DIRECTV AND DISH NETWORK WELCOME BILL TO REPEAL UNFAIR SATELLITE TV TAX
El Segundo, Calif. and Englewood, Colo. – July 2, 2008 – DIRECTV, Inc. (NASDAQ:DTV) and DISH Network Corporation (NASDAQ:DISH) issued the following statement in response to a bill filed today in the Ohio House of Representatives by Rep. Louis W. Blessing to repeal the excise tax placed on satellite customers in 2003:
“DIRECTV and DISH Network support this bill and look forward to the repeal of a discriminatory tax that hurts all Ohioans.
Since this unfair tax was placed on the books in 2003, Ohio satellite customers have paid an extra $100 million on their bills and are on track to pay an extra $40 million in 2008. This tax especially hurts Ohioans who choose satellite TV because of its superior quality, programming, and service. Many of those subscribers are rural Ohioans, for whom satellite television may be their only pay TV choice. Discriminatory satellite taxes are also bad for cable customers, since they allow cable companies to raise their rates by the amount of the tax without suffering any competitive disadvantage. This tax was misrepresented from the beginning. The cable industry argued that because cable companies were paying a franchise fee, they were being taxed, while satellite companies were not. However, franchise fees are paid to local governments to compensate for the right to dig up public streets and sidewalks so that cable companies may lay their cables. Franchise fees are an inherent cost of doing business for cable companies. Satellite does not use municipal property for its transmissions, but has its own costs of doing business – the costs of building, launching and maintaining satellites in outer space.
The Franklin County Court of Common Pleas in Columbus has struck down the tax as discriminatory and unconstitutional, and the State now faces the likelihood of having to return more than $100 million in taxes to satellite subscribers. We commend Rep. Blessing for recognizing that satellite and cable have unique costs of doing business, that government has no business imposing additional costs that favor one over the other, and that the State of Ohio cannot stand by while a $100-million debt continues to grow. We urge the Ohio General Assembly to pass this bill swiftly and Governor Strickland to sign it into law.”
About DIRECTV, Inc.
DIRECTV, Inc. (NASDAQ:DTV - News), the nation’s leading satellite television service provider, presents the finest television experience available to more than 17 million customers in the United States and is leading the HD revolution with 95 national HD channels – more quality HD channels than any other television provider. Each day, DIRECTV subscribers enjoy access to over 265 channels of 100% digital picture and sound, exclusive programming, industry-leading customer satisfaction (which has surpassed cable for eight years running) and superior technologies that include advanced DVR and HD-DVR services and the most state-of-the-art interactive sports packages available anywhere. For the most up-to-date information on DIRECTV, please visit directv.com.
About DISH Network Corporation
DISH Network Corporation (NASDAQ:DISH), the nation’s third largest pay-TV provider and the leader in digital television, provides more than 13.815 million satellite TV customers with industry-leading customer satisfaction which has surpassed major cable TV providers for eight consecutive years. DISH Network also provides customers with award-winning HD and DVR technology including the ViP722™ HD DVR, which received the Editors’ Choice awards from both CNET and PC Magazine. In addition, subscribers enjoy access to hundreds of video and audio channels, the most International channels in the U.S., industry-leading Interactive TV applications, Latino programming, and the best sports and movies in HD. DISH Network offers a variety of package and price options including the lowest all-digital price in America, the DishDVR Advantage Package, high-speed Internet service, and a free upgrade to the best HD DVR in the industry. DISH Network is included in the NASDAQ-100 Index (NDX) and is a Fortune 300 company. Visit www.dishnetwork.com/aboutus or call 1-800-333-DISH (3474) for more information.
CONTACTS:
DIRECTV:
Darris Gringeri, 212-462-5136, dagringeri@directv.com
Andrew Reinsdorf, 202 715 2334, areinsdorf@directv.com
EchoStar:
Kathie Gonzalez, 720-514-5351, press@echostar.com
David Goodfriend, 202-293-1311, david.goodfriend@echostar.com |
