SUPREME COURT REFUSES TO HEAR SATELLITE MUST-CARRY APPEAL
U.S. Supreme Court refused to hear must-carry appeal filed by Satellite Bcstg. & Communications Assn. (SBCA) on behalf of EchoStar and DirecTV. Decision, without comment or dissent, means DBS subscribers must continue to receive all local channels in markets where they're offered. Justices rejected DBS argument it had constitutional right to select programming. FCC originally issued carriage regulations to protect independent broadcasters and to keep DBS companies from dropping less popular stations and adding new channels, industry sources told us. “There is no evidence” must-carry rules “will preserve even a single broadcast station that otherwise would go dark,” SBCA attorney Charles Cooper had told court.
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SBCA, which has taken fight to legal limit, filed appeal with 4th U.S. Appeals Court, Richmond, Va. (CD June 27 p9) of June 25 order by U.S. Dist. Court Judge Gerald Lee, Alexandria, Va. (CD Sept 21 p3). Lee ruled Satellite Home Viewer Improvement Act (SHVIA) didn’t violate First Amendment or Fifth Amendment. Administration also supported keeping cable and satellite must-carry rules. Appeals court said must-carry rule was “reasonable, content-neutral restriction” on satellite carriers’ speech.
“We are disappointed that the Supreme Court has refused to grant a writ of certiorari to allow our appeal,” SBCA Pres. Andrew Wright said: “Consumers in the marketplace should decide what programming satellite companies carry, not a federal mandate.” Wright said court decision would “reduce competition” and millions of consumers in smaller markets wouldn’t receive local channels. Despite disappointment with ruling, EchoStar said “it’s clear” govt. is in agreement on must-carry laws. Company said it would work to “expand to as many markets as possible,” spokesman said. NAB hailed Supreme Court decision as “a major victory” for viewers by “enhancing the diversity” of local TV station choices on satellite.