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FCC Demands the 'Dish' on Sling TV

Mari Silbey
1/16/2015
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Dish launched its online video service Sling TV last week in conjunction with the annual CES show in Las Vegas. The timing, however, has put Dish squarely on the FCC's radar. (See Dish Slings OTT Service – What It Means.)

As the Federal Communications Commission (FCC) tries to determine the potential impact of Comcast Corp. (Nasdaq: CMCSA, CMCSK)'s proposed takeover of Time Warner Cable Inc. (NYSE: TWC), the regulatory agency is looking for details on how online service providers are negotiating programming deals. With that goal in mind, the FCC sent a public letter to Dish Network LLC (Nasdaq: DISH) this week requesting that the satellite TV operator "provide copies of any and all agreements" made with programmers that are now part of the Sling TV service. These include A&E Networks, CBS Corp. (NYSE: CBS), Comcast, ABC Inc. , Scripps Networks and Turner Broadcasting System Inc.

Dish has until January 23 to comply with the Commission's request.

While the FCC has publicly stated that all documents will be treated as confidential, the programmers involved with Sling TV are no doubt unhappy to have their contracts placed under such scrutiny. Earlier complaints by media companies about FCC oversight of their distribution deals led to a pause in the agency's review of the Comcast/TWC deal. Ultimately, however, the FCC restarted the process, even as the US Court of Appeals for the District of Columbia continues to examine whether certain documents related to programming contracts should be released for regulatory evaluation. (See Mega Media Deals Back on the Clock.)

(Note: The FCC paused the merger shot clock again in late December for other reasons, but resumed its review again this week.)


Want to know more about OTT video? Check out our dedicated OTT content channel here on Light Reading.


As Recode noted, Dish is just the latest online service provider to come under the FCC's microscope. The agency has asked for similar information from Amazon.com Inc. (Nasdaq: AMZN), Google (Nasdaq: GOOG), Home Box Office Inc. (HBO) , Hulu LLC , Netflix Inc. (Nasdaq: NFLX) and others.

Dish, meanwhile, has made no secret of its opposition to the proposed Comcast/Time Warner Cable transaction. One of the company's primary arguments is that the planned merger of the nation's two largest cable operators could make it more difficult to secure online programming distribution rights.

— Mari Silbey, special to Light Reading

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pcharles09
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pcharles09,
User Rank: Light Beer
1/28/2015 | 10:34:57 PM
Re: Concern
@Phil_Britt,

Hmm. That's surprising. I'd think by now it wouldn't. But I guess it is signals traveling a long ways through many atmospheres.
Phil_Britt
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Phil_Britt,
User Rank: Light Sabre
1/22/2015 | 1:28:09 PM
Re: Concern
pcharles,

 

Storms may not be as bad on satellite transmissions as they once were, but friends with satellite (no cable option) routinely, but not always, have issues during storms.
pcharles09
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pcharles09,
User Rank: Light Beer
1/22/2015 | 11:59:53 AM
Re: Concern
@Phil_Britt,

I was told that with advancements made in satellite technology, storms aren't so detrimental to signals. Is that untrue?
Phil_Britt
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Phil_Britt,
User Rank: Light Sabre
1/22/2015 | 11:32:06 AM
Re: Concern
The performance question with satellite is huge, particularly in areas like the Midwest that are subject to thunderstorms. Losing entertainment programs is one thing, but losing the Internet is something else.
pcharles09
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pcharles09,
User Rank: Light Beer
1/18/2015 | 5:21:01 PM
Re: Concern
@danielcawrey,

Absolutely. No one wants to deal with extra equipment. Then there's also performance issues based on location.
MikeP688
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MikeP688,
User Rank: Light Sabre
1/18/2015 | 4:02:11 PM
Re: Concern
Tough is a "Good word".   Cord Cutting (which we have deliberated quite a bit here) is going to continue in a major way and we'll see further consolidations--the question is whether the FCC will be able to stay ahead of the "curve" as developments persisit. 
danielcawrey
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danielcawrey,
User Rank: Light Sabre
1/18/2015 | 1:53:07 AM
Concern
I can understand why Dish would be concerned about the merger. Already, they are probably under a lot of pressure to keep and also gain subscribers. I think satellite is a much tougher sell than cable these days. 
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