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1999 News
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New Products Highlight CES

Once again, this year's CES show in Las Vegas delivered a ton of new product announcements and services. Below is some of the news that came out of the four-day event:

Philips, WebTV In Partnership - Philips Consumer Electronics and WebTV Networks will jointly develop and deliver a set-top box incorporating WebTV's new personal TV service featuring digital video recording capabilities, TV pause and Internet services. 

Motorola Debuts New Sat-Phone - Motorola unveiled what it said is the world's smallest flexible multi-mode satellite phone, the Satellite Series 9505 portable handset. The phone is designed for the struggling Iridium system.

Thomson Unveils HDTV Sets - New HDTV systems from Thomson Consumer Electronics, 38-inch and 34-inch sets with the RCA and ProSCAN brands, will become available in late 2000. The models feature a fully-integrated electronics package that allows reception of over-the-air analog and digital signals as well as standard and high-definition programming from DIRECTV.

Zenith, Wink Score Deal - Zenith Electronics and Wink Communications will incorporate Wink's Enhanced Broadcasting technology into Zenith's multimedia TV line. 

Globalstar Makes Limited Debut - Globalstar USA, the provider of the satellite-based phone service in the United States, announced its offering is now available to customers for the first time. During the limited service phase, customers can purchase Qualcomm tri-mode handsets and satellite phone service, as well as activate the cellular mode of their handset. Globalstar announced plans for an early January launch last week. 

Events at the International Consumer Electronics Show saw very busy booths at the satellite pavilion, innovative accessories and new product rollouts that will keep CE store floors hopping for the rest of the year.

Noticeable statements made by industry leaders include Circuit City's Rick Souder observation that cable modems are selling at a faster rate than satellite did when it was introduced. DIRECTV's Eddy Hartenstein emphasized that his service will no longer be just satellite-delivered television but the top provider of the digital multimedia experience. He also said DIRECTV closed the year with $3.4 billion in revenue, more than double the revenues in 1998.

EBIDTA also was positive in 1999. EchoStar's Charlie Ergen said the service will add the DIY Network, and may include Showtime Beyond and Showtime III in the future. EchoStar will likely have an announcement on public interest channels today.

Senior executives and staff with Time Warner and a crew from Liberty Media were seen walking the show floor. During the past few months, Liberty has made significant moves into satellite with a stake in the future Astrolink platform and realigning its TSAT subsidiary. CES continues through the weekend.

EchoStar Gives Away DISH 500

EchoStar is offering consumers a free DISH 500 system if they commit to one year of DISH Network programming at $39.98 per month. 

New customers also will receive a free basic professional installation - a $199 value - with any DISH Network satellite TV system. The promotion runs through March 31. 

The new marketing campaign was announced at CES in Las Vegas Thursday. Also at the show, EchoStar unveiled DISH DVD, which it calls the world's first combination satellite television receiver with a built-in Digital Versatile Disc (DVD) player. And the company revealed its new DISH HD  receiver, an integrated receiver with the ability to receive HDTV signals. 

During the show, which runs through the weekend, the company's DISHPlayer satellite receiver was chosen by CES officials for the "Best of Show" award in the Satellite Systems category. The system offers interactive features such as rewind, pause and record, as well as web surfing through Microsoft's WebTV service. 

Panasonic-HNS Deliver DIRECTV Boxes

Panasonic will incorporate the DIRECTV PLUS high-definition technology into its branded digital set-top boxes, the company announced Wednesday. 

Panasonic's DIRECTV receiver will connect users to standard and high definition broadcasts from the DBS provider, including new local TV offerings delivered via satellite. The system also has capabilities to get local terrestrial signals via a rooftop antenna.

In addition to the Panasonic announcement, DIRECTV's sister company Hughes Network Systems said it will manufacture a DIRECTV PLUS system capable of getting the same HDTV and standard television broadcasts. HNS' "Platinum HD" receiver, set to ship in the second quarter of this year, is compatible with the DirecDuo antenna system. DirecDuo allows users to connect to the DirecPC Internet service as well as DIRECTV programming.

The Panasonic and HNS receivers will be among the first to offer DIRECTV's Advanced Programming Guide. The new guide provides customers with a single source for both HDTV and standard digital broadcasts. 

More Programming For DISH 

EchoStar expanded its public interest and educational programming channels at no additional cost to subscribers. The company also is adding basic and premium programming choices for customers.

DISH Network now offers more than a dozen channels providing international news, university and K-12 level coursework, academic research, family life programming and foreign language instruction. 

The educational/informational programming is a requirement for DBS providers. Channels available from satellites at 119 degrees include C-SPAN, Eternal Word Television Network (EWTN), global cultural channel WorldLink, The NASA Channel, Universityhouse Channel from Northern Arizona University, Trinity Broadcasting Network, and UCTV from the University of California. Channels from the 110 degree location include content from Brigham Young University, Hispanic programming from HITN, PBS YOU, and Research TV. Educational/informational programming also is available at EchoStar's 61.5-degree location from DELLL, FREE SPEECH TV and Mayerson Academy. 

DISH Network also is adding Scripps Networks' Do It Yourself (DIY) to its expanded basic programming offerings and new premium movie channels: Showtime Beyond, Showtime 3 and The Movie Channel 2. The Showtime channels will become part of DISH Network's Showtime Unlimited package, available to customers who have a DISH 500 system. Showtime Unlimited's 10 channels will sell for $10.99 a month. The Movie Channel 2 will launch in the spring of 2000.

In addition, DISH will soon offer west coast feeds of The Movie Channel and The Movie Channel 2 in an upcoming, enhanced programming package available this spring for DISH 500 customers.

AOL TV May Make Appearance At CES

America Online may show set-top boxes and web terminals for its online service at the Consumer Electronics Show in Las Vegas, according to CNET News.com AOL is developing interactive television services with DIRECTV. Those offerings are expected to debut for consumers sometime this year.

In addition to AOL TV, DIRECTV and partners TiVo and Philips are expected to unveil a personal TV system capable of getting the DBS service. 

DIRECTV Gets Another Ethnic Program Partner 12/31/99

Kelly Broadcasting will supply up to 16 non-Hispanic foreign-language channels to DIRECTV under a multi-year agreement announced Thursday. 

While Kelly represents a new niche programmer for DIRECTV, the satellite powerhouse won't abandon services from foreign-language program provider SkyView Media, spokesman Bob Marsocci said. Certain assets for SkyView, which is under bankruptcy proceedings, are slated to be bought by DIRECTV competitor EchoStar. 

Through the Kelly deal, DIRECTV will get programming from Russia, Lebanon, Egypt and a selection of Arab/Indian/Asian channels. DIRECTV and Kelly also plan to offer Chinese, Italian and Korean-language programming in the future. 

Services will be sold on an a la carte basis and in bundled packages based on ethnic market interests. They will be delivered via the DIRECTV Plus platform from satellites at 110 degrees and 119 degrees. The system also integrates core programming from DIRECTV's 101-degree position. 

Kelly will provide installation services and in-language customer support. It also will sell DIRECTV Plus systems via outbound direct marketing and sales. 

Because the Kelly services will be placed among DIRECTV's high-power satellites, SkyView's future within the DIRECTV ethnic platform is uncertain. SkyView uses a PanAmSat satellite for its DIRECTV offering. The service isn't included among DIRECTV's high-power birds. 

EchoStar agreed to purchase SkyView for $23 million on Wednesday. Under the court's initial decision, EchoStar won't have access to the company's subscribers, Marsocci said. A court order on the subscriber question could be issued next week. 

SkyView filed for Chapter 11 bankruptcy reorganization during the summer. EchoStar spokesman Marc Lumpkin said specific details surrounding SkyView will be revealed once the transaction is completed.

National Geographic Scores DBS-Cable Deals

The National Geographic Channel inked carriage agreements with AT&T Broadband and Internet 
Services and DIRECTV, separate deals that will give the network much-needed presence on the nation's largest cable system and the biggest U.S. satellite platform. 

National Geographic Channel will become part of DIRECTV's Total Choice programming packages. The network will roll out to a majority of AT&T BIS cable subscribers during the next five years. With the support of DIRECTV and AT&T, National Geographic Channel plans to launch with at least 7.5 million subscribers in the second half of 2000. 

The network is a joint venture between National Geographic Television, Fox and NBC. The channel has been available to international viewers since its initial launch in Europe and Australia in September 1997. 

The deal was announced at the Western Cable Show. In other news from the event, Wink Communications formed a strategic alliance with PowerTV to offer impulse electronic commerce and enhanced programming and advertising on digital cable. Encore Media Group also announced plans to combine the Encore and STARZ! networks under one unified brand, STARZ! Encore Media Group.

FCC Seeks Comment On DTV Obligations

The Federal Communications Commission is soliciting comment on potential public interest  obligations for TV broadcasters as they transition to digital. 

The commission said it wants to create a forum on how broadcasters can best serve the public interest during and after their digital transition. The commission stressed it's not proposing new rules or policies, but wants ideas and public comment to determine what, if any, further steps should be taken as far as DTV public interest obligations. 

The move follows an FCC order created in April 1997 in which the Commission indicated it would seek feedback on the public interest obligations of digital TV broadcasters. The FCC also is seeking comment on recommendations from the President's Advisory Committee on the Public Interest Obligations of Digital Broadcasters.

Zenith-DIRECTV Ready HDTV Boxes

The first HDTV compatible receivers from Zenith Electronics and DIRECTV are set to debut next month in Las Vegas at the Consumer Electronics Show. 

The set-top boxes, which will go on sale in the fall of 2000, are Zenith's first digital satellite product for the U.S. market. The agreement between the two companies also stipulates that Zenith can incorporate DIRECTV Plus receivers with HDTV programming reception capability in its high definition television sets. 

Bill Casamo, executive vice president for DIRECTV, said "Zenith continues to build on an 80-year heritage of television leadership with its entry into the digital and high definition satellite television 
market." 

Based in Glenview, Ill., Zenith is a long-time producer of electronic entertainment products. Since November 1999, Zenith has been a wholly-owned subsidiary of LG Electronics, a $9 billion global leader in electronics and digital technologies. 

EchoStar To Offer Free DISH 500 Upgrades 12/10/1999

EchoStar has developed special packages for current subscribers interested in upgrading to the new DISH 500 service.

Chairman Charlie Ergen discussed the DISH 500 packages during this week's Customer Charlie Chat. Existing DISH Network customers, he said, will have the option of upgrading to DISH 500 systems for free if they commit to subscribing to the America's Top 100 CD programming package for one-year. 
The package costs $39.98 a month, and subscribers will be responsible for a $24.95 shipping fee.

DISH 500 offers up to 500 channels with a single dish, including local channels in more than a dozen cities, regional sports networks, foreign language programming, the new DISH Latino Spanish-language package, DISH-On-Demand pay-per-view channels, as well as high-speed data and interactive television services. The system is equipped with dual amplifiers, meaning it receives broadcast signals from satellites located at both 119 degrees and 110 degrees West Longitude.

Current customers who want the upgrade but do not opt for the one-year programming package can get a DISH 500 antenna and installation for $99, Ergen said.

Interactive TV Aims For Billions By 2005  12/09/1999

The interactive broadcast video market could reach $4.2 billion by 2005, according to the new report "Interactive Broadcast Video: Market Forecasts and PC/TV User Studies" released by DFC Intelligence.

