Judge denies restraining order against Dish Network for ‘Why Pay More’ ads
By APTuesday, February 16, 2010
Judge keeps Dish ads against DirecTV on air
LOS ANGELES — A federal judge has denied a request to temporarily ban Dish Network Corp. ads that ask consumers “Why Pay More?” for TV service from rival satellite provider DirecTV Inc.
DirecTV filed a lawsuit in U.S. District Court in New York last week saying Dish is using false and misleading ads that say its basic package is $24 cheaper per month.
DirecTV argued the comparison is “apples-to-oranges” because it compares two different tiers of programming.
Dish Chief Executive Charlie Ergen said Tuesday that the comparison looks at the two companies’ most basic packages, which contain “essentially the same programming.”
“The whole world knows Dish told the truth and a judge agrees,” he said in an interview.
Ergen said DirecTV was just worried about losing customers. “In Tennessee, we always call that ‘A stuck pig squeals the loudest.’”
The ads have been driving a revival at Dish since they began running nine months ago.
Dish lost 94,000 net subscribers in the first quarter of 2009 but added 26,000 in the second quarter, its first increase in five quarters. By the third quarter, it gained 241,000.
Ergen said those gains made it the fastest growing video provider in the U.S.
On Tuesday, DirecTV maintained that the ads were deceptive and said its legal campaign would continue.
“We will vigorously pursue our lawsuit to prevent Dish Network from attempting to lure customers away from DirecTV through its blatantly misleading advertising campaign,” said spokesman Jon Gieselman.
DirecTV, based in El Segundo, says in its lawsuit that the ads compare Dish’s $39.99 “America’s Top 120″ package, which has fewer than 100 channels, to DirecTV’s $63.99 “Choice Xtra” package, which has more than 140 channels.
Dish, which is based in Englewood, Colo., said its ads compare its “America’s Top 120″ to DirecTV’s “Choice” without promotions when available in two rooms.
Dish said its package had 34 of the top 40 rated channels to DirecTV’s 40.
Dish’s basic plan doesn’t include FX, truTV, AMC, Nick Jr., Hallmark, and the Lifetime Movie Network.
