DISH Network Corp.
) - the second largest satellite TV operator in the U.S. - has
renewed its television broadcast deal with
Media General, Inc.
), thereby ending a six-week blackout of Media General telecast
across 17 U.S. markets. However, the terms of the deal remain
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DISH Network's agreement with Media General had expired in June.
However, both the parties extended their agreement for three
months in order to avoid further channel blackout. Even after the
contract extension, both failed to reach an agreement over the
transmission fees, which had compelled the satellite giant to
drop Media General's programs from its list.
Last month, DISH Network extended its television broadcast deal
with TV network major
Walt Disney Co.
In the third quarter of 2013, DISH Network gained around 35,000
pay-TV subscribers against a loss of 19,000 subscribers in the
year-ago quarter. Moreover, the company exited the quarter with
approximately 14.049 million pay-TV subscribers, up 0.05% year
Hence, we believe that renewing agreements with Media General and
Disney will not only avoid complete channel blackout but will
also minimize subscriber loss.
Demand for higher service renewal fees by CBS Corporation had
Time Warner Cable
) to drop the former's channels from its list. However, the cable
company eventually renewed the service at a higher rate.
Nevertheless, the company suffered massive subscriber loss in the
In the same time frame, DISH Network reported strong financial
results outpacing both the top and the bottom line of the Zacks
Currently, DISH Network carries a Zacks Rank #3 (Hold).