Primary research from the report states that 71 percent of cable/satellite and broadcast channels have on-screen or PC program enhancements, while 54 percent of all broadcast affiliates have local video or links back to network  sites for national feeds. 

The DFC research and forecasts analyzed several market categories, including Internet on TV, personal video recorders (PVRs), video on-demand, streaming video, broadband video, on-screen overlays and datacasting. 

"Internet on TV is one of the most promising business and programming applications and is expected to bring in over a billion dollars in revenue by the year 2005," said the report's author, Paul Palumbo. "Meanwhile, PVRs will not overturn the broadcast viewing experience or business model as we know it today, but rather further enhance and diversify it with more than $1 billion per year in additional value created by 2005."

 DIRECTV Orders Spot-Beam Satellite

DIRECTV ordered a new high-power spot beam satellite from its sister company, Hughes Space & Communications.

The new bird, the fifth spacecraft Hughes Space and Communications has built for the DBS service, should help the company with its local-into-local plans and address the future implications of must-carry mandates that kick in Jan. 1, 2002. DIRECTV said it expects to launch the new satellite, dubbed DIRECTV-4S, in the fourth quarter of 2001.

DIRECTV-4S will be stationed with other DIRECTV satellites at 101 degrees. It has a designed service life of approximately 15 years. A specific launch date for the satellite will be announced upon completion of negotiations with launch vehicle service providers.

DIRECTV Scores NHL Extension

DIRECTV won a multi-year extension for its carriage of the NHL Center Ice package, making the DBS provider the exclusive holder of satellite distribution rights for the big league offering. 

NHL Center Ice features up to 30 regular-season games a week. The extension runs through the 
2001-2002 season, keeping DIRECTV's main competitor, EchoStar's DISH Network, out of the running at least for the following two seasons. 

NHL recently scored a deal with Viewer's Choice, a pay-per-view outfit that provides programming for cable operators. The carriage agreement will allow digital cable subscribers to get Center Ice following February's All-Star Game. 

PPV Soars During the 90s   12/02/1999

According to Showtime Event Television, the pay-per-view industry generated $7.9 billion in revenues from 1990 through 1999, a figure that includes both movies and events. 

Total annual gross revenues have jumped from $248 million reported in 1990 to an estimated $1.92 
billion for 1999, according to SET, a unit of  Viacom's Showtime. 

During 1999, movies generated more than half of all pay-per-view revenues, bringing in $1.068 billion. Events such as boxing, wrestling and concerts brought in $486 million. Adult video networks such as Playboy and TEN (The Erotic Network) took in $367 million. 

The winner among pay-per-view events for 1999 was boxing, which took in $219 million. Wrestling 
grossed $247 million, while concerts generated $13 million. 

DIRECTV Applauds Passage of Satellite Home Viewer Act


Bill Allows Satellite TV Companies to Deliver Local Broadcast Network Channels El Segundo, CA, Nov 19, 1999 -- DIRECTV, Inc. today applauded Congress for passing the "Satellite Home Viewer Improvement Act of 1999." The bill permits improved competition between satellite carriers and cable operators. 
The bill allows satellite TV companies - for the first time - to offer local broadcast network channels, and it also provides a five-year reprieve to hundreds of thousands of consumers who were scheduled to lose distant network signals as the result of a federal court decision earlier this year.

"The passage of this legislation is a tremendous win for consumers and ushers in a new era for satellite TV," said Eddy W. Hartenstein, president of DIRECTV. "Every month, two-thirds of our new customers come to DIRECTV from cabled areas, which underscores the need for enhanced competition in the home entertainment industry. Upon President Clinton signing the bill into law, we will begin offering local channels to major metropolitan markets throughout the country - finally leveling the playing field between satellite and cable."

As previously announced, DIRECTV will offer local broadcast network channels via satellite to up to 50 million homes, or about half of the nation's television households. DIRECTV will begin rolling out local channels in Los Angeles and New York within hours following the President's signature of the new law, and will continue adding markets throughout the remainder of 1999 and in 2000.

In addition to Los Angeles and New York, the first markets to receive this new local channel service include San Francisco, Washington, D.C., Denver, Detroit and Miami. Additional markets will be announced in the coming weeks as the rollout continues.

DIRECTV customers will be able to subscribe to their local channel package -which will include a national PBS feed - for $5.99 per month. 

DIRECTV will deliver local broadcast network channels in approximately 20 markets from its satellites at 101 degrees West Longitude (WL), its primary orbital slot. As a result, DIRECTV customers in those markets can receive their local channels as well as DIRECTV's current lineup of national digital
entertainment and information programming through their existing digital set-top box and 18-inch antenna. 

DIRECTV will deliver local channels in additional cities from the 110 and 119-degree WL orbital slots. Local channels delivered from the 110 and 119 degree WL orbital slots will be received via the new DIRECTV Plus System, which features an 18-by 24-inch oval satellite dish. The DIRECTV Plus System also receives and seamlessly integrates the existing lineup of popular networks, premium movie services, pay-per-view selections and sports programming subscriptions from 101 degrees WL.

"We have been experiencing record customer growth this year," said Hartenstein. "As we enter our strongest growth period of the year, the availability of local channels on DIRECTV will enhance our competitive position and give consumers an even better reason to choose DIRECTV as their complete home entertainment video service." 

DIRECTV will support its local channel offerings with marketing, point-of-sale and advertising campaigns in coordination with its extensive consumer electronics retailing partners and affiliate satellite dealers.

Click Here for a DIRECTV Systems that supports the new satellites.

As The Legislature Turns 11/17/99

The proposed Satellite Home Viewer Act continued to be a moving target Tuesday as lawmakers tried to strike last-minute deals that would allow the Senate to vote on the bill before the end of the week.

Washington sources said early Tuesday that Sen. Trent Lott (R, Miss.) intended to file a unanimous consent request in favor of the conference committee report released about the bill, and that Sen. Tom Daschle (D, S.D.) intended to file that same document in favor of stripping the bill of the rural local-into-local loan guarantee program and the patent provisions.

With consensus from 100 senators, or unanimous consent, the Senate can bypass its traditional legislative procedure and immediately call for a vote. With dueling unanimous consent requests, however, neither senator would be able to generate that kind of support. Spokespeople for Sens. Lott and Daschle questioned midday Tuesday said neither had officially filed the request.

It was also reported that the satellite bill could get attached to an "omnibus" appropriations bill: A collection of legislation the Senate would vote on all at once before the end of the session. Sources said Sen. John McCain (R, Ariz.) is opposed to that option because he has never supported the conference committee report.

Other pieces in the democratic puzzle were introduced Tuesday by Sen. Blanche Lincoln (D, Ark.) who reportedly circulated a letter on The Hill objecting to a filibuster threat from Sen. Phil Gramm (R, Texas), who is vehemently opposed to rural loan package. That letter, which was signed reportedly signed by 24 lawmakers, asked that Sen. Lott file a motion of closure to complete the bill. 

Sources said another letter was sent to House Speaker Dennis Hastert (R, Ill.) from Reps. Barbara Cubin (R, Wyo.), Rick Boucher (D, Va.) and Bob Goodlatte (R, Vir.). This document, which was reportedly signed by roughly 150 members of the House, argued that the loan package is "critical for rural Americans" and should not be dropped from the proposed bill.

On Nov. 9 the House unanimously passed the bill generated by the be-partisan conference committee. Despite this last-minute maneuvering, at least one industry watcher said such moves are typical in the legislative process. Lawmakers continue to be optimistic about passing the satellite bill this year.

HNS Releases New DIRECTV System 

Hughes Network Systems, the Hughes Electronics unit that is quickly establishing itself in the set-top box world, released its fifth-generation DIRECTV system Monday.

The new HNS receiver is the first system capable of getting DIRECTV programming from all of the company's satellites. In addition to core programming satellites at 101 degrees, DIRECTV has a satellite at 119 degrees. There also are plans for a satellite at the 110-degree location.

The new product line includes an entry-level Silver Edition product, an enhanced Gold Edition product and a deluxe Platinum Edition product.

The products support the new DIRECTV Plus oval antenna, a slightly larger dish that connects with DIRECTV satellites throughout the full-CONUS arc. HNS is the second-largest manufacturer of digital satellite systems for DIRECTV, also a unit of Hughes Electronics. It also provides the DirecPC satellite Internet service and is a leader in the VSAT business. 

DBS Adds CSRs In The Thousands

Both DBS platforms are increasing staff at their customer care centers, not only for the upcoming holiday rush, but for the eventual arrival of local TV offerings delivered by satellite. 

DIRECTV President Eddy Hartenstein said the company has added around 1,200 new customer service representatives during the past four to five weeks to handle any increase in calls. A lot of those calls will be related to the holidays, but the company also could get inquiries on the possible start of local-into-local programming, he predicted.

Once the holidays are in full swing, DIRECTV will have 12 call centers in operation across the country. DIRECTV directly manages four of them. The others are operated by Convergys, Precision Response Corp. and West Tele-Services, DIRECTV's customer care vendors. The move to enlarge staff and operations follows a rough summer for DIRECTV's customer-support operation. The company was inundated with calls from subscribers after taking over premium programming from U.S. Satellite Broadcasting.

EchoStar also is preparing for increased calls during Christmas. The company's recently opened El Paso, Texas, customer-service operation has 300 employees. EchoStar expects to expand that number to 2,000 in the coming years, spokesman Marc Lumpkin said. Last year, EchoStar opened a call center in McKeesport, Pa. A little more than 1,000 employees work there. The company also has customer-care centers in Thornton, Colo., and at its headquarters in Littleton, Colo. 

Roughly four out of five employees at EchoStar work with the customer-service function, whether it's in management, technical support or in the CSR area, Lumpkin said. The help supports the company's growing customer base. Lumpkin wouldn't comment on the impact local TV offerings would have on customer service. To prevent an overload of calls, both companies encourage subscribers to use their remote control to order programming.

DISH Warns Subs On Distant Network Signals

EchoStar's DISH Network is informing some of its subscribers that they may lose distant network signals as a result of new legislation in Congress. 

DISH is running a spot on one of its barker channels telling subscribers that "legislation in Washington, already passed by the House, forces us to cut off your network channels." The spot also runs on distant network channels once the subscriber loses the feed.

The company said it has no choice. "This is not our decision," said an EchoStar spokesperson on the company's move to shut off distant network signals to certain subscribers. "We are very concerned that Congress has refused to protect the rights of consumers in the current legislation." 

In the televised spot, EchoStar encourages subscribers who may be impacted by the loss of distant network signals to get a waiver from local stations. EchoStar also is encouraging subscribers to call their representatives. The spokesperson said subscribers who lose distant network feeds won't be charged for the loss and will be credited if the shut-off occurs in the middle of a billing period.

EchoStar has been vocal about its disappointment with DTH legislation, passed by the House last week. The Senate is expected to take up the measure this week.  

Among the company's criticisms is the current Grade B standard governing local signal strength, a determination that can prevent some subscribers from receiving distant network signals. Legislation keeps that standard in place for at least one more year. "This further disenfranchises consumers who cannot qualify for network channels delivered by satellite due to an outdated standard that does not consider 1990s technologies," the company said in a statement.

