- Oct 15, 2003
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taken from Neowin:
3 years ago dish and viacom made a contract for $200million.
now for renewal they are asking $980Million!!
heres how the contract works.
1. dish gets to retain all the current channels
2. dish has to pay for channels it doesnt carry or broadcast
3. viacom wants control over the pricing that dishnet has for its customers (6 cents more)
so by the numbers from 3 years ago...
lets say dishnet had 5 million customers.
and now they have 10 million. that means viacom can charge twice as the previous contract.
the next factor is inflation, 6% over the last 3 years.
so the minimum viacom *could* charge is ((200 x 2 ) 1.06) = $424million
that would be a minimum, if they wanted some profit 10% is fair.
but to ask for $980million, that would be a difference $556million!!!
that is a crap load more!! thats a 43% increase!!
viacom is just plain greedy!! i rest my case!!