A nine-year legal battle over EchoStar's practice of selling programming to subscribers living in different cities may be coming to an end. Echostar announced that it had reached a $100-million settlement with the affiliates of ABC, NBC and CBS (CBS). The problem remaining for them is that Fox Network dropped out of the settlement last week.
The settlement still must be approved by a judge in Florida.
The deal would protect subscribers from having distant channels shut-off, which is what the $100 million is for, and has offered to expand its markets from 165 to 175 by the end of 2006.
The Fox Network, which represented 25 Fox-owned-and-operated stations, pulled out of the settlement saying this, "We have no interest in settling with EchoStar," said Andrew Butcher, spokesman for Fox's parent, News Corp., which also owns DirecTV, the country's largest dish network. "We've achieved a complete victory in the courts. Parties that win don't normally settle."
The lawsuit alleged that the practice of selling programming in different cities violated federal law. In May an appeals court in Atlanta ordered EchoStar to stop doing it. On Sept. 11 an injunction will take effect concerning that issue.
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