MIAMI, Aug. 28 (UPI) -- EchoStar Communications Corp., a satellite broadcaster, said Monday it settled its 9-year litigation with various network TV companies.
EchoStar agreed to expand its local network channel by satellite service from approximately 165 markets to 175 markets by the end of 2006.
EchoStar agreed to pay network affiliates $100 million to protect subscribers from the potential termination of their distant network channels. Distant channels are ABC, NBC, CBS and Fox network channels that originate from a market outside the community in which the subscriber lives.
While EchoStar has more than 12 million subscribers, fewer than 1 million of those customers receive distant network channels. As part of the settlement, EchoStar agreed to requalify its distant network subscribers and terminate those channels this year to the small percentage of customers who are not eligible to receive them.
Fox Network declined EchoStar's universal settlement offer and litigation with about 25 Fox owned-and-operated stations continues. It is possible that the issue with Fox could "derail the entire settlement and force EchoStar to seek legislation to protect its subscribers from disruption," EchoStar said.
