Hearing of the Senate Commerce, Science and Transportation Committee - Review of the Satellite Home Viewer Act of 1999

Sen. Hollings' Opening Statement before the Senate Commerce, Science, and Transportation Committee's Hearing to Review the Satellite Home Viewer Act of 1999

Today we consider matters related to the satellite television industry, and specifically the need to extend certain provisions of the 1999 Satellite Home Improvement Viewer Act-also known as SHVIA. These are set to expire at the end of this year. Under that Act, Congress moved to stop satellite operators from illegally importing distant analog signals into local markets, and instead, created a compulsory copyright license that today allows subscribers in more than 100 television markets to receive local broadcast stations from a satellite provider.

As a result of Congress' actions, satellite television service has emerged today as a formidable competitor to cable in the video programming marketplace. In 10 short years, DBS service has grown out of its infancy into a programming service capturing better than one of every five video subscribers. In particular, Congress' action permitting "local-into-local" service has not only served our interest in promoting access to locally-oriented, community programming, but has strengthened the ability of satellite operators to compete against cable for video subscribers. According to a recent GAO study, the number of DBS subscribers is 40 percent higher in markets where satellite operators also offer local channels.

Today's hearing allows the committee to focus, in particular, on two provisions of the Satellite Home Viewer Improvement Act that expire at the end of this year unless Congress takes further legislative action. The first is the compulsory copyright license under section 119 of the Copyright Act that permits satellite operators to air distant signal broadcast programming. The second is an exception under section 325 of the Communications Act, exempting satellite operators from having to negotiate retransmission consent when providing distant broadcast signals to subscribers.

While there are a number of issues the Committee may wish to address, it is my hope we will be able to move quickly in a bipartisan fashion to extend expiring provisions. I hope we can make other changes to serve the public interest, specifically preserving consumer access to community-oriented programming and providing satellite operators with proper incentives to expand their current offering of local broadcast channels in a non-discriminatory manner to all 210 television markets.

I look forward to working with the Chairman on these issues in the days ahead.