The best things in life are free? Not as far as Starz and Disney are concerned.
Starz, along with the Walt Disney Co., filed separate lawsuits against satellite provider Dish Network on Monday over the latter's decision to give its subscribers a free year of Starz — and by extension, Disney movies — as part of a promotion.
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Dish offered the giveaway — typically, Starz costs Dish Network subscribers in the neighborhood of $13 a month — as part of a 30th anniversary promotion.
However, in its suit filed in Colorado District Court — Dish Network is based in Englewood, Colorado, Starz alleges that Dish is using its content to pacify subscribers upset over rate increases that Dish has enacted.
"It is obvious that Dish decided to give away Starz's content and channels in order to preempt and ameliorate complaints about its subscriber-wide increases in rates," Starz' suit alleges.
Starz' content-streaming deal with Netflix — a competitor in Dish's eyes, particularly with the company's recent acquisition of Blockbuster — might add a further layer of discontent to the matter.
Individuals familiar with the situation tell the Los Angeles Times that Dish might have been spurred to offer the year-long giveaway out of ill will over Starz' and Netflix's agreement. (Starz and Netflix recently amended its streaming agreement to include a 90-day waiting period between content being aired on Starz and its availability on Netflix.)
In its own suit against the Dish Network — filed in U.S. District Court in New York City — Disney argues that Dish's giveaway endangers both the value of its movies and its relationships with other outlets that run its content.
Disney argues that Dish's giveaway "is in direct violation of plaintiffs' exclusive rights under federal copyright law, as well as the conditions and scope of [Buena Vista Pay Television]'s contract with Starz, in which BVPT granted Starz a limited license to distribute the copyrighted movies solely for exhibition via 'pay television.'"
In its complaint, Disney notes that it had asked Starz on March 4 to instruct Dish to "cease and desist" its givaway. Starz made the demand, but Dish didn't comply. Disney's complaint argues that Dish's giveaway has led to "ongoing irreparable injury."
Dish Network said in a statement that Disney's argument is with Starz, and that it's perfectly within its rights to offer Starz' programming — Disney content included — to its subscribers.
“DISH Network pays hundreds of millions of dollars for the right to distribute Starz content to our customers, which includes the rights to a number of Disney movies, and our current distribution of Disney content on Starz is permitted under our contract with Starz," the statement reads. "Dish Network does not have visibility to the contract between Starz and Disney, but we will vigorously defend our rights against any attempt to drag our customers into the middle of their dispute.”
Starz offered no comment to TheWrap regarding its suit.