But satellite broadcasters still reach barely 2 million customers - compared with the 63 million served by cable.
It would also permit satellite broadcasters, for the first time, to carry local signals in local markets.
The idea is to inject competition by allowing, say, a satellite broadcaster to buy popular programs.
He also said Cablevision had begun to feel strong competition from satellite broadcasters and others.
One trend may be for rural cable operators and satellite broadcasters to join forces.
Part of the problem is technological - satellite broadcasters do not yet have the capacity to offer customers local sports and news.
Many people do this by skirting around the law by watching via satellite broadcasters from their own country.
The cash proposed yesterday will mainly be used to pay satellite broadcasters.
The move seen as part of the satellite broadcaster's move into the internet TV market.
An even larger question is the potential effect on satellite broadcasters like Rupert Murdoch.