Deal of a Lifetime

[SOURCE: Broadcasting&Cable, AUTHOR: John M. Higgins]
Lifetime Television’s bitter fight with EchoStar Communications, which refused to carry the channel, has spilled out into full-page ads, articles and cable conversation everywhere. But the “Drop DISH” campaign is not the most interesting part of the dispute. Hearst-Argyle Television, whose controlling shareholder Hearst Corp. also owns 50% of Lifetime (The Walt Disney Co. owns the other half), has secured a surprisingly lucrative deal with DBS operator EchoStar. In exchange for the right to retransmit the signals of the broadcaster’s TV stations in local markets, EchoStar has agreed to pay Hearst-Argyle around 50¢ per subscriber monthly to carry its stations. Stand-alone station groups will cheer. Many have already been collecting retransmission-consent fees from EchoStar and DirecTV, but the rate has been more like 15¢-20¢ monthly. Why did EchoStar pay so much? Partly to rob Lifetime of a strong weapon.
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