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DISH Network Inks Multi-Year Deal With CBS, Ends Blackout

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DISH Network Corp recently inked a multi-year program licensing deal with CBS Corp , after resolving a three-day blackout.

DISH Network’s customers were unable to view the Thanksgiving Day NFL matchup between Los Angeles Chargers and Dallas Cowboys, thanks to the blackout arising from a dispute over programming fees. The blackout affected 28 channels in 18 markets of 26 states, which are served by CBS-owned-and-operated stations.

The latest deal not only restores CBS’ local stations but also adds Showtime, CBS Sports Network, Pop, and Smithsonian Channel to the company’s satellite-TV service.

DISH Network claims that the short-term blackout has resulted in an extended deal. CBS is optimistic about its short-term and long-term economic and strategic targets pertaining to this deal.

The terms of the deal have been kept under wraps.

However, DISH Network failed to reach an agreement to bundle the CBS TV Network with its Internet TV service — Sling TV. It is expected that DISH Network will include Sling TV rights in its next program licensing deal with CBS.

Other Retransmission Conflicts

Conflict between TV broadcasters and pay-TV operators is not new in the United States. In October 2017, Verizon Communications Inc. (VZ - Free Report) dropped Univision Inc.’s Spanish language TV channels from its fiber-based FiOS TV network. Viacom and Charter Communications are still holding discussions to reach a negotiation. In November, The Walt Disney Co. (DIS - Free Report) and Altice USA jointly signed a new retransmission deal following a bitter dispute.

Price Performance

DISH Network's price performance has been disappointing in the past three months. The stock has lost 14% compared with the industry’s decline of 11%.

 

 

DISH Network currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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