Even though DISH Network is known as a very tough negotiator, they’ve been successful reaching agreements with distributors over the years and are able to retain their agreements and prevent subscribers from permanently losing access to channels. As a DISH Network customer, I cannot recall losing access to any channels except for periods of time during negotiations. I don’t claim to have a perfect memory, but I can say with certainty that I’ve never lost a channel that I liked to watch due to a dispute between DISH and a distributor.

This time it’s DirecTV’s turn in the hot seat. The nation’s largest satellite broadcaster is in the early stages of a dispute with Fox which may come to a head on November 1st when Fox says it will cut off access to a number of their channels and leave DirecTV users missing those channels unless an agreement is reached before that date.

The dispute between DirecTV and Fox started the way these types of disputes usually start. According to DirecTV, Fox is demanding a 40 percent increase in the fees that DirecTV pays to Fox that allow them to carry channels such as Fuel TV, FX, Fox Soccer, National Geographic, Speed and 19 regional sports networks.

Fox appears to be attempting to whip up customer anger with moves like taking out a full-page ad in the Los Angeles Times Sports section that is aimed at DirecTV viewers and warns them that they may soon lose access to coverage of sporting events carried on Fox-owned channels if an agreement between the two companies is not reached. Fox has run similar ads in other cities and in some cases is even stating that Fox broadcast channels might also disappear from DirecTV.

Chances are pretty good than an agreement will be reached before any channels are actually removed from DirecTV, but nothing – as they say – is certain except death and taxes.

It will be interesting to see how DirecTV plays their hand on this one. Will that take a more DISH Network-inspired approach and play hard ball with Fox or will they buckle under Fox threats and simply pony up the extra money Fox is demanding for their content? There will be plenty of DirecTV customers closely watching how this battle plays itself out.

Dispute Brewing Between DirecTV and Fox

DirecTV has plans to hire 100 new customer service reps for their call center in West Virginia and is offering employees extras such as a game room, internet lounge and fitness center.

DISH Network has plans to hire 300 new customer service reps for their call center in Littleton, Colorado. The new DISH Network jobs are reported to include benefits such as health and dental insurance, 401(k) plans, tuition reimbursement and free DISH Network service. DISH Network customer service reps also have the opportunity to earn substantial bonuses.

Some of the satellite broadcaster’s competitors are also making some changes and consolidating call centers. Time Warner cable has plans to close their call center in Wilmington, North Carolina. The closing is said to be eliminating 45 jobs. The company plans to consolidate the call center with one that is operating near Raleigh.

Some Time Warner employees from the Wilmington facility took up the company on an offer to transfer to the facility near Raleigh or other facilities while others decided to accept a lay-off.

Even with the state of the economy in recent years, hiring by satellite broadcasters may demonstrate that home entertainment is something consumers are reluctant to give up. Although the number of jobs being created by DISH Network and DirecTV are small when compared to the number of people without jobs in the country, it’s certainly good to hear that some companies are hiring U.S. workers.

DISH Network and DirecTV Hire New Customer Service Reps

The state of Ohio levied a 5.5% tax on satellite TV service. I don’t live in Ohio, but I suspect – if my experience is any indication – that this tax is something that is passed along to customers. As a consequence, customers likely saw their satellite television bill go up in 2003 when the Ohio legislature approved the new measure.

Although the new tax likely hit Ohio satellite customers in the pocketbook, cable TV subscribers were bypassed since the new tax was not imposed on cable operators. Needless to say, that was something that did not sit well with DISH and DirecTV but likely put smiles on the faces of cable executives who operate in Ohio.

The new tax law was challenged in court by DISH Network and DirecTV who initially met with success when a Franklin County court ruled in their favor, but an appeal eventually landed the case in front of the Ohio Supreme Court where the satellite operators’ luck ran out.

The court ruled 5-2 that the tax did not “discriminate because satellite and cable companies deliver TV through different means.” I think an appropriate action to that statement might be: “Huh?”

The court further stated that, “’The Ohio General Assembly imposed a sales tax that makes no distinction between local and interstate commerce, but rather distinguishes based on the mode of distributing television programming.” At the risk of sounding a bit redundant: “Huh?”

OK, so here’s what I’m getting out of this: You have two competing services; cable TV and satellite TV. Again, I do not live in Ohio, but I don’t think it’s a stretch to assume that some of the companies operating in Ohio are not based in Ohio. I know that DISH Network is based in Colorado and it appears that DirecTV us based in California.

Since cable TV and satellite TV are offering essentially the same service to the end-user, the satellite companies naturally felt singled out and discriminated against by the the new tax and sought to even things up in court.

The Ohio Supreme Court decided to maintain the status quo based on a decision regarding how the competing services broadcast their programming. That’s an interesting decision, if not a bit odd, but who among us mere citizens can question the unbiased opinion of a Supreme Court decision?

Although the Ohio Supreme Court’s explanation of their ruling may seem a bit lopsided to some of us, the state’s Attorney General, who was charged with defending the tax in court delivered the best punch-line when he was quoted as saying that his victory, “levels the playing field” in the subscriber TV market and ”recognizes and preserves the state’s ability to enact reasonable and fair taxes.”

