates, according to Hutchings, who said what the distributors are offering is not "financially viable."

"This comes down to Altitude demanding payment on a guaranteed minimum number of customers," said Andy LeCuyer, DISH's senior vice president of programming, in a statement. "We're no longer going to support the broken regional sports TV business model that seeks to have the majority of pay TV customers pay for the few who watch."

For its part, AT&T said its goal is to offer Rapids, Nuggets and Avalanche games "to anyone who wants them most at a value that makes sense to our customers overall. But we will not do bad deals on behalf of our customers, even if it means no longer carrying certain content."

Fellow distributor Comcast said over the past year, more than 95% of Altitude subscribers watched less than the equivalent of one game per week, and the price increase Altitude has demanded is not commensurate with its viewership.

"We have submitted a proposal to Altitude that we believe reflects the value of its programming and are hopeful Altitude will accept it, so we can continue to carry the network for those customers who want to watch it," Comcast said.

Hutchings claims Comcast's position that Altitude should be provided to only those who want to watch the RSN is "disingenuous." In fact, he noted that the structure Altitude wants to maintain is the "exact same model" Comcast utilizes with its own regional sports networks, which operate under the NBC Sports Regional Networks banner. AT&T also owns/operates regional sports networks.

Meredith

A spokeswoman for Meredith said negotiations are ongoing with DISH. After failing to reach a new retransmission-consent accord in mid-July, 17 Meredith stations — including affiliates of ABC (US), CBS (US), FOX (US) and NBC (US) — in 12 markets have remained dark for DISH subscribers.

With college football season getting underway in earnest and the NFL regular season scheduled for a Sept. 5 kickoff, the spokeswoman said the company is hopeful a resolution can be reached quickly.

Sinclair

As to the regional sports networks now owned by Sinclair, the services have been blacked out for DISH and virtual provider Sling TV subscribers since late July. Sinclair on Aug. 23 closed on a deal to purchase the 21 RSNs from The Walt Disney Co., which had to divest the outlets to gain approval from the U.S. Department of Justice for its purchase of most of 21st Century Fox Inc.

Sinclair President and CEO Chris Ripley did not directly address the carriage status of the 21 RSNs with DISH during an Aug. 29 press conference announcing the closing of Disney's sale of its equity interest YES Network (US), in which Sinclair will now hold a 20% stake. As for the RSN YES, which had been carried by Sling TV through July 26 but never distributed on the main satellite service, Ripley said Sinclair would be working with its management team on future distribution deals.