Dish Network President and CEO Joseph P. Clayton spoke out on Monday to talk about the company’s new DVR program and other platforms. Unfortunately, that good news came with some underlying bad news. Clayton also spoke about how rising costs might effect Dish Network customers, soon. With television deals continuing to cost providers more and more money, Clayton says the company may have to choose between carrying less channels and increasing the average cost for a package to over $100 a month.
Deadline is noting that the presentation was more geared toward Dish Network’s upcoming marketing plans, but although his comments were more off-handed than specific, Clayton’s envisioning of the future of his company is extremely similar to Time Warner’s similar warning that channels may have to be dropped in the near future. In Time Warner’s case, the company said they would be willing to drop some bigger channels, including Lifetime and even subscription cable network Starz, and with complicated contracts and carriage deals, who knows what channels might find themselves in trouble with the Dish Network.
Although I think many people would be fine with losing some television channels, viewers and companies are reaching a tenuous period in cable and satellite history. With other outlets for programming, including online streaming and venues like Netflix, traditional television providers are more vulnerable than they used to be. Instead of fighting for consumers, hinting at channel layoffs makes the providers look a little like bullies who are losing ground and don't know how to respond. There’s no doubt that some company or other will step in to pick up the slack, and whether that ends up being other cable or satellite providers or entirely new sorts of television outlets remains to be seen.
