One Tuesday night last November, while most of us were at home finishing dinner and watching the evening news, the U.S. House of Representatives passed Satellite TV legislation that gives property owners cause for concern. Basically, once the Bill is signed by the President, DirecTV and Echostar (a.k.a. Dish Network) will be able to retransmit local ABC, NBC, CBS and FOX broadcasting stations, in addition to their DBS programming.
Until now, residents were required to receive these local broadcasts by either using television set top antennas or continuing to subscribe to basic cable service. The Bill will give DirecTV and Echostar six months to negotiate the full broadcast rights, though they will be able to begin broadcasting the local stations right away. So what's the catch to all of this? "Congress will tell you that you've won the lottery -- what they won't tell you is that you'll have to pay $2 million," said Karen Watson of Echostar.
Winners & Losers: DirecTV and Echostar are winners, as one more hurdle will soon be removed between them and the traditional cable customer. Franchise cable operators are losers, as the competition (DBS) will soon take one giant step forward in the race for customers. Apartment residents are winners as they will save money and finally, property owners are both winners and losers.
For owners who have elected (or will elect) to use a DirecTV or Dish Network service provider in lieu of the local franchise cable operator, they will be winners. This new Bill will remove the need for unsightly antennas or antenna towers currently used to bring local programming to the property. The antennas or antenna towers were in addition to the DBS satellite dishes to be installed on each building. This change will reduce the cost of operating on a property for the service provider, thereby decreasing their chance of defaulting on an agreement for financial reasons (at least in theory), as well as remove concerns of aesthetics and some code restrictions associated with antenna towers.
Apartment residents will be winners as they can now save money and remove the cumbersome task of switching back-and-forth from antennas and channels. However, as residents become winners, property owners become losers.
One of the primary reasons consumers in general elect not to purchase a DBS service is because they are required to either continue subscribing to local cable service or purchase an additional antenna. "While I was interested in having DBS service and all of the benefits that come with it, I didn't want the hassle and expense of keeping basic cable or buying a separate antenna. However, now that I'll be able to get both DBS and local service through [the provider], I definitely plan on reconsidering getting DBS," says one resident. With this new Bill, owners can anticipate that the number of residents electing to install DBS satellite dishes on the property will increase.
For owners who have not yet developed a lease addendum addressing a resident's right to install a DBS satellite dish, there is no time like the present to get this done. For more information about DBS satellite dish lease addendums, contact telecommunications attorney Matt Ames, mames@millervaneaton.com or Jim Arbury of the National Multi Housing Council, jarbury@nmhc.org.