PROGRAMMING: DISH Offers Soccer

Spanish-Language Games Available on PPV - This week, EchoStar's DISH Network has exclusively offered the Spanish-language Prelibertadores de America soccer games - in which the First Division Mexican Soccer Federation Club teams compete to qualify for the Copa Toyota Libertadores de America in 2000 - live on DISH-on-Demand pay-per-view. The remaining games will be shown on Tues., Nov. 16, and Thurs., Nov. 18, on channel 461 for $14.95 each. *Dominion Adds New Networks - Daystar Television Network has been picked up by the high-power DBS  provider Dominion Sky Angel. Three additional 24-hour channels - The Dream Network, Safe TV and Familyland - are scheduled to be added this fall to Sky Angel, a company with programming based on Judeo-Christian values.

NRTC Urges Senate Action On Bill

The National Rural Telecommunications Cooperative said "procedural stonewalling" in the Senate could scuttle pending DTH legislation, cheating millions of rural viewers out of receiving local TV signals via satellite. 

"Right now, a few people in the Senate are trying to strip this bill of the rural viewers provision that will provide local TV signals via satellite to millions of rural Americans," said NRTC President and CEO Bob Phillips. "This is shameful. The rural viewers provision was passed overwhelmingly in the House by a vote of 411-8, and it is obvious that there are more than enough votes in the Senate to pass it as well." Sen. Phil Gramm (R-Texas) is opposed to the rural viewers provision and so far has stalled Senate action on the bill. "Sen. Gramm is ignoring the interests of his own rural constituents in Texas - where there are the most satellite subscribers in the United States - as well as the interests of the rest of the Senate and the rest of rural America," Philips said. 

DIRECTV Gives Away NFL Sunday Ticket

As part of its usual sales effort for the holidays, DIRECTV is offering the last six weeks of the '99 NFL Sunday Ticket free to new residential customers.

The offer, which runs from Nov. 22 to Dec. 12, is available to all new DIRECTV residential customers who purchase a system from an authorized retailer and subscribe to a Total Choice programming package.

The package delivers up to 13 NFL games every Sunday during the regular season. Consumers who take advantage of the special offer will receive up to 71 games between Nov. 28 and Jan. 2. Local blackout rules apply. Click Here for details.

Satellite Legislation Picture Becomes Clearer - 11/03/99

Satellite industry representatives continued to voice their disapproval Tuesday with a number of provisions in the latest draft of the Satellite Home Viewer Act. 

Sources said the House has scheduled a vote on the legislation later this week, but it's likely that vote will get pushed back. Currently, the Congressional session is scheduled to end late next week.

Staffers working for the House-Senate conference committee continued to met Tuesday and are scheduled to meet again today to finalize certain issues in their draft bill before presenting it to the committee. Two complications that arose late last week - and that sources said haven't been addressed yet - had to do with unofficial objections from the House and Senate banking committees about a proposed rural local TV service loan guarantee program and with proposed distant network standards provisions. 

There are a few positive things in the draft for the satellite industry. As expected, it authorizes local-to-local service. It allows three years before satellite companies would have to provide full-must carry. And sources said the bill would lower copyright fees paid by satellite companies for the right to air network programming. National Association of Broadcasters spokesman Dennis Wharton said satellite companies are "at the end of the day getting a hell of a lot."

However, the Satellite Broadcasting and Communications Association (SBCA) has forged ahead with its attack on certain provisions in the bill. For instance, according to the SBCA, the draft lacks a retransmission consent phase-in period, limits the number of distant network signals consumers can receive and imposes blackout rules.

"SBCA and its members urge Congress and the House-Senate conferees to reconsider the current direction of the bill," the organization said. "There is still time for Congress to take the right stand and act quickly to provide American consumers with the competitive video choice they deserve."

EchoStar Loss Widens-Revenues Up

EchoStar's net loss widened during the third quarter, and the company reported negative cash flow due to growing marketing and operating expenses related to the phenomenal growth of its small dish service. 

Revenues for the three-month period saw a healthy jump. EchoStar's net loss for the quarter was $124.4 million, compared to a loss of $52 million reported in the year-earlier period. Revenues increased 82 percent to $427.5 million. Record subscriber growth, which totaled 375,000 for the quarter, resulted in increased marketing and operating costs. Because of that, cash flow registered at a negative $47 million during the three-month period. That compares to $9 million with smaller subscriber additions during the same period in 1998.

ON TV: DIRECTV Gets Second HDTV Channel

*New DIRECTV HDTV Channel Debuts Monday - DIRECTV will launch its second HDTV channel featuring pay-per-view movies and selected special events - including concerts and sporting events - beginning Nov. 1. The offering will appear on channel 199. The channel will be available to consumers nationwide who own a DIRECTV-enabled HDTV set or digital set top converter box. HDTV pay-per-view movies will be available for $4.99 each.

DIRECTV Gets Fox-Is NBC Next ???????

DIRECTV hopes its retransmission agreement with Fox will provide the right incentive to lure the other three networks into deals that will allow the DBS giant to carry their local stations.

"We are talking to all of the necessary parties to make delivery of local channels a reality," DIRECTV spokesman Bob Marsocci said. "We expect to make similar announcements in the near future." Marsocci said the Fox deal will hopefully provide "the incentive needed to get the other broadcasters" to complete retransmission

agreements with DIRECTV. Rumored to be the next network to join up with DIRECTV is NBC. The broadcast giant recently closed deals with the DBS provider for carriage of its MSNBC and CNBC networks.

There was no comment available from the companies on the NBC move. On Wednesday, DIRECTV and Fox Entertainment announced a multi-year deal under which DIRECTV will provide its customers in major metropolitan areas with signals from local Fox stations. Fourteen of 22 Fox stations reside in the top 20 TV markets. DIRECTV was granted retransmission consent rights to the other Fox-owned stations for potential local-into-local services in the future.

Financial terms weren't disclosed for the Fox/DIRECTV deal. EchoStar's DISH Network also has a retransmission agreement in place with Fox. The three-year deal was announced between the two companies in June. 

DIRECTV Announces Airborne Plans 9/30/99

DIRECTV announced Tuesday that DIRECTV Airborne, a live satellite entertainment service for commercial airlines, will make its in-flight debut this fall.

Alaska Airlines, Legend Airlines and JetBlue Airways - the latter two being new airlines - will carry DIRECTV Airborne. The service will be viewed on in-flight equipment provided by LiveTV. An antenna will sit on top of the aircraft's fuselage and receive programming from DIRECTV satellites located at the 101 degree orbital slot. 

Passengers will be able to privately view DIRECTV Airborne on flat screens installed in each seat back. The in-flight programming service will feature 24 channels including four ESPN networks, Bloomberg Television and several channels from Discovery Networks. 

DIRECTV Broadcast Deal In Works 9/28//99

DIRECTV may announce a local station carriage deal with a broadcast network, possibly next week. DIRECTV President Eddy Hartenstein, speaking at the Broadcasting and Cable conference in Washington, D.C., said a deal is in the works, but he didn't identify the company. However,

Fox Entertainment Co-Chairman Chase Carey said he expected to have an agreement with DIRECTV in the near future. 

DIRECTV and competitor EchoStar need the agreements to carry local TV stations. Both reportedly have been negotiating agreements in preparation for passage of satellite legislation.

DIRECTV Unveils Spanish-Language Packages 9/24//99

DIRECTV will debut its "DIRECTV Para Todos" Spanish-language programming service on Oct. 15, unveiling the offering first in Miami, Houston and the San Francisco area before taking it national.

The nationwide roll out will take place over a six month period. The package will offer more than 30 Spanish-language national and international channels, focused on everything from news and educational programming to sports and movies. 

Networks included in the offering are Univision, Discovery en Espanol, Fox Sports World Espanol, MTV S, TV Chile, and CNN en Espanol. The service will offer two bilingual packages. The first option, providing 14 Spanish-language channels and 24 English-language channels, will sell for $19.99 a month. A second offering with 21 Spanish-language channels and 77 English-language channels will sell for $31.99 a month.

DIRECTV will use satellites at 119 degrees and 101 degrees for the Spanish-language offerings. A slightly larger oval dish and equipment will bring down signals from both orbital locations. 

EchoStar 5 Takes Off From Cape

LITTLETON, Colo. - EchoStar employees at the company's headquarters here cheered as the DBS provider's fifth satellite and its rocket cleared pad 36A at Cape Canaveral Air Station in Florida. Early Thursday morning, EchoStar 5 was put into a transfer orbit, in preparation for its final destination at 110 degrees, by an Atlas 2AS rocket.

Chairman Charlie Ergen said the satellite will help the company with local channels, HDTV and data services. He also reiterated the need for new legislation and getting Congress "to allow us to compete with cable and let us deliver local channels." The satellite, built by Space Systems/Loral in Palo Alto, Calif., is a key item in the company's effort to offer local channels.

In addition to EchoStar 5, Globalstar and its main backer Loral Space and Communications celebrated Wednesday's successful lift-off of four more low-earth-orbit satellites that will support the worldwide sat-phone system. The Globalstar flight, which occurred aboard a Soyuz-Ikar rocket launching from the Baikonur Cosmodrome in Kazakhstan, initiated a busy week for rocket launches involving U.S. companies. 

The launch brings the total number of Globalstar satellites now in space to 40. Meanwhile, an Ariane rocket will launch a satellite for Loral Skynet on Saturday. Telstar 7, the satellite that will anchor Skynet's cable neighborhood, will be carried aboard an Ariane-4 rocket from the European Space Agency's launch center in Kourou, French Guiana. Lift-off is set to happen between 3.29 a.m. and 4.29 a.m. Eastern Time.

DIRECTV Launch Target Set Oct. 10

It's expected that the launch target date for DIRECTV's next satellite, DIRECTV 1R, will be Oct. 10. The rocket and satellite will launch from the ocean-based Sea Launch platform. An official announcement regarding the DIRECTV launch is expected today from the DBS provider and Sea Launch.

Just like EchoStar's launch of its fifth satellite, the flight of DIRECTV 1R isn't set in stone. The Oct. 10 date is considered a target. 

The $500 million Sea Launch project has been under development for the past four years. Boeing owns 40 percent of the consortium. Partners include RSC Energia of Russia, KB Yuzhnoye/PO Yuzhmash of the Ukraine and Norway's Kvaerner.

Interactive TV To Generate Billions 

Observers predict that interactive TV and other enhanced television products will generate billions of dollars in advertising and commerce over the next five years. 

And helping to make those gains will be DBS. In research presented in September's SkyREPORT publication, Paul Kagan Associates predicts that interactive and enhanced TV services will generate nearly $1 billion in revenues by 2002 and reach more than 5 million households.

Forrester Research forecasts that in five years TV-based web browsing will generate $11 billion in advertising and billions of dollars in commerce.

The nation's two DBS providers have entered the interactive TV game, forming partnerships with top services and beginning the roll-out of new set-top boxes.

DIRECTV has deals in place with America Online and AOL TV, personal television service TiVo and Wink Communications. EchoStar has WebTV and OpenTV in its corner. Sometime this fall, EchoStar's DISHPlayer will offer personal TV services.

Meanwhile, Pioneer Consulting forecasted Wednesday that total global broadband satellite revenues will increase from around $200 million in 1999 to $37 billion in 2008. The firm's latest report, "Next Generation Broadband Satellite Networks," said residential service will represent the majority of revenue gains, accounting for almost $22 billion of revenues in 2008.

Motorola Gets GI For $11 Billion 

Communications giant Motorola will buy General Instrument in a stock deal valued at about $11 billion. The merger will allow both companies to take advantage of their existing technologies in the booming broadband business. General Instrument is big on cable-based technology. Motorola is known for its wireless communications products.

