Home Box Office and four major Hollywood...

Home Box Office and four major Hollywood studios on Monday dropped objections to Z Channel’s plans to distribute programing by satellite. Z Channel, a 14-year-old pay television service, has transmitted most of its programs by microwave but argued in court papers that it would “likely be eliminated as a competitor” if it did not switch to satellite transmission. Z Channel, however, lost a motion in federal court to sell advertising on its sports programs. Z Channel had not yet decided whether to appeal the ruling, a company spokesman said.