DirecTV, Networks Reach Accord on Programming Issue

DirecTV Inc., the largest U.S. provider of satellite television service, on Friday reached agreement with the major TV networks to delay the cutoff of network programming.

The Hughes Electronics Corp. unit and the networks said they negotiated the settlement after a federal court in Miami ordered DirecTV last month to cut off network programming to hundreds of thousands of its customers.

Under the agreement, DirecTV customers living in areas close to local TV stations (called grade A areas) who are still seeing the shows, will have them turned off by June 30. But DirecTV will subsidize the purchase of antennas to help those customers get better over-the-air reception.

Customers living farther away from stations (grade B areas) will lose the satellite-delivered network shows Dec. 31 and then will also be able to buy subsidized antennas.

Although the federal lawsuit was brought only by CBS Corp. and News Corp.’s Fox, the agreement will also cover network channels of Walt Disney Co.’s ABC and General Electric Co.’s NBC. Broadcasters brought the lawsuit because DirecTV was sending customers nationwide network shows from just a few stations located in major cities.

CBS stock slipped 13 cents to close at $36.25; Hughes was off 6 cents at $47.94. Both trade on the New York Stock Exchange.