Dish Said to Be in Talks With Viacom About Internet TV
Dish Network is talking to networks such as Viacom’s MTV about offering their channels over the Internet, a service that could shift the economics of the pay-TV industry, five people familiar with the plan said.
In addition to Viacom, the negotiations involve the Spanish-language broadcaster Univision Communications Inc. and Scripps Networks Interactive, owner of the Food Network and HGTV, said the people, who asked not to be named because the talks are private. The companies would offer an online product known as an over-the-top service, charging a lower price for a smaller bundle of channels viewable on a computer or tablet. Dish’s service would change the dynamics of the pay- television business, breaking up the bundles that force customers to pay for channels they don’t watch. It also gives Dish a way to avoid its biggest programming expense: sports. Walt Disney’s ESPN gets as much as $5.13 each month for every cable and satellite subscriber, compared with the industry’s average of 26 cents, according to SNL Kagan.