Can Disney Avoid a Blackout by Dish?

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Sept. 6 (Bloomberg) -- Bloomberg's Alex Sherman reports on Disney, owner of the most-expensive pay-TV channel in ESPN, facing a Sept. 30 deadline to reach a new agreement with Dish Network, the second-largest U.S. satellite-TV provider. He speaks with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

What the mac.

I am emily chang.

Now that the month-long fee fight between time warner cable and cbs is over, pay tv provider dish network had until the end of the month to reach a deal over retransmission fees.

My partner jon erlichman is nla with more.

Are we going for another cbs versus twc here cap?

I'm sure sports fans are hoping not.

Dish is known for being a feisty company, and of course disney has a big negotiating chip with espn.

Alex sherman covers the media business for bloomberg news.

Alex, these companies will generally tell you it is better if we can get this all results from -- behind closed doors, but there are always other factors at play.

What are you hearing about how this is going to play out?

Jon, this is an interesting one because for years and years -- dish chairman and cofounder charlie ergen has pontificated in its conference calls about one day there is going to be a hate provider out there that takes the stand against sports and says no more, we are not going to carry these sports channel, and we are going to offer you a bundle of channels without sports programming.

Here is dish's chance.

They have a chance right now to say no to disney and espn, which of course they risk alienating a lot of their 14 million customers because espn has monday night football and certainly a lot of those customers -- i spoke to an analyst and says even grandmas watch sports.

There will be a lot of customers that are potentially not too pleased with the idea of losing espn and abc for that matter.

The question is -- will dish finally take this stand?

Of course disney will be emboldened by the fact that cbs seems to have made out quite well in their month-long blackout with time warner cable because they got more or less what they wanted, including a lot more money for their programming.

Wife i love that you have been able to introduce the grandma factor to this story.

I met with a very high-ranking media executive this week, and they only mentioned one pay tv executive by name, and it was earlyrgen.

What is it about charlie ergen that put them in the showdown shoots?

One, he is a gambler.

He is to be a professional blackjack layer.

Two, he owns a lot of dish network still.

He may be a will to make it stand with other managers who may not have as much equity in the company themselves may shy away from it because they have a lot of investors and shareholders to answer to.

Three, i think he is a forward- looking guy.

That brings you to my next point here, which is if dish were to take a stand against disney, there are two real strategic regions that -- reasons that may make this something that is potentially more likely for death and another company.

One is that they have been public with saying that congress needs to read look at retransmission rules.

This is something that glenn britt also said.

Dish has added time and time again -- congress needs to retake a look at these roles so that pay tv providers are not have to pay as much.

The second one is that if they took a stand against disney, it would be a very public cry to say look, we need help, we cannot afford these costs, and that may make regulators look timely to an eventual dish- directv merger down the road, which is something that is often speculated.

That factor is that an important one to watch.

We'll have about 15 seconds, but espn will always say sure, we get paid a lot, but look at all the puny channels that you don't even watch it all that you are technically paying for.

This text has been automatically generated. It may not be 100% accurate.


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