A top executive of DISH Network argued on Monday, March 26, that AT&T’s planned purchase of Time Warner Inc would give AT&T too much power to block competitors’ access to crucial content.
The US government is seeking to stop the US$85 billion deal, arguing that it would hurt consumers. Monday’s testimony was the second day of the trial that is due to last six to eight weeks.
Testifying for the government, Warren Schlichting, who negotiates to buy programming for DISH’s satellite and its Sling internet business, said that his company needed to have the rights to broadcast some Time Warner content, especially news like CNN and sports, like college basketball’s March Madness, in order to attract and keep subscribers.
“These negotiations are tough,” said Schlichting. “That’s so even without the merger. Turner has a good negotiating team. With the merger, all the incentives change, and we have one of our most important licensors teaming up with our biggest adversary. I just don’t know what incentive Time Warner would have to get a deal done.”
By adversary, he’s talking about DirecTV, which is owned by AT&T. Schlichting’s point is that if AT&T’s Time Warner can’t get to a deal with DISH, at least AT&T would know that it might get DISH customers to defect to DirecTV.
“DirecTV has a national service,” testified the DISH executive. “It is more lucrative to take subscribers than to collect programming fees. … In a typical programming negotiation, they will say they want every one of their networks distributed broadly with a rate hike per subscriber. This time [after the merger], I just don’t see them having any motivation to move [off such demands].”
Full Content: Hollywood Reporter
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