HBO blackout could be start of trend: Dish Network

Dish Network turned off the lights on HBO and sister channel Cinemax early Thursday after the two sides failed to reach an agreement on their distribution deal.

Dish blamed the Department of Justice’s failed attempt to block the merger of AT&T with HBO parent company Time Warner, arguing that the combined company is already abusing its power. That decision is on appeal.

“Plain and simple, the merger created for AT&T immense power over consumers,” said Andy LeCuyer, Dish senior vice president of programming. “It seems AT&T is implementing a new strategy to shut off its recently acquired content from other distributors. This may be the first of many HBO blackouts for consumers across the country.”

An HBO rep countered that Dish “is making it extremely difficult, responding to our good faith attempts with unreasonable terms. Past behavior shows that removing services from their customers is becoming all too common a negotiating tactic for them.”

The blackout marks the first time in HBO’s 46-year history that it went dark on a pay-TV provider, HBO said. Of Dish’s 13 million customers, about 2.5 million subscribe to HBO or Cinemax, a source said.

A DOJ spokesman added: “This behavior, unfortunately, is consistent with what the Department of Justice predicted would result from the merger. We are hopeful the Court of Appeals will correct the errors of the District Court.”

Nonetheless, a person familiar with the HBO negotiations said the network offered Dish a deal extension, as well as “more favorable terms.”

According to the source, Dish didn’t bite and blacked out the channel — a tactic it has imposed before on CBS’s Showtime, Fox News, local stations from Turner, Tribune Media and most recently Spanish-language broadcaster Univision.

For Dish consumers trying to catch up on “Game of Thrones” reruns before the new season starts next year, HBO is urging them to log their complaints by calling 1-844-HBO-FOR-U or going to http://www.KeepmyHBO.com.