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Nexstar Threatens To Black Out Dish Network Users
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Nexstar Threatens To Black Out Dish Network Users

Broadcast giant Nexstar Media Group is threatening Dish customers of a potential blackout of Nexstar’s 164 local channels in 120 markets. Dish, the satellite TV provider, said that Nexstar is using its market power and demanding unreasonably higher rates for local broadcast stations.

After buying local broadcast stations, Nexstar (NXST) has “become the largest and most powerful station owner in the country,” Dish said. Therefore, Nexstar “is trying to strong-arm companies like DISH to pay outrageous rates and force unprecedented increases onto customers.” 

Dish’s (DISH) DISH TV group president Brian Neylon said “Nexstar is demanding more than $1 billion in fees for its television channels. This shocking increase is the highest we’ve ever seen. Nexstar is intentionally turning its back on its public interest obligation and instead demanding consumers pay significantly more for the channels they could receive for free over-the-air.”

Neylon further said that “With the COVID-19 pandemic continuing to affect the nation and unemployment on the rise, subscribers need access to their local programming.” He added that “It’s our goal to reach an agreement with Nexstar that is fair for all parties involved, especially our customers.” The contract between Dish and Nexstar will expire on Dec. 2, Nexstar’s chief communications officer Gary Weitman told USA TODAY in an email. (See DISH stock analysis on TipRanks)

On Nov. 11, Raymond James analyst Ric Prentiss raised the stock’s price target to $58 (60.4% upside potential) from $50 and maintained a Buy rating, after the company “completed the purchase of Boost Mobile (>9M subs) from T-Mobile on July 1 and Ting Mobile (>0.2M subs) on August 1.” He noted that “On the Pay-TV side, we think the business will provide ongoing cash flows to help fund the 5G wireless network buildout.”

Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 3 Buys and 1 Hold. The average price target stands at $50.25 and implies upside potential of about 39% to current levels. Shares were up by about 2% year-to-date.

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