Key Points
- Echostar CEO Charlie Ergen said the company is reviewing the long-term impact of Paramount’s planned acquisition of Warner Bros Discovery.
- Ergen noted concerns about programmers competing directly with distributors, as both companies sell cable networks to Dish and Sling while expanding streaming offerings.
- Despite competitive tensions, Ergen called Paramount and WBD valued partners and said Echostar will monitor regulatory filings tied to the merger.
- Read coverage of Echostar’s Q4 and FY25 earnings report
The chief executive of Dish Network and Sling TV’s parent company Echostar says the firm is evaluating the long-term implications of a likely tie-up between Paramount and Warner Bros Discovery (WBD) after the two announced a definitive acquisition agreement last week.
On a conference call with investors Monday morning, Echostar CEO Charlie Ergen said the acquisition of WBD by Paramount was just another example of the media and entertainment industry consolidating under the premise of “cash consolidation,” or effectuating short-term synergies for long-term benefits.
“I always worry when you are competing against your own distributors,” Ergen said.
On that note, Paramount and WBD offer their linear cable networks on Dish’s satellite service, which counted more than 5 million subscribers at the end of last year. WBD’s predecessor WarnerMedia was also a launch partner for Sling TV, agreeing to offer its core cable networks CNN, TBS and TNT through the service when it debuted in February 2015; the following year, Paramount’s networks were added through a distribution pact when its predecessor company Viacom.
In recent years, Paramount and WBD have offered their programming over streaming, targeting “cord-cutters” who ditched expensive cable and satellite services for lower-priced, a-la-carte online options. That effectively created a scenario where Paramount and WBD were partnering with Dish and Sling TV for the distribution of its cable networks while simultaneously competing against both services with its cheaper streaming plans.
Those streaming services and others are largely to blame for ongoing churn in the Dish business and a yo-yo effect at Sling TV. Dish’s satellite TV service has lost subscribers in most quarters over the past few years; Sling began to see a rebound last year after introducing Day Passes, which allow customers to purchase access to ESPN, TNT and other networks for as little as $5 per day. (WBD is one of several companies suing Echostar over those short-term passes.)
Despite the competition, Ergen said Paramount and WBD remain good partners for the company, and he hopes that will continue if and when their merger is consummated.
“They are a valued vendor; that (the merger) is something that we have to keep our eye on,” Ergen affirmed. “We will wait for their filings — but, both great companies and great management for both those two.”
A merger of Paramount and WBD will bring numerous broadcast assets and cable networks under common ownership, including national cable networks like CNN, TBS, TNT, Cartoon Network, Discovery Channel, Animal Planet, OWN, HGTV, Comedy Central, Nickelodeon, BET, VH1, MTV and TV Land; multiplex movie networks like Showtime, HBO, Cinemax and The Movie Channel; broadcast network CBS and local CBS-owned TV stations in places like New York, Los Angeles, Philadelphia, San Francisco, Sacramento, Dallas-Fort Worth, Seattle, Atlanta, Denver, Milwaukee, Pittsburgh, Miami, Baltimore and Boston.
Paramount and WBD are also equal minority owners of the CW Network, which formerly operated as an evenly-split joint venture until 2022, when Nexstar Media Group acquired a controlling 75 percent stake in the broadcast network.
