Hearing of the House Communications and Technology Subcommittee of the Energy and Commerce Committee - The Satellite Television Law: Repeal, Reauthorize, or Revise?

Hearing

Date: June 12, 2013
Location: Washington, DC

Today's hearing is the second time this year that this Subcommittee has convened to
examine issues surrounding the upcoming expiration of the Satellite Television Extension and Localism Act of 2010, also called STELA.

Reauthorization of STELA involves interlocking communications and copyright law
provisions that must be jointly addressed by the Energy and Commerce Committee and the Judiciary Committee.

As I stated at our hearing in February, because of the complexity of this task, I start from the presumption that we should pursue a clean reauthorization. Congress must complete its work before the law expires so consumers do not inadvertently lose access to programming.

At the same time, I believe the reauthorization provides an opportunity for members to
learn more about today's video marketplace and assess whether laws and regulations are keeping pace.

As we begin this conversation, we need to consider how we can continue to ensure
diversity, localism, and competition, which are the principles that undergird our nation's media policy. Congress has recognized the need to protect many of these values -- especially when the market might not. New avenues for online video distribution are creating exciting new opportunities for consumers and content creators alike. But to realize these opportunities, competitors may need access to "must have" content and independent creators may need the opportunity for their programming to reach audiences far and wide.

I represent many interested parties in today's debate in my congressional district. Many of my constituents are the artists, writers, producers, and directors whose creativity drives consumer demand for video and who deserve to be compensated fairly. And many of my constituents work at the studios and media companies like Disney that make desirable content available to consumers.

I also represent companies like the Santa Monica based Tennis Channel. The Tennis
Channel is an independent cable channel that offers consumers unique tennis and tennis-related programming.

Congress sought to protect the diversity offered by independent channels like the Tennis
Channel in the 1992 Cable Act by adopting provisions to guard against discrimination by
vertically integrated distributors.

The CEO of the Tennis Channel, Ken Solomon, sent the Committee a letter today
outlining his perspective on the effectiveness of the FCC's so-called "program carriage" rules. I ask unanimous consent that Mr. Solomon's letter be entered into the record. I hope our discussion today will include consideration of whether today's video marketplace is making diverse and independent content available to all Americans.

I am proud that my congressional district also includes the headquarters of DirecTV, the
second largest video distributor in the United States, now serving over 20 million subscribers. Not only does DirectTV have approximately 3000 employees based in El Segundo, California, the company operates 100% California made satellites, some of which were also produced in my congressional district. As one of the satellite providers that this legislation was originally designed to assist, DirectTV can educate the Subcommittee about why it believes the Act should be reauthorized, what aspects of STELA are working well, and what parts of the law might need to be modified. I would like to extend a special welcome to our witness from DirectTV, Mr. Palkovic.

Thank you to our panel members for appearing today. We look forward to your testimony and your continued engagement as we move forward with this reauthorization.


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