Under the deal, each share in General Instrument would be exchanged for a little more than half a Motorola share. Ed Breen, chairman and chief executive of General Instrument, will lead a new Motorola unit focused on integrated and interactive broadband ccess. Liberty Media Group, which owns 21 percent of General Instrument and is its largest shareholder, agreed to back the merger.

Hopes Jump For DTH Legislative Movement

Washington insiders following the development of the Satellite Home Viewers Act said Tuesday it's likely conference committee staff members will meet this week, and the full committee may sit down for the first time as early as next week. This Spring, both the House and the Senate passed bills addressing issues such as local-into-local network service and must-carry rules. Due to differences in each bill, however, merging the legislation has fallen to a Congressional conference committee. In the interim, some satellite TV customers have already lost their network service, with additional shut-offs scheduled for later this year. 

Competing issues on the national agenda and Congressional recesses have deterred work on the new satellite legislation, although staffers have met to discuss jurisdictional issues related to revising the new legislation. Similar talks are rumored to be happening this week in anticipation of an upcoming conference committee meeting.

NRTC Addresses DIRECTV Dispute 

NEW YORK - The National Rural Telecommunications Cooperative would consider operating its own satellite, leasing capacity or appealing to the government for assistance in order to ensure local network service for rural DBS subscribers, the organizations president said Thursday. "I think we need to be creative, but we need to find a way to serve those markets," NRTC President

Bob Phillips said at the 12th semi-annual SkyFORUM satellite industry financial symposium. The event, which logged roughly 335 pre-registrants, included interviews with other industry executives and panel discussions about issues shaping the future of the direct broadcast satellite business, such as interactive television and the multiple dwelling unit market.

SkyFORUM was held at the Marriot Marquis Hotel in New York City. In addition to talking about the importance of local-into-local service to the NRTC, Phillips reviewed the cooperatives current legal dispute with DIRECTV regarding the right to distribute premium channels previously managed by U.S. Satellite Broadcasting. He said he is optimistic the two parties will reach an agreement but the NRTC remains committed to taking the matter to court should that be necessary. "We are prepared to go the distance," said Phillips. 

One of the largest companies affected by the outcome of the litigation is Pegasus Communications. The president and CEO of that company, Marshall Pagon, also spoke during an on-stage SkyFORUM interview. Pegasus Satellite Television is the largest independent provider of DIRECTV in NRTC areas.

Pagon also underscored his hope that Congress will pass favorable legislation regarding the local-into-local issue. "Few people in our industry understand how dysfunctional the process is for determining if customers are eligible for distant signals," he said.

And Pagon said rural areas continue to represent a growth market for satellite television, predicting that some rural markets could reach as much as 40 percent DBS penetration in the near future. "Cable systems are small and not being upgraded," he said.

"I think you will see continued growth of penetration for DBS providers." 

DIRECTV: More Local Channels At 101 

DIRECTV said it's ready to deliver local broadcast network channels for up to 20 markets from its satellites at 101 degrees, the company's primary orbital slot.

The new effort is a change from the company's original plan to deliver local channels from the 101-degree location for only New York and Los Angeles. Satellite delivery of local broadcast stations still requires the passage of legislation now before Congress.

DIRECTV also plans to deliver local broadcast network channels to additional markets from satellites at 110 degrees and 119 degrees. DIRECTV said its initial plans call for the delivery of local channels by satellite to approximately 50 million homes, or about half of the nation's television households.

DBS Execs Focus On Local Channels

NEW YORK - Leaders for the nation's two DBS platforms focused on delivery of local channels via satellite at Thursday's SkyFORUM symposium in New York City. 

DIRECTV President Eddy Hartenstein spoke about his company's plans to deliver local broadcast network channels for the top 20 TV markets from its prime orbital location at 101 degrees. He said DIRECTV will be ready to deliver channels for those markets "as soon as legislation passes." Since current satellite TV rules will lose their effectiveness at the end of the year, rtenstein stressed the need to get legislation passed before the end of the Congressional session. There is hope a bill will be signed by mid-October, "but realistically it could be around the end of October," he said. Hartenstein also said there won't be any trouble getting retransmission consent for the local-into-local effort. "That's not going to be a problem. We're pretty comfortable with that," he said.

He denied that his company is making any exclusive deals with broadcasters. EchoStar Chairman Charlie Ergen estimated that the company's local channel effort could center on 50 to 60 markets. But must carry mandates and other legislative items may hinder aggressive plans for local channel delivery.

"I would need to see what the local-into-local legislation says, then I can tell you (how many markets EchoStar can serve)," he said. He added, "I hope Congress will do the right thing for the consumer and for the industry."

The satellite that could become the centerpiece of the company's local channel effort, EchoStar 5, is expected to launch next week, Ergen said. The flight for the new satellite has been delayed wice due to weather and factory testing issues with the rocket. 

AOL and Hughes Harness the Power of Satellite

DIRECTV is about to take your television viewing experience to a new level -- thanks to an important alliance between America Online and Hughes Electronics, DIRECTV's parent company.

These two industry leaders have announced plans to develop integrated Internet and digital entertainment services -- all backed by a significant AOL investment in Hughes. The result?
A nationwide interactive television platform that cable and other multi-channel services will find hard to match.

The new service, called AOL TV/DIRECTV, will let you interact seamlessly between AOL TV and DIRECTV. Using your existing DIRECTV dish and a new set-top box, youll enjoy access to the Web, e-mail, chat, data-enhanced video, online shopping and other features right through your television. The AOL TV/DIRECTV System, available in the first half of 2000, will have a keyboard, a remote control and a hard disk drive. The systems set-top box will send data through a built-in 56k modem over standard phone lines. Plus, it will be equipped to support digital subscriber line (DSL) technology, where available.

Good News for Your Desktop, Too
Looking for broadband Internet access through your personal computer? Youll find it in AOL and Hughes new broadband satellite service -- AOL Plus via DirecPC, available in early 2000. The DirecPC network puts the power of broadband to work where it works best -- downloading Web pages and other enriched data at speeds up to 14 times faster than the standard 28.8kbps analog modem. Find out more about DirecPC Click Here for details.

DIRECTV Gets     DreamWorks

DIRECTV, DreamWorks Offer HDTV - DIRECTV announced an agreement with DreamWorks to air the studio's pay-per-view films in high definition format (HDTV) for DIRECTV subscribers.

DIRECTV will begin offering HDTV films later this year.

PrimeStar Customers Boost DIRECTV Subs

DIRECTV added 117,000 net new subscribers last month, pushing the company's total number of digital satellite television customers up to approximately 7.4 million. 

That number includes customers subscribing to the PrimeStar by DIRECTV service. DIRECTV, a unit of Hugh Electronics, completed its purchase of the PrimeStar medium-power DBS service earlier this year. The company began transitioning former Primerstar customers to DIRECTV service last month. At the end of June, PrimeStar by DIRECTV subscribers totaled roughly 2.1 million. 

DIRECTV's June subscriber additions represented a record for that month with a 46 percent increase in net customer acquisition over June 1998. 

Do Not Mess With Retransmission Deals 

Top executives with the four major networks told key lawmakers on Capitol Hill that the government shouldn't get involved with retransmission consent negotiations between local broadcasters and satellite providers.

In a letter addressed to House and Senate members appointed to a conference committee eyeing satellite legislation, the four network heads said retransmission agreements should be based on free-market conditions, not government determinations.

"Both sides have strong incentives to negotiate retransmission consent deals, and the marketplace, not the Federal Communications Commission, should determine the value of those agreements," they told conferees. "Furthermore, federal regulations already prohibit exclusive retransmission consent agreements between a broadcaster and any multichannel video provider.

"We believe it is inappropriate for the government to inject itself into the private negotiations between two parties, especially when no compelling evidence exists that either party has, or likely to refuse to negotiate."

ABC Chairman Bob Iger, CBS President Mel Karmazin, Fox Television Chairman Chase Carey, and NBC President Bob Wright signed the letter sent to conferees. Chuck Hewitt, president of the Satellite Broadcasting and Communications, criticized the letter. "We urge Congressional legislators not to be overly optimistic that market-based conditions will ensure efficient retransmission consent agreements that will benefit consumers," he said. "The satellite industry, with virtually no local network subscribers, does not have the market power to obtain retransmission consent on terms that will allow it to provide effective competition to cable," Hewitt said. 

DIRECTV Part Of AOL Broadband Tapestry 

Even though America Online has the nation's leading satellite TV service in its corner, the Internet provider said it won't end its quest to gain access to cable's broadband platform.

AOL Chairman Steve Case, speaking during his company's announcement regarding an investment in Hughes Electronics and DIRECTV, reiterated the service's stand that all broadband foundations, including cable's offering, "be open and non-disciminatory" to all providers.

Case went further, saying AOL will make a play not only across cable and satellite platforms, but will have a role in developing wireless broadband offerings and xDSL services from phone companies. He called it AOL's "anywhere,

anytime, any-speed" initiative, where "America Online will play across all technologies, forming a broadband tapestry." Under a deal announced Monday, Hughes and America Online will step up its efforts to provide television and interactive services through the DBS provider and other Hughes companies.

For its part, AOL will market the DIRECTV/AOL TV package to more than 16 million AOL and CompuServe members as well as to millions of consumers who see the Internet brands.

DIRECTV also will market AOL TV to its 7 million-plus subscribers and to potential new subscribers through its retail network. 

Hughes will make AOL-Plus available nationwide via the DirecPC satellite Internet network by early 2000. The effort builds on America Online's recently announced partnerships with Bell Atlantic and SBC Communications to deliver xDSL broadband connectivity to AOL members.

Hughes also will expand its DirecDuo line that combines DirecPC and DIRECTV products. Hughes Network Systems, which provides the DirecPC system and service, will design and initially manufacture the combination DIRECTV/AOL TV set-top receiver. Part of Monday's announcement included a deal Hughes Network Systems made with Intel for the integration of Intel microprocessors and other technologies into interactive boxes.

The alliance also will nurture the development of Hughes' next-generation satellite system for two-way, broadband connectivity known as Spaceway. The service is scheduled to launch in 2002.

DIRECTV-Ready Homes On Horizon

DIRECTV signed a marketing and distribution agreement with Digital Interiors, a leader in the installation and integration of residential electronic systems.

The San Jose-based firm will create "DIRECTV-ready" homes through its in-home wiring distribution system that integrates DIRECTV with other technologies, enabling homeowners to seamlessly access electronics and services throughout the house. The system also has capabilities for Hughes' DirecPC service. Digital Interiors will initially focus on homes being built in the Northern California area with its offering, eventually expanding nationwide. Home builders Digital Interiors will work with include Kaufman and Broad and Pinn Brothers.

 DIRECTV-NAB Partner For Legislative Proposals 

The National Association of Broadcasters and DIRECTV are working together on Capitol Hill, offering lawmakers who are drafting a final satellite bill their ideas for a comprehensive legislative package.

The two have partnered in the past, forging deals on the shut-off of distant network signals to DIRECTV subscribers deemed ineligible to receive the feeds. After announcing their agreement Thursday, both promised to work for passage of points in their legislative "outline," which covers everything from local-into-local service to distant network signals. 

