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Criticism of Dish Network
Dish Network has been the subject of a number of criticisms relating to management of advertising, disclosure of fees, telemarketing, employee rights and programming disputes; a number of which resulted in lawsuits. In the early 2000s, Dish Network received criticism regarding controversial technology and carriage disputes with programming providers. Most notably, when the Hopper digital video recorder provided an easy way for viewers to watch certain programming without commercials, major networks sued Dish Network.
Dish Network's Hopper digital video recorder, announced in January 2012, led to controversy over a feature, called "AutoHop", which allows viewers to watch some programming without commercials, subject to time restrictions.
AutoHop is an extension of the DVR's prime time recording capability. When activated, the feature records but hides commercials, giving viewers the option of viewing primetime programming on the four major networks commercial-free. Commercials cannot be skipped until 1 am Eastern Time, and the viewer must choose to do this. Recorded programs are available for eight days after they have aired. News of AutoHop met with an immediate, polarized response. The feature was deemed a "dream come true" for consumers, but for networks, a nightmare undercutting the revenue model. Dish asserted that AutoHop would encourage its customers to sample new programming. Leslie Moonves, CBS chief executive, asked rhetorically how he is to produce CSI without the revenue stream of commercials. News Corporation refused to accept Dish advertising for the device. A Forrester Research analyst said the move demonstrated Dish's desperation to keep customers at a time when alternative programming is readily available via the Internet.
The controversy surrounding AutoHop contributed to one small-market station group, Hoak Media Corporation, removing its 14 stations channels from the service on June 6, 2012. In negotiations, Hoak sought a 200 percent increase in carriage fees and the dropping of the AutoHop feature. David Shull, Dish senior vice president of programming, accused Hoak of effectively telling Dish's customers that they must watch commercials, disrespecting customer control over its services. Eight days later, the two companies announced a distribution deal. Terms were not disclosed.
On June 27, 2012, Dish Chairman Charlie Ergen told the United States House Subcommittee on Communications and Technology that the feature would enable parents to protect their children from alcohol and fast food advertising. The next day, Michael Petricone of the Consumer Electronics Association spoke to the subcommittee, likening Hopper to earlier time shifting devices. He argued that Hopper is legal and that AutoHop entices people to watch more television, thereby expanding television's market.
CNET was also forced by parent company CBS to disqualify the newest Hopper with Sling model from the CES Best in Show award for 2013 because of its active litigation with the company. CEO Joe Clayton said that Dish was "saddened that CNET's staff is being denied its editorial independence because of CBS' heavy-handed tactics." Dish Network directly attacked CBS for its decision in an advertisement for the device on its website. The ad proclaimed the DVR as being CNET's "Best in Show", but with a footnote stating that "CBS will go to any lengths to keep you from enjoying ad-skipping technology—even censoring its own writers and throwing out their decision to name Hopper 'Best In Show.' Your vote is the only one that really matters."
Dish Network independent dealers have repeatedly been charged and fined for employing illegal telemarketing tactics, such as violating do not call lists and making calls in which a live telemarketer does not connect promptly after the call is answered. Dish Network terminated agreements with some independent dealers in relation to these charges. In March 2009 the Federal Trade Commission charged Dish Network and two of its dealers with multiple violations of the FTC's Telemarketing Sales Rule and the Telephone Consumer Protection Act of 1991.
In January 2004, thirteen states charged that Echostar, then the parent company of Dish Network, had not disclosed termination fees to potential customers and had debited customers' bank accounts for hidden fees. The company settled the lawsuit, paid $5 million, and promised to disclose all terms prior to signing contracts with potential customers.
Criticism of Dish Network
Dish Network has been the subject of a number of criticisms relating to management of advertising, disclosure of fees, telemarketing, employee rights and programming disputes; a number of which resulted in lawsuits. In the early 2000s, Dish Network received criticism regarding controversial technology and carriage disputes with programming providers. Most notably, when the Hopper digital video recorder provided an easy way for viewers to watch certain programming without commercials, major networks sued Dish Network.
Dish Network's Hopper digital video recorder, announced in January 2012, led to controversy over a feature, called "AutoHop", which allows viewers to watch some programming without commercials, subject to time restrictions.
AutoHop is an extension of the DVR's prime time recording capability. When activated, the feature records but hides commercials, giving viewers the option of viewing primetime programming on the four major networks commercial-free. Commercials cannot be skipped until 1 am Eastern Time, and the viewer must choose to do this. Recorded programs are available for eight days after they have aired. News of AutoHop met with an immediate, polarized response. The feature was deemed a "dream come true" for consumers, but for networks, a nightmare undercutting the revenue model. Dish asserted that AutoHop would encourage its customers to sample new programming. Leslie Moonves, CBS chief executive, asked rhetorically how he is to produce CSI without the revenue stream of commercials. News Corporation refused to accept Dish advertising for the device. A Forrester Research analyst said the move demonstrated Dish's desperation to keep customers at a time when alternative programming is readily available via the Internet.
The controversy surrounding AutoHop contributed to one small-market station group, Hoak Media Corporation, removing its 14 stations channels from the service on June 6, 2012. In negotiations, Hoak sought a 200 percent increase in carriage fees and the dropping of the AutoHop feature. David Shull, Dish senior vice president of programming, accused Hoak of effectively telling Dish's customers that they must watch commercials, disrespecting customer control over its services. Eight days later, the two companies announced a distribution deal. Terms were not disclosed.
On June 27, 2012, Dish Chairman Charlie Ergen told the United States House Subcommittee on Communications and Technology that the feature would enable parents to protect their children from alcohol and fast food advertising. The next day, Michael Petricone of the Consumer Electronics Association spoke to the subcommittee, likening Hopper to earlier time shifting devices. He argued that Hopper is legal and that AutoHop entices people to watch more television, thereby expanding television's market.
CNET was also forced by parent company CBS to disqualify the newest Hopper with Sling model from the CES Best in Show award for 2013 because of its active litigation with the company. CEO Joe Clayton said that Dish was "saddened that CNET's staff is being denied its editorial independence because of CBS' heavy-handed tactics." Dish Network directly attacked CBS for its decision in an advertisement for the device on its website. The ad proclaimed the DVR as being CNET's "Best in Show", but with a footnote stating that "CBS will go to any lengths to keep you from enjoying ad-skipping technology—even censoring its own writers and throwing out their decision to name Hopper 'Best In Show.' Your vote is the only one that really matters."
Dish Network independent dealers have repeatedly been charged and fined for employing illegal telemarketing tactics, such as violating do not call lists and making calls in which a live telemarketer does not connect promptly after the call is answered. Dish Network terminated agreements with some independent dealers in relation to these charges. In March 2009 the Federal Trade Commission charged Dish Network and two of its dealers with multiple violations of the FTC's Telemarketing Sales Rule and the Telephone Consumer Protection Act of 1991.
In January 2004, thirteen states charged that Echostar, then the parent company of Dish Network, had not disclosed termination fees to potential customers and had debited customers' bank accounts for hidden fees. The company settled the lawsuit, paid $5 million, and promised to disclose all terms prior to signing contracts with potential customers.