EchoStar Settles With Affiliates of 3 Networks

Satellite TV provider EchoStar Communications Corp. said Monday that it had reached a $100-million settlement with affiliates of three major networks over distant-programming service but was unable to resolve differences with Fox Network.

The agreement could end a nine-year lawsuit over the Dish Network operator’s practice of selling programming from ABC, NBC, CBS and Fox stations to subscribers who live in a different city. A judge in Florida must still approve it.

EchoStar said it would pay the affiliate associations $100 million to protect subscribers from the shut-off of distant channels and expand the number of markets in which it offers local network services from 165 to 175 by the end of the year.

EchoStar, the nation’s second-largest satellite TV operator, said Fox Network, representing 25 Fox-owned and -operated stations, pulled out of the settlement last week.

“Though unlikely, it is possible Fox’s last-minute tactic could derail the entire settlement and force EchoStar to seek legislation to protect its subscribers from disruption,” the company said.

“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 networks had alleged that EchoStar’s practice violated federal law. An Atlanta appeals court ruling in May ordered EchoStar to stop the practice. An injunction is to take effect Sept. 11.

EchoStar previously settled with ABC, NBC and CBS. Together with the affiliate deals, it has reached agreement with nearly 800 independently owned and network-owned stations.

EchoStar has said it receives less than $5 a month from each distant subscriber, but the end of such programming would reduce monthly revenue and free cash flow and increase churn -- customers who stop service.

Based in suburban Englewood, Colo., EchoStar has 12.5 million subscribers on the Dish Network.

EchoStar shares rose 51 cents to $32.21.