"While this agreement does not represent either party's 'perfect solution,' it does provide a balanced equation which we both believe will work fairly in the marketplace and enable both broadcasters and satellite providers the opportunity to compete aggressively in the ever-expanding video marketplace," the two sides said in their letter to House and Senate conferees working on satellite legislation. 

NAB President Eddie Fritts and DIRECTV President Eddy Hartentstein signed the letter. In their outline sent to lawmakers, both DIRECTV and the NAB encouraged the establishment of a local-into-local compulsory license.

The local market eligible for the signals would be defined as the area DMA. The Federal Communications Commission would create and apply must-carry rules for satellite. The agency also would be instructed to take into account capacity issues and differences between DTH and cable when developing its rulemaking.

Regarding retransmission consent, the two suggested that anti-discrimination provisions currently part of the House's DTH bill should be dropped, and the FCC's prohibition on exclusive retransmission would be codified without reference to any sunset.

Under other legislative proposals outlined by DIRECTV and NAB, the Longley-Rice standard used to determine subscriber eligibility for distant network signals would continue to be utilized and become part of copyright law. 

The FCC would make a rulemaking to update the standard to take into account structures and land variations that hinder local signals. 

The agency, however, wouldn't have the authority to change the signal intensity standard. The two entities also said they would "support provisions which would provide incentives for carriers and broadcasters to expand the delivery of local channels to smaller markets." 

They don't support, however, mandated carriage of local signals in those markets. Missing from the action was EchoStar. An NAB official said they haven't held discussions with the satellite provider, but "we certainly would work with them." 

ON TV: DIRECTV Readies Reorganization

*DIRECTV Creates Channel Neighborhoods - On July 20, DIRECTV will reorganize its channels into "neighborhoods" grouped by theme. Channels 100 through 199 will be pay-per-view; 200 through 340  will be entertainment and arts; 350 through 399 will be news and information; 500 through 550 will be premium movies; 595 through 599 will be adult programming; 600 through 799 will be premium sports; and 800 through 899 will be music channels. Also on July 20, DIRECTV will begin carrying the Spanish channels Univision and Galavision. Other special programming coming up on DIRECTV includes a free concert by Tom Petty and the Heartbreakers on July 17 and a series of classic episodes of "The Johnny Carson Show" from July 2 through July 8.

DIRECTV-STARZ! Launch Dolby Digital Offering

Encore Media Group and DIRECTV have teamed up to offer a series of movies in Dolby Digital 5.1 theater-quality audio to standard definition premium channel viewers.

The first film in Dolby Digital will be "Armageddon," starring Bruce Willis and Ben Affleck, which will air on Encore's STARZ! network June 29 at 10:15 PM ET/PT. STARZ! and DIRECTV will continue the AC-3 Dolby Digital signals with upcoming films such as "Six Days Seven Nights," "Lost in Space," "ConAir," "Blade," "54," and "The Wedding Singer." Dolby Digital 5.1 channel surround offers high-quality sound by delivering five discrete, full-fidelity audio channels plus a sub-woofer channel. Stephanie Campbell, senior vice president of programming for DIRECTV, said, "This is exciting news for DIRECTV customers who have come to expect nothing less than the best and the latest in digital picture and sound technology."

Orbit reduces DIRECTV Equipment prices by more than 40%

With the cooperation of DIRECTV Orbit Communication Corp. Is now offering DIRECTV System for as little as $39.95 including a FREE installation Kit.

The best part of this promotion is that Orbit did the same on standalone receivers giving existing DIRECTV customers the chance to upgrade to a newer and better receiver at a discounted price. Standalone receiver prices when down by as much as 60%. and now start at $99.95 For more details Click Here.

FCC OKs DIRECTV Purchase Of USSB

Hughes Electronics and DIRECTV won approval from the Federal Communications Commission to buy U.S.Satellite Broadcasting for $1.3 billion.

The acquisition, announced in December, will boost competition with cable, the agency said in its decision. "This acquisition serves the public interest by promoting competition and giving consumers more choices in video programming,"

FCC Chairman William Kennard said in a statement. The DIRECTV acquisition won the blessing of Justice Department regulators in February. The deal still needs USSB shareholder approval.

DIRECTV Adds BBC America

DIRECTV, under a deal with Discovery Communications and British Broadcasting Corporation, added BBC America to its line-up.

The network, delivering top British television shows to U.S. cable and DTH viewers, is on channel 283. BBC America will appear in all Total Choice packages at no additional cost to subscribers.

Wholly owned by the BBC, BBC America is distributed by Discovery Networks as part of a global alliance between the two companies. BBC America launched on March 29.

Comcast Gets Broadband Broncos?

Is Comcast buying the Denver Broncos? April 1 banter had the Philadelphia cable/broadband company, which is acquiring Colorado-based MediaOne, targeting another hot Mile High City property: The  two-time Super Bowl champions.

A week ago, Comcast "surprised the state of Colorado and the cable industry" with its purchase of MediaOne, a broadband services company headquartered in Englewood,   a Denver suburb. In an anonymously-sent, bogus press release circulated April Fools Day, CEO Brian  Roberts (probably unknowingly) stated not only would Comcast move the Broncos to Philadelphia, "We're developing a joint venture with Microsoft to display the Broncos via the Internet: They'll be the Broadband Broncos.

"But we do expect to maintain a Denver presence. Part of the transaction gives us naming rights to Denver's new stadium, which we'll call 'Comcast @Home Field.' That should give us an advantage in having a conventional team playing there within a few seasons."

Surrounding the April 1 merriment was the fate of the Philadelphia Eagles, one of the worst teams in the NFL last season. Also at issue were future plans for Former Denver Broncos owner Pat Bowlen. When asked about Bowlen's plans, Roberts (again, probably unknowingly) responded, "He told me that he wants to do some more fur trapping and intensive Ironman training."

In addition to the "Broadband Broncos," Comcast "really owns" the Philadelphia Flyers hockey team and 76ers basketball franchise.

News Corp. Eyes Control Of FOX/Liberty Nets

News Corp. will soon acquire full control of the 50-50 FOX/Liberty sports and television joint venture, the Los Angeles Times reported.

Liberty Media will give its 50 percent stake in exchange for about $1.4 billion in News Corp. stock, according to the newspaper. Liberty, now a unit of AT&T, would become one of News Corp.'s largest shareholders, with a 5 percent stake.

Fox/Liberty's holdings include FX, Fox regional sports networks and interests in additional regional sports channels. The partnership also has stakes in Speedvision, Outdoor Life Network and the Golf Channel.

Liberty also would sell Murdoch its part of Fox/Liberty's 40 percent stake in the Staples Center under construction in downtown Los Angeles.

Included in the deal is the partnership's 40 percent stake in the New York Knicks basketball team, the New York Rangers hockey team, Madison Square Garden and Radio City Music Hall. Interests in the News York teams and properties are held in a partnership with Cablevision Systems, which maintains control.

DISH Launches Nature's Sunshine Network 3/26/99

DISH Network announced the launch of Nature's Sunshine Network (NSN), a new network that broadcasts training and sales presentations about Nature's Sunshine Products.

NSN will air on DISH channels 900 or 901, and broadcasting times can be obtained by calling Nature's Sunshine

The NAB's Dirty Little Secret

According to the National Rural Telecommunications Cooperative, "that rabbit doesn’t hunt," at least when it comes to a rabbit-ears antenna.

The NRTC stepped up its criticism of the National Association of Broadcasters and their claims that "rabbit ears" or other small antennae "were all that stood between consumers and access to network TV signals.

" According to the organization, the NAB is hiding behind the "dirty little secret" of the broadcast industry - that a TV antenna doesn't work well in many rural areas.

Worse yet, the NRTC said broadcasters continue to promote inadequate solutions after several hundred thousand consumers, many of them in rural areas, were disconnected from satellite-delivered CBS and FOX network signals. Those consumers lost their signals as the result of a federal court injunction requested by the broadcasters.

"It is one thing for the NAB to wave a small antenna around at a press conference and make claims about its performance. That type of rhetoric happens all the time in Washington. But when that rhetoric runs contrary to everything rural consumers know to be true, we have to tell the real story," said Bob Phillips, NRTC President and CEO.

Orbit Now Offering DVB Satellite System For Free-To-Air Digital Channels

Click Here For More DetailsWith More than 12 Arabic Channels and several ethnic channels such as TV-Asia & ANT.This package is available through the Loral Telstar 5 Satellite in Ku-Band. The signal is modulated in MPEG-2 DVB (NTSC). This package does not require a subscription and can be received through the receiver MPEG-2 receiver that we sell. If you are a C-band Customer you will need a special scaler ring with a built in LNBF. If not you can use the complete system listed in the DVB page which will include a 30" satellite dish with an LNBF and Receiver. We have also added a Chart of available channels in Free-To-Air MPEG-2.

DISH Broadcaster Case Lands In Miami 3/25/99

EchoStar's beef with broadcasters is going to Miami, where previous court decisions regarding distant network signals have led to widespread shut-offs of the controversial feeds.  During a hearing Wednesday, a Colorado-based federal District Court forwarded a challenge, filed by EchoStar in relation to delivery and reception of network signals, to Miami. The South Florida courts have become a battle ground between broadcasters and satellite interests, including PrimeTime 24 and DIRECTV, over the delivery of distant network signals.

"EchoStar had hoped to present its case before a court with firsthand experience of the effects of trees and mountains on TV signal reception," the DBS provider said. "(The company) is disappointed that the case is being referred to a court located in the flattest part of the country."

The Miami federal court was behind the injunction that forced the shut-off of distant network signals on Feb. 28. Also last month, the court ordered DIRECTV to cut off distant network signals to ineligible subscribers.

House Panel OKs Coble Bill

The House Judiciary Committee approved a bill from Rep. Howard Coble, North Carolina Republican and chair of the House Courts and Intellectual Property Subcommittee, that would allow for satellite-delivered local-into-local services.  

Lawmakers also signed off on an amendment authored by Coble and California Democrat Howard Berman that would forbid delivery of distant network signals to DTH customers in a specific market after a DTH company begins carrying two or more local channels in that same area. Coble and Berman said the potential loss of distant network signals was needed to create a strong incentive for satellite services to start offering local stations.

Virginia Democrat Rick Boucher pointed out that the provision would cut off signals to subscribers of one service if another provider offered local stations in the subscribers' market. "One platform or the other through this amendment will be disenfranchised," Boucher said.

The provision could impact distant network programming delivered by DIRECTV, which doesn't have any local-into-local plans. EchoStar wants to deliver local stations to the 70 largest markets over the next few years.

Broadcasters, opposed to the delivery of distant network signals, applauded the vote. National Association of Broadcasters President Edward Fritts called the bill "a terrific approach" in a letter thanking Coble.

USSB Wins PPV Court Fight

U.S. Satellite Broadcasting won a suit it filed in Sacramento federal court claiming that a California tax on pay-per-view events unfairly singled out ring sports such as boxing.

A U.S. District Court judge ruled California's "Boxing Act" violates the First and Fourteenth Amendments in the U.S. Constitution by imposing a five percent gross receipts tax on pay-per-view telecasts of boxing, wrestling and martial arts events.

The court declared "television broadcasts constitute speech" and that California's "selective application of the (tax) to boxing telecasts and boxing telecasts alone constitutes exactly the kind of judgment about content which the First Amendment does not allow California to make." The court further found the state had "failed to bring forward any evidence suggesting that the Boxing Act tax is necessary to advance a compelling interest and narrowly tailored to achieve that goal."

