Media pundits have questioned how Dish Network (NASDAQ: DISH) is going to cram pricey cable channels like ESPN into its upcoming OTT service, and also include the major broadcast networks in a package that cost only around $30.
According to a Tuesday Variety report, the satellite operator isn't going to try. The new service, speculatively titled "Nutv" and set to launch by the end of the year, will offer broadcast channels based a premium charge, sources tell the trade paper.
Speaking to an executive ostensibly close to the negotiations, Variety says that Dish wants to "offload" retransmission fees for local TV. "Their approach is going to be, 'If you need over-the-air (broadcast TV), great, we'll sell it to you; if not, you can use an antenna,'" the executive told the trade.
Whether Dish can convince broadcasters to go with the plan remains to be seen, with one broadcast executive also telling Variety, "Good luck with that."
To launch its new service, Dish has secured content rights deals with Disney, A&E Networks and Scripps Networks. Analysts tell FierceCable that programmers have compromised on their bundling demands to help Dish launch a leaner, more cost-effective service targeted at millennial-aged consumers. However, programmers are not offering price discounts on their channels.
- read this Variety story
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