DISH-MEG Deal Ends 6-week Blackout - Analyst Blog

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DISH Network Corp. ( DISH ) - the second largest satellite TV operator in the U.S. - has renewed its television broadcast deal with Media General, Inc. ( MEG ), thereby ending a six-week blackout of Media General telecast across 17 U.S. markets. However, the terms of the deal remain undisclosed.

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. ( DIS ).

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 over 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 caused Time Warner Cable ( TWC ) 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 last quarter.

In the same time frame, DISH Network reported strong financial results outpacing both the top and the bottom line of the Zacks Consensus Estimate.

Currently, DISH Network carries a Zacks Rank #3 (Hold).



DISNEY WALT (DIS): Free Stock Analysis Report

DISH NETWORK CP (DISH): Free Stock Analysis Report

MEDIA GENL A (MEG): Get Free Report

TIME WARNER CAB (TWC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DIS , DISH , MEG , TWC

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