The suit was filed and argued on behalf of USSB by Bernard Nash of the Washington, D.C., law firm of Dickstein Shapiro Morin and Oshinsky.  A large part of USSB's sports focus is on boxing. Included in that effort is a pact the company made with boxing promoter Don King for a series of matches found on the DBS provider's channels.

DIRECTV, Broadcasters Settle Dispute

DIRECTV, the four major broadcast networks and their affiliate associations reached a settlement dismissing the Miami copyright lawsuit filed last month against the satellite provider.  The lawsuit concerns a dispute over delivery of out-of-market network programming to certain DIRECTV subscribers.  Under terms of the settlement, DIRECTV, stations and the networks agreed on a timeframe to disconnect distant broadcast network signals from subscribers found to be ineligible for the feeds. They will use the new Individual Location Longley-Rice (ILLR) model recommended last month by the Federal Communications Commission, according to the companies. 

Under the settlement, DIRECTV subscribers who are predicted to receive a signal of "Grade A" intensity will lose receipt of CBS, Fox, ABC and NBC signals on June 30. Current DIRECTV subscribers who are predicted to receive a signal of "Grade B" intensity will lose receipt of ABC, CBS, Fox and NBC signals on Dec. 31.

Subscribers who obtain the consent of affected affiliate stations will not lose receipt of their distant network signals. The parties have agreed to provide consumers who will lose service with advance notification in writing, which will include consumer-friendly advice about a discount offer from DIRECTV for the acquisition of an off-air antenna.  

Antenna Mandate Surfaces In DTH Bill 3/12/99

Lawmakers added an amendment to satellite legislation that would require DTH companies to provide an off-air antenna to subscribers deemed ineligible for distant network signals.

Observers said it's too early to tell what impact the amendment, debated before the House Courts and Intellectual Property Subcommittee, would have on DTH companies. However, the mandate mirrors a demand from National Association of Broadcasters' CEO Eddie Fritts calling for home satellite providers to give their customers an off-air antenna for local signal reception.

Fritts issued the challenge two weeks ago.

The provision, offered by Virginia Rep. Bob Goodlatte, states that if a subscriber's distant network service is terminated due to ineligibility requirements, "the satellite carrier shall provide to the subscriber free of charge an over-the-air television broadcast receiving antenna that will provide the subscriber with an over-the-air signal of Grade B intensity for those network stations that were terminated."  Coble's bill, approved by the subcommittee, also would allow for local-into-local broadcasts and reauthorizes satellite's compulsory license, set to expire Dec. 31, for another five years. 

Bliley: DTH, Broadcasters Need Agreement 3/9/99

House Commerce Committee Chairman Thomas Bliley said broadcast and satellite interests need to resolve the distant network signal issue before his panel acts on a pending DTH bill.  Bliley, speaking before a conference sponsored by the National Association of Broadcasters, didn't give the two industries a deadline for hammering out an agreement, but indicated he wanted the two sides to act quickly on the dispute.

The bill, which was unanimously passed by the House Telecommunications Subcommittee last week, would temporarily restore distant CBS and Fox feeds. A federal court judge in Miami ordered the cut-off, which occurred Feb 28.

DISH Fights DIRECTV On 119 Slot

EchoStar's comments filed with the Federal Communications Commission asked the agency to deny DIRECTV's acquisition of assets controlled by Tempo Satellite, the entity loosely associated with PrimeStar that controls a satellite and 11 frequencies at 119 degrees. 

That orbital location, which covers the continental United States, is shared with EchoStar's DISH Network service. 

The filing, first reported by SkyREPORT Monday, states that EchoStar isn't opposed to DBS operators using two full-CONUS DBS slots, as proposed by both companies. But DIRECTV's use of three locations "requires a comparatively substantial fleet of less-efficiently deployed satellites. 

"Until a dish viewing all three orbital full-CONUS locations becomes a reality, access to all of these locations is likely to be less important to creating more effective competition to cable," the filing states. "Accordingly, until a so-called 'triple-feed' dish becomes available, a three-slot offering will require the use of multiple dishes."

EchoStar also questioned Tempo's original use of its 11 frequencies at 119 degrees, and whether the company's satellite, which hasn't been used since its launch in March 1997, is parked in the prime location to prevent EchoStar from expanding its service.

"In evaluating the proposed assignment, the commission should also assess several concerns regarding Tempo's diligence," the filing states. "Among other things, in several other pleadings, EchoStar has argued that the primary purpose underlying Tempo's behavior appears to have been to prevent EchoStar from using these 11 channels with its two 16-transponder satellites located at 119 degrees."

EchoStar At Center Of Filings 3/8/99

Outdoor Life Network and Speedvision sent the Federal Communications Commission its answer to a program access complaint filed by EchoStar against the two networks. Meanwhile, reports also surfaced that EchoStar has filed a protest against the PrimeStar/DIRECTV deal. 

The Speedvision/Outdoor Life complaint, concerning the networks' deauthorization of EchoStar's receipt of programming on Dec. 7, alleged breach of packaging requirements under the parties' carriage agreement.

The two channels said EchoStar's program access complaint is nothing more than "a strategic and political move by EchoStar to, at once, divert the networks' time, energy and resources away from their pending breach of contract claim in federal district court, and simultaneously further EchoStar's political agenda in Washington."  The decision to terminate EchoStar's receipt of programming was "an entirely lawful and appropriate business response to EchoStar's egregious conduct leading up to, and culminating in, EchoStar's breach of the most important term of the parties' carriage agreement, barely two weeks after entering into a deal that the networks had pursued for three long years," according to the two networks. 

Meanwhile, EchoStar reportedly filed with regulators its opposition to parts of the DIRECTV/PrimeStar acquisition deal. Because of the weekend, details were sketchy about what the filing was about, but comments are believed to center around DIRECTV's acquisition of orbital spectrum.

DIRECTV Offers 3 months of Free Programming

DIRECTV is launching a national retail and marketing promotion offering three months of complimentary programming and free installation of equipment for new customers. The offer is available to customers who purchase a DIRECTV system between March 11 and April 25 and activate DIRECTV Total Choice programming by May 7.

Upon subscribing, customers will receive three free months of Total Choice programming, a $89.97 value.

To support the effort, DIRECTV is launching a national advertising and point-of-sale campaign. You can read more details about this offerr by Clicking Here.

Tauzin Bill Gets Subcommittee OK 3/5/99

The House Telecommunications Subcommittee approved a bill Thursday that aims to restore DTH-delivered CBS and Fox feeds during a 90 day period while Congress and the Federal Communications Commission work on new rules governing distant network signals. 

Rep. Billy Tauzin, a Louisiana Republican and the subcommittee's chair, introduced the bill last week, days before the court-ordered Feb. 28 shutoff of distant network feeds. The bill now goes to the Commerce Committee, which could vote on Tauzin's bill next week.

Then the measure will go to the full House for consideration.  House Courts and Intellectual Property Subcommittee chairman Rep. Howard Coble scheduled a March 11 vote in his bill, which addresses copyright royalty fees and extends the compulsory license for DTH. Senate Commerce Committee Chairman John McCain set a panel vote on his bill, which allows for local-into-local satellite transmissions but phases in must-carry mandates, for March 9.

Satellite Bills See More Delays 3/4/99

Congressional action on satellite legislation may not occur until early next week.  On Wednesday, Senate Commerce Committee Chairman John McCain said a panel vote on his bill, which allows for local-into-local satellite transmissions but phases in must-carry mandates, will take place March 9.

A House bill, sponsored by Telecommunications Subcommittee Chair Billy Tauzin, also may not see a vote until next week. On Tuesday, Ken Johnson, a spokesman with Tauzin's office, said efforts will be made to get the committee to consider the measure before Friday. If the vote doesn't happen this week, Johnson said the committee will move on the measure early next week.

House Courts and Intellectual Property Subcommittee chairman Rep. Howard Coble scheduled a March 11 vote in his bill, which addresses copyright royalty fees and extends the compulsory license for DTH.

Network Shut Down Seeks Solution

As an estimated 700,000 satellite customers - and possibly as many as 1 million - lost Fox and CBS signals Sunday, there were more calls for a Congressional fix on the delivery of distant network feeds.  At last report, there were no last-minute legal maneuverings over the Miami court's Feb. 28 shut-off date. This week, however, talk could heat up regarding a Congressionally approved moratorium that will allow delivery of distant network feeds. 

"Now, consumers have only one line of defense between themselves and the broadcast monopoly - and that is Congress," said Bob Phillips, CEO of the National Rural Telecommunications Cooperative. "NRTC will mount a consumer campaign in the coming weeks to urge Congress to pass emergency legislation on behalf of these consumers.

As network TV signals go dark in rural homes without cause, viewers must make their voices heard in Washington."

What You Can Do If Your Network TV Stations Get Turned Off?

Dish owners who lose their satellite-delivered network TV stations currently have two options for continued reception of network TV programming:

1: Request waivers from your local TV stations for continued satellite reception of distant network TV signals. To get a waiver, a request must be filed with each local TV station (ABC, CBS, Fox, NBC) in your area. There are several resources to help dish owners get waivers. Dish owners who have access to the Internet can go to www.tvaccessnow.com and click on "Request a waiver", www.sbca.com and click on "Save Our Signals", www.decisionmark.com and click on "SHVA Solution Central" and www.primetime24.com and click on "Satellite TV subscriber alert". Also, check out www.getawaiver.com and www.iwantmyfreetv.com. Or, write to the following addresses for more information: PrimeTime 24, 153 East 53rd St., 59th Floor, New York, NY 10022. SBCA, 225 Reinekers Ln., Suite 600, Alexandria, VA 22314. NRTC, 2201 Cooperative Way, Suite 400, Herndon, VA 20171.

If and when you get that letter fax it in to your programming provider and your programming will be restored. If your are an Orbit Communications C-Band (Large Dish) programming customer  fax it to 978-440-9662.

2: Try using a new, sophisticated off-air antenna to receive local TV stations. Off-air antenna technology has advanced considerably over the last 10 years. Check with our Local TV Channel Section, especially on the new off-air antenna maps from the Consumer Electronics Manufacturer's Association (CEMA). Maps for all 212 TV markets across the country are expected to be available next month-sooner in many areas.

History of the Issue

On March 11, 1997, CBS and Fox brought legal action against PrimeTime 24 in a Federal court in Miami. On June 10, 1998, the court ruled in favor of the broadcasters. The broadcasters claimed that PrimeTime 24 violated Federal law by providing distant network TV stations via satellite to dish owners who live in a local TV station's "grade B" signal contour. Broadcasters maintain that satellite reception of distant network TV stations in areas that supposedly can receive signals from local TV stations erodes a local TV station's viewership and, therefore ratings, which are used to determine advertising fees. The court's ruling requires satellite TV providers to shut off PrimeTime 24's satellite-delivered distant network TV stations, particularly CBS and Fox, that are being transmitted to dish owners who do not qualify (live within their local TV station's grade B signal contour). Many dish owners who are in their local TV station's grade B area cannot receive adequate signals from their local TV stations with an off-air antenna.

