Tegna, Inc. a company that operates television stations and consumer websites, have blacked out customers of Dish Network Corp. in 38 markets, according to a press release issued by Dish Network.
The blackout was Tegna's way to gain leverage in its contract negotiations with Dish Network.
Dish Network said in the press release that Tegna is using the blackout to seek an increase in its current rate to Dish Network.
The media conglomerate is looking for an above-market rate increase that doubles Dish Network's current rate.
The contract negotiations between Tegna and Dish Network has been making steady progress, and Dish Network was hopeful a mutual agreement would be agreed upon, according to the press release.
Dish Network offered a short-term contract extension to Tegna with a retroactive true-up when new rates were agreed upon. The extension would have allowed Dish Network customers to access Tegna local stations while negotiations are ongoing.
Warren Schlichting, senior vice president of programming at Dish Network, said in the press release that Tegna turned its back to the consumers.
"With DISH willing to grant an extension and a retroactive true-up on rates, TEGNA had nothing to lose and consumers had everything to gain by leaving the channels up," he said. "Instead, TEGNA chose to turn its back on its public interest obligations and use innocent consumers as bargaining chips."
Bloomberg adds that Tensions have grown as broadcasters are demanding for higher rates from cable and satellite TV providers.
These tensions have increased the number of blackouts this year.
Data that is compiled by Bloomberg Intelligence have shown that fees being paid by subscription TV service to broadcast networks and stations may increase to $6 billion this year, a 21 percent jump.
The fee is expected to increase by almost 90 percent in 2020 to $9.3 billion.
Schlichting adds in the press release that the company is doing everything it can to return Dish Network's programming lineup.
"We are actively working to negotiate an agreement that promptly returns this content to DISH's programming lineup," he said.
