Overview

One hundred fifteen million U.S. households watch television. Approximately 88% of those households subscribe to a service that carries the retransmitted signals of broadcast stations over fiber optic cables, telephone lines, or through a satellite dish on the premises. Such services, known as multichannel video programming distributors ( MVPDs ) retransmit broadcast television signals pursuant to a regulatory framework constructed by Congress and the Federal Communications Commission (FCC). The remaining households generally use an individual antenna that receives broadcast signals directly over the air from a television station. Important parts of the regulatory framework, contained in the Satellite Television Extension and Localism Act (STELA, P.L. 111-175), are scheduled to expire on December 31, 2014. Without congressional action, 1.5 million satellite television households, mainly in rural areas, are likely to lose access to distant network broadcast signals after that date. In addition, the FCC's prohibition on joint retransmission consent negotiations between two separately owned top-four stations within the same market would become moot, and the overall risk of consumers losing access to broadcast television stations during a negotiations impasse would increase. On July 22, 2014, the House passed H.R. 4572, the STELA Reauthorization Act of 2014. H.R. 4572 would provide a five-year extension of expiring provisions. It also would broaden the FCC's current limitations on separately owned broadcasters' ability to jointly enter retransmission consent negotiations and immediately repeal the FCC's ban on integrating the security and navigation functions of cable set-top boxes. In addition, it would delay the FCC's enforcement of recently enacted rules restricting joint sales agreements among broadcasters and eliminate FCC rules barring satellite and cable operators from deleting broadcasters' programming or changing their channel assignments during certain periods. On June 26, 2014, the Senate Judiciary Committee approved S. 2454, the Satellite Television Access Reauthorization Act of 2014. On September 17, 2014, the Senate Commerce Committee approved S. 2799, the Satellite Television Access and Viewer Rights Act (STAVRA). Similar to H.R. 4572, both S. 2454 and S. 2799 would provide a five-year extension of expiring provisions. In addition, S. 2799, similar to H.R. 4572, would broaden the FCC's current limitations on separately owned broadcasters' ability to enter joint negotiations concerning retransmission consent and repeal the FCC's ban on integrating the security and navigation functions of cable set-top boxes. S. 2799 would direct the FCC to develop a streamlined process for small cable operators to file effective competition petitions and, for the purpose of modifying the local market of a television station, consider whether doing so would promote consumers' access to in-state programming. S. 2799 would also extend the market modification process to satellite operators, and direct the FCC to post information about the market modification process on its website. On November 19, 2014, the House passed H.R. 5728, which would delay the repeal of the integration ban until one year after the law's enactment, and brings the House version of STELA closer to its counterparts in the Senate. Meanwhile, several bills are pending in Congress to address concerns about orphan counties in which consumers may not be able to receive broadcast stations that provide news, sports, and public affairs programming of interest in their state. Both H.R. 4572 and S. 2799 direct the FCC to issue a report to Congress to analyze alternatives to its current definition of local television markets.

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