The original court decision handed down by Miami Federal court judge Lenore Nesbitt mandated that the satellite delivery of distant network TV signals to ineligible subscribers had to be terminated on or before October 9, 1998. That ruling was delayed until February 28, 1999 in order to give the satellite industry, broadcasters and the government time to find a more reasonable solution. This first court ruling only impacts dish owners who ordered PrimeTime 24 stations between March 11, 1997, the day the broadcasters filed the lawsuit in Miami, and June 10, 1998, the day the court issued its original decision. On December 30, 1998, Federal court Judge Lenore Nesbitt, who is presiding over the case, issued a permanent injunction against PrimeTime 24. The permanent injunction mandates that all ineligible subscribers who ordered PrimeTime 24 before March 11, 1997, must be turned off on or before April 30, 1999.

Instead of using the grade B signal contour as the standard of determining which dish owners do not qualify for satellite-delivered distant network TV stations, the SBCA and the NRTC have recommended using the Terrain Integrated Rough Earth Model (TIREM) which takes into account features of the local terrain. TIREM, which was developed by the National Telecommunication and Information Administration (NTIA), incorporates data from the U.S. Geological Survey. TIREM can provide a more accurate method of determining reception of local TV stations via an off-air antenna. The FCC has recommended a method of determining which dish owners do not qualify for satellite-delivered network TV stations that takes into account terrain.

Miami judge issues temporary restraining order against DIRECTV 2/26/99

Customer cut-offs move forward Despite switching its customers from PrimeTime 24 to a new package of network services, DIRECTV was ordered by the Miami court yesterday to disconnect hundreds of thousands of customers who have been deemed ineligible to receive networks via satellite--whether or not they can receive an acceptable off-air signal. To meet the court's February 28 deadline, DIRECTV is expected to begin disconnecting those customers immediately.

NRTC's CEO Bob Phillips responded by saying: "Regretfully, the broadcasters and their affiliates have branded honest satellite dish owners as lawbreakers for simply wanting access to quality TV pictures. Now, consumers have only one line of defense between themselves and the broadcast monopoly -- and that is Congress."

* Consumers should call or e-mail Congress for emergency action We urge you to call the TV Access Now hotline (800-244-3247) to get connected to your congressional representative and senators in Washington.   You also can e-mail your members of Congress at http://www.tvaccessnow.com/contactcongress2.html.   Implore Congress to take emergency action to prevent massive disconnection of satellite consumers who cannot receive their network programming through any means but satellite.

*C-band customers remain at risk of losing their networks as scheduled. To learn more: http://www.tvaccessnow.com

DIRECTV Criticizes "Anti-Consumer Crusade"

DIRECTV said it will comply with an order issued by a Miami federal court requiring it to cease distribution of CBS and FOX distant network signals to subscribers deemed ineligible for the channels.  While the DBS provider said it was unhappy with the order, "we are even more disappointed that the broadcasters are continuing their unfortunate anti-consumer crusade.

"DIRECTV will begin immediately to disconnect CBS and FOX programming from certain subscribers identified using qualification criteria established by the court," the company said. "DIRECTV is encouraging all affected subscribers to contact their local CBS and FOX affiliates, and request waivers to continue receiving their network programming by satellite."  There will be no impact from this weekend's shut-off of distant network signals on DISH Network. "EchoStar will not turn off any customers on Sunday due to PrimeTime 24," spokesman Marc Lumpkin said. 

Last year, the Miami court told PrimeTime 24 to stop delivering distant CBS and Fox network signals to DTH subscribers. The company, once a a wholesaler to DIRECTV and EchoStar, is ordered to shut off those signals this weekend. In an attempt to avoid that ruling, both EchoStar and DIRECTV abandoned PrimeTime 24 and attempted to set-up their own packages.

Legislation May Delay Signal Cut-Off

 Satellite companies may be getting the legislation they need to keep airing distant broadcast network signals.

In the House, Reps. Billy Tauzin and Thomas Bliley introduced a measure that would impose a 90-day moratorium on a court ruling forcing satellite companies to stop airing CBS and Fox signals. Within  that 90 days, the bill directs the U.S. Federal Communications Commission to come up with a new system for determining which households should be allowed to receive distant network signals.  The Congressional assistance probably won't stop Sunday's signal shut-down, but could make the loss of distant networks a temporary matter.

Additionally, legislation that passed the Senate Judiciary Committee Thursday would give satellite companies the copyright licenses they need to broadcast local channels into local markets, removes the 90-day cable waiting period and cuts the fees satellite companies pay for the right to air network TV channels from 27 cents per subscriber per month to 14.85 cents. 

DIRECTV Offers Mega March Mania for $39

DIRECTV  will offer Mega March Mania, an exclusive programming  package that supplements CBS’s coverage of the first three rounds of the 1999 NCAA Men’s Basketball  Championship, for $39 to residential subscribers.

For the ninth consecutive year, CBS Sports will provide  exclusive live coverage of all 63 games, starting with first-round action on Thursday, March 11 and culminating   with the national championship game on Monday, March 29 from Tropicana Field in St. Petersburg, Fla. 

Tournament games will be broadcast on channels 340 - 343.  Consumers can purchase individual games or the entire package using their DIRECTV remote control. 

New Arabic Channels on Dish Network

DISH Network’s BTV Launches Tahitian Noni Television - Tahitian Noni Television by Morinda, creator of Tahitian Noni juice, was added to DISH Network’s Business Television (BTV) platform at no additional charge to DISH Network   subscribers.

12 Days Until Network Signal Shut-Off  2/17/99

Twelve days remain until distant network signals delivered via satellite are cut off to nearly 1 million subscribers.

Last minute efforts to postpone the order were taken by Primetime 24, the distant network provider caught in the middle of the legal wrangling. In a filing last week with the U.S. District Court in Miami, the company asked the Feb. 28 shut-off be pushed back to April 30, the date an additional 1.2 million subscribers will lose service.

PrimeTime 24 also asked the court to incorporate into its order a Federal Communications Commission order endorsing revised methodologies determining eligibility for distant network signal reception.

The company said the Individual Location Longley-Rice model pushed by the FCC is an improvement on today's predictive model.

FREE Dish Network System with Installation Kit

Orbit Communications Offers Bounty For PrimeStar Subs PrimeStar customers will get FREE System and installation kit to existing for switching from PrimeStar to Dish Network.

The bounty program runs from Feb. 1 to March 31 and is valid for all PrimeStar customers who have subscribed to the service since Oct. 1, 1998.

If the PrimeStar owner converts, they will receive a free dish and system and free installation kit. PrimStar customers can call Orbit at 1-800-576-7248 to obtain their free satellite system. 

Unlike similar bounty programs, this newest plan will be advertised in trade magazines.

Lawmakers Prep Satellite Bills

With completion of the impeachment process, Congress is beginning to focus on a backlog of other matters, including satellite legislation. 

And the moves made by lawmakers so far are encouraging for DTH. Outside a Republican meeting on tax cuts, Senate Majority Leader Trent Lott said Congress would not allow home satellite subscribers to lose network signals.

Sen. John McCain, an Arizona Republican and chairman of the Senate Commerce Committee, hopes to hold a hearing Feb. 23 on a bill that would phase in must-carry mandates on delivery of local-into-local services. Under the bill, a DBS provider wouldn't be forced to carry all stations in a given market until Jan. 1, 2002.

It's expected McCain's bill would eventually be combined with legislation from Sen. Orrin Hatch (R-Utah). Hatch's bill would change satellite copyright law authorizing local signal delivery. 

On Feb. 24, a hearing on the Satellite Home Viewer Act and issues relating to the industry will be held in the House Telecommunications Subcommittee.

Dish Network Adds To Lineup, Launches Education Fare 2/3/99

EchoStar added an additional channel to its DISH Network lineup and also launched DISH Network Education and its first channel, The Schoolhouse Network.  For DISH Network’s America’s Top 100 CD programming package, the company added PAX TV at no additional cost to subscribers. PAX TV broadcasts family-oriented programming. Along with original programming, PAX TV viewers can also watch programs such as "Touched by an Angel" and "Dr. Quinn - Medicine Woman."  The company also launched DISH Network Education. This service will offer a host of educational services via satellite. Currently, it is designed to help teachers and home-schooling parents augment their curriculums with a variety of distance-learning programs.  Its first channel, The Schoolhouse Network, will initially provide programming for the K-12 grade levels. DISH Network Education will be available from the same 18-inch dish used by DISH Network, however, a separate subscription must be purchased. 

Satellite Legislation Called Encouraging

Satellite interests praised two pieces of legislation - one from Sen. Orrin Hatch and the other from Sens. John McCain and Conrad Burns - that would extend satellite's compulsory license, try to solve local-into-local issues and address other industry matters. 

One bill was the subject of a Senate hearing Thursday. The Hatch legislation before the Senate Judiciary Committee would extend the satellite industry’s compulsory license for five years, and reduce copyright fees from the current rate of 27 cents per subscriber per month to 18.9 cents for superstations and 14.85 cents for network signals.

It also would eliminate any further Copyright Arbitration Rate Panel rate-making during a five-year period and eliminate the 90-day waiting period for current cable subscribers to receive distant network signals.

Several organizations, including the Satellite Broadcasting and Communications Association and the National Rural Telecommunications Cooperative, have voiced support for the Hatch bill.  Mike Peterson, an NRTC member, represented the association and its national membership at the hearing Thursday before the Senate Judiciary Committee. Peterson said, "by necessity, our members often rely on satellite technology to be connected to the modern world. Under current copyright and communications laws, rural consumers using satellite technology are not provided with fair access to programming. We do not have a fair alternative to cable."

Peter Martin, executive vice president and general manager of Mt. Mansfield Television, satellite dealer Charles Meinkey, and Bruce Reese, president and CEO of Bonneville International Corp. also testified before the committee.

SBCA President Chuck Hewitt praised satellite legislation introduced by McCain and Burns. "We are encouraged that Sens. McCain and Burns are seeking to make the satellite industry more competitive and to protect some of the consumers who may unfairly lose the distant network signals they are currently receiving via satellite," Hewitt said.  The McCain-Burns legislation would allow satellite television subscribers to receive distant network signals by satellite in three situations: Where they is no local network affiliate; when subscribers cannot receive the broadcasts of the local affiliates over-the-air; and where receipt of distant network signals would not "materially harm" local television services.

Dish Network To Fights Program Access Denial

  EchoStar said it was disappointed by an FCC Cable Services Bureau decision to deny a program access complaint it filed against Comcast.  

The company said it still believes Comcast’s conduct is an unfair practice within program access laws, and will appeal the decision.  

"EchoStar is troubled by this decision as it means that Philadelphia consumers will continue to be unable to receive their sports programming from EchoStar or any other satellite company," the company said in a statement. "Comcast has admitted that its decision to withhold that programming from EchoStar was a purposeful one related directly to competition.

"In light of that admission and other publicly available evidence, EchoStar believes that Comcast’s conduct qualifies as an unfair practice within the program access laws. Therefore, EchoStar will appeal the Cable Services Bureau’s order."

The DIRECTV/PrimeStar Deal

A Vulture’s Eye View Now that the dust has begun to settle on the admiration/envy raised over DIRECTV’s deal to buy PrimeStar, the vultures have started to circle, seeking out weak spots. Here’s a quick rundown of current tree-top chatter: 

No. 1) DIRECTV won’t be able to convert as many PrimeStar subscribers as it hopes because Charlie Ergen will come in fast seeking to pick off the cream of the crop.   Well, gosh. After starting nearly two years later than DIRECTV, with a mere sliver of the cash, Charlie Ergen did not build his dish network into a major contender because he’s a laid back kind of guy. Of course he’s going to target those PrimeStar subs. We expect to see him come in hard and fast, with at least a few sales’ zingers designed to stampede DIRECTV into a mistake.

