SENATE JUDICIARY APPROVES SHVIA LEGISLATION
The Senate Judiciary Committee approved a version of the Satellite Home Viewer Improvement Act (SHVIA) on Thurs. that had similarities to a version moving in the House Judiciary Committee, but it appeared not to be as restrictive on satellite broadcasters. The Judiciary Committee unanimously approved a replacement version of SHVIA reauthorization that was closer to House Judiciary legislation, according to industry sources and a spokesman for Senate Judiciary ranking Democrat Leahy (Vt.) SBCA said it was a “move in the right direction,” but added it still had some concerns with the bill. NAB didn’t return phone calls.
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The legislation (S-2013) would still raise royalty rates, an industry source said. However, it wouldn’t require retroactive inflation rate increases to DBS broadcasters, which are mandated back until 1999 in the House bill, sources said. However, S-2013 would still require a Copyright Arbitration Royalty Panel (CARP) to review the rates, which is opposed by SBCA. S-2013 would apply simpler rules to allow DBS broadcasters to broadcast out-of-market significantly-viewed stations, the source said, adding that the significantly-viewed stations portion of the bill was much closer to the rules placed on cable for significantly- viewed stations.
The bill also allows more leeway for DBS to provide distant broadcast signals, a measure opposed by NAB. The bill would allow “grandfathered” viewers who either don’t receive local broadcast signal, or receive a grade B signal, to receive both the local signal and a distant signal, SBCA said. Under the bill, starting Jan. 1, 2005, DBS consumers in these groups that receive both signals have 60 days to tell their provider they want to continue to receive both signals. SBCA said DBS providers are allowed to contact customers to tell them they must make this proactive request. “We don’t want to cut anyone off from service,” SBCA said.
The bill doesn’t address more-controversial issues, particularly the restriction on EchoStar’s 2-dish policy, which was essentially banned in the version that passed the House Commerce Committee. (EchoStar can still use a 2nd dish for local content, but all local channels must be segregated to the 2nd dish, under the House Commerce Committee bill.) However, that issue falls under the jurisdiction of the Senate Commerce Committee, which hasn’t scheduled a markup. One source said Senate Commerce Committee Chmn. McCain (R- Ariz.) likely wouldn’t have the votes to attach an amendment that would let DBS carry DTV signals to areas where broadcasters don’t yet provide DTV. It’s unclear if McCain would offer such an amendment, which is strenuously opposed by broadcasters.