Let’s see. We pay a tax on our satellite TV service, a tax on our telephone service, a tax on our gasoline, a tax on just about anything else we buy (here in New Hampshire we have no sales or income tax which is nice, but believe me, they make up for it with high property taxes!) or the income we earn and fat cats like Ohio’s Attorney General (can you even get elected or appointed to an office like that if you’re not wealthy?) pats himself on the back for defending a “reasonable and fair” tax on people who just want to watch TV?

Please Mr. Ohio Attorney General, I’d love to hear your definition of “reasonable and fair.” Furthermore, with all the taxes we pay, why is it that our Federal Government and most state governments are going broke? I’d love to hear him defend that in court.

By the way, the new tax has raked in a reported $44 million since it was imposed, but I’m sure that had nothing to do with the recent ruling.

DISH Network and DirecTV Lose in Ohio Court Ruling

Of the 53,000 complaints that were filed, 39,000 were filed against DirecTV and 13,000 were filed against DISH Network. DirecTV and DISH are the nation’s largest satellite providers with DirecTV boasting a total of more than 18 million customers, while DISH Network reports a total of over 14 million customers.

The numbers seem to lend credibility to DISH Network’s efforts to improve customer service in recent years.

Breaking the numbers down reveals that DirecTV’s 39,000 complaints represent about 0.21% of their customers while DISH Network’s 13,000 complaints represent about 0.09% of their total customer base.

These numbers show a significant difference in customer satisfaction between the two satellite providers if we base that conclusion on the BBB numbers. According to their figures, DISH Network is clearly in the lead.

Interestingly, the BBB also states that “Many complaints to BBB about satellite providers stem from steep cancellation fees.” In addition, they advise that, “The complex policies and fees that are sometimes unique to satellite service has led many customers to complain to BBB about the contractual obligations outlined—but often overlooked—in the fine print of their agreement.”

This advice is in line with what I advise for anyone signing up for any kind of service that may require a time commitment or any other kind of expectation that the consumers is required to satisfy. Satellite providers require contracts in order to prevent customers from switching services back-and-forth continually in order to take advantage of special promotions and offers that both DirecTV and DISH Network offer to potential subscribers.

Reading this recent BBB report seems to suggest that most customer complaints filed against satellite TV providers are a result of the customers not taking the time or making the effort to read the agreements they are signing.

It’s never a good idea to sign any kind of agreement with any company or individual before reading the entire agreement and making sure you understand it completely. That small step – although it could take some time – can be well worth it in the long run.

Better Business Bureau Reports 53,000 Complaints Against Satellite Providers

The lawsuit filed by DirecTV against DISH Network was a result of DirecTV’s reported belief that the ads were misleading. U.S. District Judge Paul Crotty denied DirecTV’s request for a temporary restraining order that would have halted the advertisements that DirecTV did not like.

Apparently, the judge left the door open for DirecTV to renew their request and better explain what exactly it is about the “Why Pay More?” ads that has DirecTV execs crying foul.

I would think that instead of running to court like a little kid running to mommy after skinning his knee, DirecTV would just come up with some ads of their own that even the score with DISH Network. That seems to be the way it usually goes. My earlier example of how Verizon and AT&T have been ripping each other to shreds is something that I think consumers are accustomed to.

As you might expect, company lawyers presented their cases in court and for now at least, DirecTV was told to pick up all their toys and go home. Perhaps they’ll prepare a better case, or if they smarten up, hire an advertising agency to come up with some ads that target DISH Network.

It’s nice to see a little common sense come from a case like this. It would be nice to see more silly lawsuits get thrown out like this, even if it is just for the time being.

Courtroom Score: DISH Network: 1, DirecTV 0

It’s being reported that DirecTV, the largest satellite TV provider in the country, is suing DISH Network for “false advertising.”

It’s all due to some commercial advertisements that DISH Network has been using that claim they are offering the same programming that DirecTV does for $24 less per month. At least that’s what the suit claims. The DISH ads feature a slogan that asks, “Why pay more?”

I’m a little surprised by this news, since I constantly see competing advertisements on TV for various products and services that tell completely different stories. An excellent example would be the latest Verizon Wireless vs.. AT&T commercials.

If I am not mistaken, Verizon started the battle by featuring a map of their wireless coverage compared to AT&T’s, which, if the Verizon ads were to be believed, looked pretty pathetic compared to how they depicted their own network.

It didn’t take AT&T too long to fire back, claiming that their wireless network was much better than Verizon was claiming, and if course, while they were at it, they declared that AT&T’s wireless network was better.

Well, obviously someone is not telling the truth. These two companies are tearing each other up with claims that are completely contradictory, yet I am not hearing any reports of AT&T suing Verizon or vice versa.

As far back as I can remember, competing companies have used advertising that oftentimes shed a rather unflattering light on on another, but I don’t think they spent a lot of time suing each other. It seemed that was just the way the advertising game was played.

It will be interesting to see how this one plays out.

DirecTV Suing DISH Network

It appears that the top satellite TV providers are not about to take this move lying down. In a rare spirit of cooperation, DISH Network and DirecTV have joined to file suit against Massachusetts, calling the new 5% tax “discriminatory.”

