| By Aaron Pressman WASHINGTON (Reuters) - Hundreds of thousands of subscribers to the DirecTV satellite television service hoping to catch hit shows like ``ER'' and ``Ally McBeal'' next week are in for a major disappointment: the shows won't be there. To settle a lawsuit with the four major television networks, DirecTV agreed to stop sending signals from network stations in a few big cities to customers around the country who live within about 35 miles of their local TV stations. The blackout could have been postponed or avoided altogether if Congress had finished work on legislation to amend the 1988 Satellite Home Viewer Act, which formed the basis of the networks' lawsuit. The 1988 law restricted satellite TV firms from carrying network shows. But lawmakers have thus far been unable to iron out differences between House and Senate versions of the reform bill. As a result, El Segundo, Calif.-based DirecTV said it has been notifying customers and cutting off programming throughout the month. The No. 1 satellite television service has 7.4 million subscribers, with most receiving network shows locally using an over-the-air antenna or as part of a cable package, said spokesman Jeff Torkelson. The only customers affected will be those who receive so-called distant network signals of CBS, ABC, NBC and Fox over their satellite dishes. Customers losing the channels received a coupon from DirecTV allowing them to purchase at Radio Shack one of two specific models of over-the-air antenna at a one-third discount or any other Radio Shack antenna at a 20 percent discount. After people living within 35 miles of local stations are turned off, another wave of cut-offs for DirecTV customers living between 35 and 70 miles away is scheduled for Dec. 31. Torkelson declined to comment on how many subscribers have been or will be cut-off, but industry officials estimate up to one million DirecTV customers are affected. The 2.6 million subscribers of No. 2 satellite firm, EchoStar Communications Corp., were not covered by the broadcasters' lawsuit, though the networks have asked the same federal court to require similar blackouts. Under the Satellite Home Viewer Act, satellite TV services are generally prohibited from carrying local stations. But an exception was made for subscribers who, using a 1950s-era measurement test, had inadequate over-the-air reception. Those customers, generally living at least 70 miles from their local broadcasters in so-called white areas, were allowed to receive distant network signals from the satellite companies. Last year, a federal court in Miami ruled that more than one million satellite TV subscribers with adequate reception were illegally receiving distant network shows. After several delays, DirecTV and the networks set the July 31 and Dec. 31 cut-offs. A bill passed by the Senate would have extended the cut-off date for people within 35 miles of local stations to Dec. 31 and for all others until a much later date. The House version of the bill did not extend the deadlines and required satellite companies to give cut-off subscribers free antennas. ``We had hoped to have the legislation enacted and signed into law by now,'' said Ken Johnson, spokesman for Louisiana Republican Billy Tauzin, chairman of the House Commerce Committee's communications subcommittee. ``The fact remains there are significant differences between the House and Senate versions,'' Johnson said. ``We'll have a compromise through Congress and on the President's desk by the first of October.'' Other differences include whether a new standard is needed to measure eligibility for distant network signals and what rules to impose on TV stations negotiating with satellite firms seeking permission to carry their signals. Reuters/Variety |