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Summary

To further the longstanding U.S. media policy goal of localism, the current statutory framework for satellite and cable multichannel video programming distribution services distinguishes between the retransmission of local broadcast signals--the signals of stations located in the same local market as the subscriber--and of distant signals. Some statutory provisions block or restrict the retransmission of distant broadcast signals in order to protect local broadcasters from competition from those signals, with the intent of fostering local programming. At the same time, Congress has recognized the value of subscribers receiving certain distant signals--for example, if they are unable to receive broadcast network programming from a local station. Key copyright and retransmission provisions in the 2004 Satellite Home Viewer Extension and Reauthorization Act (SHVERA) that make it possible for satellite operators to provide their subscribers those distant broadcast signals expire on December 31, 2009. If these provisions are not reauthorized, it would be much more difficult, if not impossible, for satellite operators to provide most of those signals to their subscribers. In addition, a number of statutory provisions, and many Federal Communications Commission (FCC) and Copyright Office rules adopted to implement statutory provisions, are based on the transmission of analog broadcast signals, but during 2009 the required transition to digital broadcast signals will largely be achieved. As a result, some of the existing statutes and rules may no longer be effective in attaining the objectives for which they were enacted, unless they are modified. To date, the Senate Judiciary Committee, House Judiciary Committee, and House Commerce Committee all have reported bills (S. 1670, H.R. 3570, and H.R. 2994) that address the provisions requiring reauthorization, the transition to digital transmission, and several policy issues involving satellite retransmission of broadcast programming of local interest; the Senate Commerce Committee has held a hearing that also addressed these issues. One such issue involves those situations where counties in one state are assigned to a local market for which the primary city (and the local broadcast stations) are in another state. Under current rules, satellite and cable operators are prohibited or restricted from providing to subscribers in these "orphan counties" the signals of in-state, but non-local broadcast stations; thus subscribers in those counties may not be receiving news and sports programming of state-specific interest. But allowing the retransmission of out-of-market signals into those counties could harm the local broadcast stations. Several bills have been introduced to address this issue either generically or in specific states or geographic areas, but none of those bills has been incorporated into the bills reported by the committees. Another policy issue is that satellite operators are allowed, but not required, to offer subscribers the signals of all the broadcast stations in their local market. DirecTV and DISH Network have chosen not to offer such "local-into-local" service in small markets representing about 3% of U.S. television households. They argue that it would cost more to provide such service than they could recover in revenues and that their limited capacity could be better used providing high definition and other services in more densely populated areas. One bill would make satellite provision of local-into-local service mandatory in all 210 markets, but its sponsor withdrew it during the House Commerce Committee markup of H.R. 2994, when DISH indicated it would voluntarily serve all 210 markets in exchange for provisions in H.R. 2994 and H.R. 3570 mandating relief from a court injunction now in effect prohibiting it from retransmitting distant broadcast signals using a statutory copyright license. The Senate Judiciary Committee bill included less direct incentives for DISH Network to serve all 210 local markets. This report will be updated as warranted.

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