Turner and Dish Reach New Distribution Pact -- Update

By Joe Flint And Shalini Ramachandran 

Time Warner Inc. and satellite TV provider Dish Network Corp. have come to terms on a new distribution pact that includes an online offering of HBO, according to people familiar with the matter.

The two companies negotiated through Tuesday evening, past the deadline of their current short-term agreement, to wrap up a deal that will keep Time Warner's Turner Broadcasting channels such as TBS, TNT and truTV in Dish customers' homes.

The deal includes a way to subscribe to HBO through Sling TV, Dish's Web TV service. A person familiar with the matter said Dish is unlikely to be a distributor at the launch of HBO Now, the standalone app, although Dish does have the right to do so as part of the deal.

Last fall, several of Turner's channels went dark on Dish's service after talks collapsed on the new contract, which meant Cartoon Network, CNN, HLN and other channels weren't accessible in about 14 million U.S. homes. The two sides then reached a temporary accord that restored the channels.

The new agreement means Dish subscribers aren't in danger of being blacked out from watching this Saturday's NCAA basketball tournament Final Four games, which air on TBS with team-specific telecasts on truTV and TNT.

Time Warner has pledged to investors that it will secure higher fees from cable and satellite TV providers, one of the many pressures facing the pay-TV industry of late. Pay-TV providers say that rising programming costs lead to more expensive cable bills at a time when more customers are dropping traditional TV packages and opting for cheaper online video services.

Keach Hagey contributed to this article.

Write to Joe Flint at [e-mail] and Shalini Ramachandran at [e-mail]

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