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CBS and other Viacom networks still had plenty of other ways to reach national viewers, so it would take some time before they would see any dropoff in advertising profits Bernstein After CBS went dark on the affected EchoStar systems, the satellite broadcaster disclosed the home phone number of Viacom president Mel Karmazin on one of its customer service lines for people to call with complaints By far the worst fallout for both companies, as well as for their brethren in the media industry, is political Viacom, on the other hand, was in a much better position to wait it out from a business perspective Moffett believes EchoStar may have pulled the stunt to gain more awareness in Congress of the issues behind a key piece of legislation governing satellite broadcasters, which is being revised this year In this case, even more dirty laundry came to light But when the public does get caught in the middle, it can backfire for the media companies who may think that they're annihilating the enemy " EchoStar Communications Corp found out this week, actually using that weapon can be extremely costly, not only for the two combatants but also for anyone else in the industry hoping to win friends in Washington and in the public " The public normally doesn't become involved when giant media companies like EchoStar and Viacom have bitter disagreements over industry issues such as the "retransmission consent" that broadcasters must give multichannel operators like DISH to carry major networks "This should never have gotten to this point of confrontation But as the DISH Network and Viacom Inc 's proposed megamerger with The Walt Disney Co " EchoStar and Viacom already knew that they could suffer from using such tactics, given the backlash that Time Warner and Disney suffered in May 2000 when a similar dispute over transmission rights resulted in ABC being unplugged from millions of Time Warner Cable homes , which runs the DISH satellite TV service, had more to lose in the short term as viewers in more than a dozen key markets could no longer receive most channels owned by Viacom, including CBS, MTV and Nickelodeon Viacom officials were outraged Public interest groups and members of Congress are already on a campaign to roll back media consolidation, and a public brawl between two behemoths that traps the viewing public in the middle could hardly come at a worse time "I think that people are grossly underestimating the political headwinds that would face further consolidations in the media industry," said Craig Moffett, an analyst at Sanford C The cable industry immediately went on the offensive, according to Merrill Lynch analyst Jessica Reif Cohen, launching a promotional campaign in several affected markets to lure satellite customers back to cable EchoStar said Viacom was asking for unreasonable terms to carry the networks Fred Upton, a Michigan Republican, indicated as much on Wednesday when he urged the two sides to "cut to the chase and see if we can't come to an agreement, especially as March Madness begins Even when the dispute lasts just 48 hours, as it did in this case, the fallout can be poisonous Rep " But even so, Moffett says, taking SpongeBob SquarePants and March Madness away from viewers has obvious drawbacks: "It's dangerous for everybody "The political fallout from this thing is likely to reverberate for some time "Both sides are losers in this case," said Harold Vogel, a veteran media investor and CEO of Vogel Capital Management Pulling the Plug on TV Shows Has Its Costs Mar 11, 6:27 PM EST When media titans clash over television rights, there's always the weapon of last resort: pulling the plug In fact, the public outcry could further hurt media conglomerates as they seek to overcome opposition to even further consolidations, such as Comcast Corp EchoStar didn't disclose how many subscribers it may have lost because of its bare-knuckle negotiating tactic, but clearly the damage would have been considerable if the dispute dragged on "I told them, 'I don't know those dudes from (expletive)'," Vanner said Among the crowd at the civic center were school bus drivers who had worked with victim Robert Reisner, 29, and drove his bus to the service " At St It's that closeness that's going to pull everyone through this "I believe the Derderians might be able to provide some answers that may assist all of us," Lynch said late Monday J Authorities have begun interviewing employees at nightclubs in other states where employees say Great White used pyrotechnics without notice Attorney General Patrick Lynch said the owners, brothers Jeffrey and Michael Derderian, have not answered investigators' questions since the fire The developments came one day after thousands turned out to honor the dead at three separate memorial services At the memorials, the focus was on the victims In nearby Warwick, about 400 people sang hymns and prayed for the victims at an interfaith service The band has said it received approval to use the special effects, but the club's owners have denied giving permission Holt of the Rhode Island Council of Churches Investigators have been trying to determine who is to blame for Thursday's inferno, which was apparently sparked by the band's pyrotechnics and swept through the one-story, wooden building in just three minutes About 80 survivors of the blaze remained hospitalized Monday; about half were listed in critical condition Nash, a national soundproofing distributor in San Diego The grand jury will convene Wednesday, law enforcement authorities said on the condition of anonymity John E Great White Subpoenaed Feb 25, 1:57 PM EST WEST WARWICK, RHODE ISLAND (AP) -- Members of the band =/artist/?artist=105526 class="art">Great White have been subpoenaed to testify before a grand jury that will investigate the nightclub fire that killed 97 people last week, authorities said Tuesday Tomorrow they're gone The club passed a fire inspection Dec "There is no doubt in my mind that he was letting people out of the club in front of him," Danny Manns recalled Gregory the Great Church in Warwick, one pastor asked grieving families to hold up pictures of their lost relatives so mourners can "know for a moment those you loved I can't guarantee safety in your club State law bars flammable acoustic material like polyurethane foam from the walls of gathering spaces like bars Fire Chief Charles Hall declined to comment on the investigation Tomorrow we're here "If you don't know someone who died or was hurt in the fire, you know somebody who knows somebody Among the dead was Great White guitarist Ty Longley, 31, whose body was identified Monday " A polyurethane panel typically costs about $150 while a melamine panel, which experts say withstands heat, sells for nearly $250 Paul Vanner, who described himself as a sound engineer and stage manager at the club, told The Boston Globe and the Boston Herald he warned Michael Derderian three months ago that pyrotechnics were being used by bands in the club and the practice should be stopped "It's a common mistake many people make, not evaluating their materials," said P The pyrotechnics apparently set fire to soundproofing behind and above the stage Don Carcieri's spokesman, Jeff Neal " The governor ordered state agencies to fly the Rhode Island state flag at half-staff " Soundproofing experts who have seen video of the disaster say they believe the material used at the Station was polyurethane foam, a commonly used, inexpensive alternative to fire-resistant panels many experts prefer "This state is like a close-knit family," said Tricia Colon, a middle school teacher who attended Monday night's service at the West Warwick Civic Center "Polyurethane foam is extremely flammable, and if you breathe that smoke, it's going to knock you out in a minute "If it was (polyurethane), then the governor's going to want an answer to the question, 'Why was it there?'" said Gov "He was a gentleman One official also said investigators have searched the home of one of the club's owners And hundreds more attended a prayer service in Pawtucket He saluted families for their "quiet courage " "It's true that some good may come from this disaster, but the event itself is only tragic and will never make sense," said the Rev Carcieri also asked President Bush to declare the fire a state disaster, which would make Rhode Island eligible for federal aid " It was standing-room-only at the 2,000-seat center, just a few miles from the charred ruins of the Station club Kathleen Hagerty, an attorney for the Derderians, said the brothers provided information to West Warwick police and have arranged to share information with the attorney general "They are lighting fires in your club 31, but it wasn't clear if the soundproofing material was checked or would normally be looked at during a routine inspection |
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