Dish Network Corp. (DISH) said Monday that Sinclair Broadcast Group Inc. (SBGI) has threatened to block Dish customers' access to television stations in 45 cities across the country unless Dish accepts a massive price increase. The retransmission consent agreement between Dish and Sinclair expires on August 15. If the companies fail to reach an agreement on price, Dish will no longer be allowed to carry Sinclair's signals.
Pursuant to the retransmission consent agreement, Dish carries 70 stations Sinclair owns or provides services to.
Dish noted that it has worked on retransmission contract negotiations with Sinclair for months, but that Sinclair is insisting on a rate increase that would force Dish to pay more for those ABC, CBS, FOX and NBC channels than Dish pays to any other broadcaster.
Sinclair also owns numerous stations such as CW and MyNetwork affiliates. Higher costs will translate into higher fees for customers.
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