The state does impose a tax on cable TV companies and probably other utilities as well, since their lines have to be routed along streets and roads that are considered public property. The satellite companies believe ” and I agree ” that since they are not making use of public property, there are no grounds for the state to impose such a tax.

If the state of Massachusetts is going to start taxing the electromagnetic spectrum, they better figure out a way to start taxing people who watch or listen to any broadcast that is not carried by wires. Perhaps that can add a little bit onto their “excise tax” that all owners of motor vehicles have to pay (at least when I lived there) if the vehicle in question is equipped with a radio!

Apparently, greedy politicians in Florida, Ohio and Tennessee have imposed similar taxes on their residents. Legal action against those states is pending.

Hopefully, the courts will see the flawed logic behind these taxes and abolish them.

I suppose this is what we should expect from politicians when the economy tanks. People are losing their jobs and their homes and they decide to raise taxes. That will be a big help for a lot of struggling families, I’m sure.

DISH Network and DirecTV Protest Massachusetts Money Grab

Who would do such a thing? Not surprisingly, it’s the feds. Sticking their noses in where they don’t belong as usual. Seems that Congress  passed a law back in 2004 which mandated the local programming that satellite broadcasters could provide to all of the counties in the country and left it up to Nielsen Media Research to figure out which local channels each county should be allowed to receive.

For whatever reason, now is the time that DirecTV is being forced to act in Adams County and a lot of the residents do not agree with Nielsen’s conclusion. It appears that Adams County lies pretty close to being in between Madison and Wausau, but I don’t live in Wisconsin and don’t pretend to know what’s best for viewers in Adams County.

It’s not as if these subscribers are asking to receive local channels from Los Angeles or something, so why should they not be able to choose which market they want to receive local channels from? It appears that they are local to both market.

I presume the government, in their infinite wisdom, had the answer. I just don’t expect it to make much sense.

For more details, see WiscNews.

Whatever Happened To Customer Choice?

Some Bruins games are set to be broadcast on the Versus channel instead of NESN, where fans are used to seeing their team play. Versus, owned by cable television giant Comcast, is embroiled in a dispute with DirecTV over the satellite broadcaster’s right to carry the channel as part of their programming line-up.

DirecTV is well-known as a favorite among satellite customers who are sports fans. Their “Sunday Ticket” football offering is very popular with the Sunday afternoon football crowd. DISH Network recently inked a deal to begin carrying the NFL RedZone channel which has upped the ante a bit in DISH’s bid to rival DirecTV’s sports programming. Many football fans who subscribe to DISH Network seem to be very happy about the new addition.

The disagreement between DirecTV and Comcast is over money (what else?). DirecTV claims Comcast  is trying to dramatically increase the price they will have to pay for the privilege of carrying Versus, while Comcast says the price it is offering DirecTV is the same price currently being paid by DirecTV rival DISH Network as well as Cox cable.

This is beginning to sound a bit like some of the drawn-out feuds that DISH Network is well-known for.

Knowing cable companies as I do (I had cable TV for a decade or so before switching to DISH), it’s easy for me to pick sides on this one. In my experience cable companies are notorious for price increases, which leads me to doubt Comcast’s story and believe what DirecTV is saying about a big price increase. I’ve been on that side of the table when dealing with cable companies as well. Unfortunately, I did not have the clout that would afford me the opportunity to negotiate a better price.

DirecTV Squabble With Comcast Has Some Boston Hockey Fans Seeing Red

Cable company customers in California (and many other states) are required to pay a tax as part of their service, which is due to the fact that delivering cable programming to customers involves stringing wires on telephone polls or underground, which involves the use of public property, including streets.

The satellite companies, who do not encroach on public property in order to deliver programming to their customers, say that taxing them does not make sense. They do not depend on access to public property. Seems like a pretty logical argument to me.

The big cable companies do not let logic stand in their way, however, and I’m sure the big donations they have made to various legislators has no connection to their efforts to tax their competitors. Campaign contributions of $340,000 were handed out by the “cable association” in California between January, 2008 and June 30. In addition, three of the big cable companies, Comcast, Time-Warner and Cox made nearly $1 million in campaign contributions during that time.

Kind of looks like the cable industry was trying very hard to make friends in the right places.

The cable companies claim the new tax on satellite service would help to “level the playing field.” Well, that’s a pretty bogus argument when you consider the fact that the cable companies can also offer high-speed internet and telephone service in addition to cable TV. The satellite companies cannot offer those services without partnering with other companies like AT&T, which once had a partnership with DISH Network.

It appears to me that the extra services that the cable TV companies are able to offer make for a significant advantage when compared to their satellite rivals. Still, new customers continue to sign up for satellite service.

To some of us, a tax on satellite service seems ludicrous. Still, some states have already approved these new taxes. Massachusetts, a state that never met a tax it didn’t like, has already done it. Other states are considering it as well. Hopefully, the people of California will be able to put a stop this money-grab.

See the original story on the L.A. Times for more information.

Cable Companies Grease Political Palms To Push Satellite Tax In California