Lifetime makes bid for airtime
With support of women's groups, network runs ads to put pressure on Dish
Joyzelle Davis, Rocky Mountain News
Published January 12, 2006 at midnight
Lifetime Television has gone on the offensive in its dispute with EchoStar Communications' Dish Network.
Lifetime, which Dish yanked from its service on New Year's Eve after both sides couldn't reach a new contract, ran a full-page ad in Wednesday's The New York Times and in the Rocky Mountain News and The Denver Post signed by 50 women's groups urging the satellite-television service to put Lifetime and sister channel Lifetime Movie Network back on the air.
Lifetime also plans a rally in Denver's Civic Center today.
Dish claims that Lifetime, which is jointly owned by Walt Disney Co. and the Hearst Corp., demanded a 76 percent increase in fees over three years, while most cable programmers increase their rates 8 percent a year.
Lifetime Chief Executive Betty Cohen counters that its proposed increase, which amounts to 4 cents a month per customer, reflects "our growing value as the most widely viewed women's network" and is still below rates paid for less popular networks.
This isn't the first time that Douglas County-based Dish, which prides itself on being the lowest-cost all-digital network, has pulled a network from the airwaves after objecting to fee increases. Sports network OLN has been off Dish since October, and Dish pulled Viacom's networks for two days in 2004.
"Lifetime has a better angle than most other programmers" who've had a dispute with Dish, said Bill Jacobs, an analyst with Harris Associates in Chicago. "They can say that you're discriminating against women and stifling women's voices."
Both sides continue to negotiate, which is an improvement from last week when Lifetime denied Dish's statement that the parties were still talking.
Mark Cicero, a spokesman for EchoStar, said "meaningful negotiations have taken place over the past few days" and declined to provide further detail.
Dish is well aware that if it "accedes" to any significant rate hikes, the other 178 channels carried by the service will demand similar terms, said Jimmy Schaeffler, an analyst with the Carmel Group.
The "open letter" to Ergen, which was signed by leaders of groups including The Breast Cancer Research Foundation, National Organization for Women and the YWCA, said that EchoStar is "denying our members and your subscribers critical information and inspiration they want and Lifetime Networks provide."
Rita Smith, executive director for the Denver-based National Coalition Against Domestic Violence, said she was contacted by Lifetime last week to sign the letter and speak at today's rally.
She said that Lifetime "is not just entertainment" and provides education on women's issues beyond television, including sponsoring a week of information sessions on domestic violence for Congress.
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