Disney vs. Dish: the Next Pay-TV Fee Showdown

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Sept. 6 (Bloomberg) -- On today's "The Scene," Horizon Media’s Brad Adgate and Bloomberg’s Alex Sherman discuss the negotiations for Dish to carry the Disney channels and the possibility of another major TV blackout. . They speak with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Stick in negotiations.

One of those channels is the 800 pound gorilla, espn.

Content is king, especially sports content.

There is no question the reason we are back on the air, getting fair value is because of the great content that cbs is providing.

At the top of the list of that content is the nfl's. there is no question that the fact that the deal was settled six days before the nfl's season had a great deal to do with our reaching a settlement.

Nothing like a little pressure.

Alex sherman and horizon media join us right now.

Do they have more leverage now?

All the stations do.

I think you have an argument with these mvpd's. it used to be that broadcast went over the airwaves, and cable companies did not have to pay for it because it was free to everyone.

But move is and others are saying, -- moonves and others are saying, no.

Yes been championing -- he has been championing this for years.

It has paid off for him.

They want congress to relook at these laws.

They realized it is not just going to be cbs.

It is going to be abc, and bc, everyone of these local affiliate townies out there -- nbc, every one of these local affiliates out there.

It was originally designed as a free product using airwave space -- which technically is property of the government.

Therefore, it should be free.

Cbs's spectrum is valued at $5.4 billion.

The public uses it for free.

At the end of the day, it costs money to produce a coffee can.

That is true.

They are a small media company.

[indiscernible] they have in working for years to get away from advertising as a primary source of their revenue.

Another way to do that is selling digital rights.

How does this change what bob eiger is going through right now?

He will want more money for it.

As brad just said, you are charging for digital rights.

Espn has this watch espn app, watch disney that allows subscribers of paid tv to watch programming outside the home on their phones and tablets.

Charlie ergen at dish is probably going to say, we want to do a deal with you.

You don't want to risk potentially losing espn, especially during football season.

Charlie ergen has said, one day there's going to be a paid tv company that will strategically say, it does not make sense for us to carry sports because it is too expensive.

If we got rid of the major expense of sports, we could offer a pay-tv bundle for much less -- that is the ultimate a la cart-ing a television.

It is a step towards that.

It is offering something that directv does offer.

They offer an entertainment package.

That is about $30 -- think of the leverage he has.

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

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