Dish will charge extra for broadcast channels in new OTT package, report says

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.

For more:
- read this Variety story

Special Report: Cord maybes: Pay-TV chases millennials with OTT services, but success is hardly guaranteed

Related links:
Dish Network scores rights to launch ESPN, Disney on OTT service
AT&T trieds to lure cord-nevers with $40 intro bundle
Dish inks Scripps renewal, adds HGTV, Food Network, other channels to OTT lineup
Sony says it's still 'on track' to launch OTT pay-TV service by year's end

Suggested Articles

The media consolidation wave looks like it will just keep rolling with MGM as a potential next target to get swept up in its wake.

TV[R]EV's Alan Wolk covers Netflix's new measurement standard and Comcast's broadband subscriber growth for Week In Review.

Ampersand today launched a new audience-based ad planning, buying and measurement platform.