No. 2) The part of the deal which calls for DIRECTV to take over PrimeStar’s medium power business could become unwound, if PrimeStar debtors object.  True enough. Tucked away in the TCI Satellite Entertainment press release on the proposed transactions is a sentence which reads: "TSAT will receive approximately $67.5 million in consideration... as part of Hughes’ purchase of PrimeStar’s medium power business." The release also notes that the transactions are "subject to the consent of certain PrimeStar lenders." Ergo, if the creditors decide that more is   to be gained from running the mid-power business, the deal could collapse. Will they? Personally, we doubt it.

No.3) A good sized chunk of DIRECTV’s gains will go to NRTC distributorship holders, gratis.  Now here (as usual) is a real wild card. According to DIRECTV President Eddy Hartenstein, about 21 percent of the current PrimeStar subs reside in NRTC territories ... and as far as we can tell, these subs would, indeed, accrue without cost to the local NRTC distributor. However, Hartenstein has also said that he expects the NRTC folk to ante up for their PrimeStar cut, and he notes that the DIRECTV/NRTC deal calls for transmissions from only 27 frequencies, not the 46 which the DBS leader will hold after its various deals close. So... Will the NRTC guys pay up? Will DIRECTV withhold programming from the additional frequencies if they don’t? 

Stay tuned.   

Now The Transition Begins

Now that DIRECTV finally locked up its deal to buy PrimeStar subscribers and assets, the company will begin the transition of medium-power subscribers to its high-power service.  With PrimeStar out of the mix, EchoStar and DIRECTV remain as the dominant DBS forces. During a conference call last week, Hughes Chairman Michael T. Smith summed up his feelings over of the new home satellite marketplace, saying, "I think two strong, healthy competitors will help deliver an alternative to cable.  "Competing with cable - that always has been our vision."

As for 2.3 million PrimeStar customers, the next two years will bring a new dish and a new DBS sales proposition.  PrimeStar operates a 160-channel medium-power service using leased satellite capacity at 85 degrees. DIRECTV will operate the medium-power business for a period of approximately two years, during which time it will transition PrimeStar subscribers to the high-power service.

PrimeStar's customers will get the option of leasing equipment or buying a new system.   DIRECTV and its CE manufacturing partners will introduce new equipment later this year that will seamlessly integrate programming distributed from multiple satellites. The systems will integrate DIRECTV's core subscription services at 101 degrees with new services at 119 degrees. A single dish, dual-satellite receiving system that will integrate DIRECTV's core programming with Spanish-language services that will launch later this year at 110 degrees will also be introduced.

And a consumer-friendly single-dish receiving system that integrates programming distributed from all three orbital locations - 119, 101 and 110 degrees - is also planned by the company.

FCC Denies DISH Program Access Complaint 1/27/99

The Cable Services Bureau at the Federal Communications Commission dismissed a program access complaint filed by EchoStar claiming that Comcast violated the agency's program access rules by denying access to Comcast SportsNet, a terrestrially-delivered programming service. 

A similar complaint filed by DIRECTV against Comcast over the same program access claim was dismissed by commission officials last year.

Comcast SportsNet is delivered terrestrially, and avoids any satellite uplink, thus preventing DBS carriage. The SportsNet regional sports channel carries Philadelphia Flyers hockey, 76'ers basketball and Phillies baseball games.

Hughes Electronics Gets PrimeStar in Fire Sale 2/22/99

The deal is finally done. As originally reported by skyreport on January 5, DIRECTV parent Hughes Electronics has announced its planned purchase of all PrimeStar assets. In a complicated, two-part deal valued at approximately $1.82 billion, Hughes will acquire the PrimeStar 2.3 million subscriber base mid-powered DBS business plus the related Tempo high-power satellite assets.

Payment for the Tempo assets, which include 11 frequencies at 119 degrees, an in-orbit (though slightly damaged) Tempo satellite plus a second, already built Tempo satellite, will total approximately $500 million in cash. For its mid-power business, PrimeStar will receive about $1.32 billion in cash and stock. This effectively values existing PrimeStar subscribers at slightly less than $575 each, a fire-sale price reflecting the extensive damage inflicted on the service by both the Department of Justice and its own cable-company partners.

For DIRECTV, the deal represents a major financial coup which will immediately catapult the DBS-leader into third place among all U.S. multichannel providers, with only cable giants TCI and Time Warner outranking it.

According to DIRECTV CEO Eddy Hartenstein, the deal could close "in a matter of months." The transactions have already been approved by the Boards of Directors of Hughes and PrimeStar, but remain subject to approval by the Board of Directors of General Motors, the consent of certain PrimeStar lenders and receipt of appropriate regulatory and antitrust approvals. Following the DIRECTV takeover, no new PrimeStar subscribers will be added to the system as the DBS leader begins an expected 24 to 36 month transition period, during which existing PrimeStar customers will be moved to the DIRECTV system.

DISH Tops 2 Million Subscribers

EchoStar's DISH Network topped the 2 million subscriber mark, a milestone achieved in less than three years and only one year after the company reached the 1 million subscriber mark.

EchoStar added about 900,000 net subscribers in 1998, a 30 percent increase over the previous year. This expansion earned EchoStar over 37 percent of the DBS industry growth during 1998.  The company activated its first DISH network customer in March 1996, and added more subscribers in its first year than any of its direct-to-home satellite competitors added in their start-up year.

DOJ Blesses EchoStar/ASkyB Deal In Filing

The Justice Department gave its blessing to EchoStar's proposed acquisition of the 110-degree high-power DBS slot from American Sky Broadcasting partners News Corp. and MCI WorldCom. In a filing with the Federal Communications Commission, the Justice Department recommended approval of the deal, which in addition to satellite slots includes the acquisition of two satellites and other assets. 

"The transaction will greatly increase EchoStar's capacity to transmit video programming and will enhance its ability to compete aggressively and effectively against other distributors of multichannel programming, including the cable companies that dominate these distribution markets," the Justice Department said in its FCC filing.

The Justice Department and Federal Trade Commission gave early termination of its review of the EchoStar/ASkyB deal in December. The FCC filing is considered by some a final step in DOJ's process.

Now, EchoStar awaits approval from the FCC. If granted, EchoStar will dominate two high-power full-CONUS slots, with 21 frequencies at 119 degrees and 29 at the 110-degree location.

In May, the Justice Department filed an antitrust lawsuit against PrimeStar in an effort to stop the company's acquisition of the same assets. News Corp. and MCI/WorldCom abandoned PrimeStar in October, and inked the ASkyB deal with EchoStar in November.

Small Cable Ops Fight DISH/110-Degree Acquisition

 In a filing with the Federal Communications Commission, small cable operators announced their opposition to EchoStar's acquisition of the ASkyB satellite slot and other assets from News Corp. and MCI/WorldCom. 

The Small Cable Business Association said it fears EchoStar would use the spectrum at 110 degrees to deliver national networks in select markets, while ignoring much smaller local stations. The association further alleged the company would import network signals from the closest city in an effort to create a regional network service for subscribers.

"This would threaten the financial viability of all television-broadcast stations located outside of the top 100 markets," the association said in its filing. "The harm to local broadcasters translates directly into harm for small cable."

DISH Gets WebTV 1/7/99

EchoStar gained Microsoft's WebTV as another interactive partner, and will put the TV/Internet service into its Model 7100 receivers.

The WebTV/EchoStar combo will combine satellite reception, Internet browsing and eventually VCR-like recording functions in one device.  The new product will be introduced at this week's CES gathering in Las Vegas.

Also coming out of the show is a PCI card for computers that is able to receive EchoStar's DISH Network satellite offerings. The PCI card technology, called DISHLink, will be demonstrated in a personal computer at CES.

The computer will integrate DISH Network satellite television with a computer that has a large hard drive for storage, a surround-sound stereo with high-fidelity speakers, DVD player, large VGA monitor for viewing, Internet capabilities, a universal remote, fax capabilities and more.

DBS Must Carry Bill Surfaces

Rep. Richard Burr (R-N.C.) introduced a bill that would impose full must-carry obligations on DBS providers that carry local TV signals.

Burr is a member of the House Commerce Committee. The committee, headed by Rep. Thomas Bliley (R-Va.), is putting passage of DBS legislation as a top priority this year.   Little was known about the bill at press time. According to reports, it would mirror similar efforts last year from Rep. Howard Coble to mandate that DBS providers carrying local signals provide coverage for every channel in the markets they serve.

Dish Network Adds New Channels

EchoStar will add children's educational network Noggin to DISH Network's America's Top 100 CD channel lineup.
Noggin, a joint venture between Nickelodeon and Children's Television Workshop, will get carriage beginning Tues., Feb. 2.

New Line Cinema Scores HDTV-PPV Deal With DIRECTV

New Line Cinema scored a deal with DIRECTV to offer HDTV programming of its theatrical titles for pay-per-view, a deal touted by the DBS provider and the movie maker as the first of its kind between a major studio and a pay-per-view provider.

HDTV-PPV movies will begin appearing in May. Included in the release list are New Line's "Pleasantville," "Living Out Loud" and "American History X."  DIRECTV is reportedly in the process of hammering out HDTV-PPV agreements with other studios. 

The home satellite provider has put strong emphasis on HDTV for 1999. Included in the new format mix is HDTV coverage of NFL games.

Satellite Hits Home Runs at CES

Some of the hottest of the hot products at the Consumer Electronics Show in Las Vegas are coming from the satellite sector as interactive offerings, replay capabilities and soaring subscriber numbers all made news Thursday.

On the interactive side, DIRECTV followed hot on the heels of EchoStar's WebTV announcement with news that they will offer "TV-centric" interactive services via Wink by sometime mid-year. DIRECTV President Eddy Hartenstein also announced plans to offer replay services via the TiVo system late this year.

DIRECTV and U.S. Satellite Broadcasting also teamed to offer $200 worth of programming savings for new subscribers. The offer is available to new subs who purchase a DIRECTV/USSB system between Jan. 14 and Feb. 21, and activate a Total Choice Platinum and USSB Entertainment Unlimited package by March 5.

Meanwhile, the EchoStar booth was packed as retailers clustered around the DISH Network's new 7100 receiver, a here-and-now box offering simultaneous web and TV watching, WebTV e-mail connections and replay capacities. Considering the price point of $499 plus professional installation fees, most observers predicted soaring 7100 sales in the months ahead.

The Missing Player...

On the sad side of the CES show, a gaping hole near the center of the satellite section marked the spot where PrimeStar would have been.   Said one observer, "I guess that about says it all."

We hope not; but for the moment, it does appear that bad blood among the cable partners and backstabbing from the Justice Department may have mortally wounded the mid-power service.

CES: A DTH Product Announcement Breeding Ground

A host of new home satellite TV products are being introduced at the Consumer Electronics Show this week. Here are few of them:

Thomson Multimedia will offer RCA digital set-top converters, multimedia monitors, direct-view HDTV sets, projection HDTV sets, and a plasma HDTV model. The company, who has strategic partnerships with NEC, Alcatel, DIRECTV and Microsoft to bring more innovative products to the market, also announced the creation of a new patents and licensing organization that will manage the company’s extensive patent portfolio.

Magellan introduced the new 750NVA vehicle navigation system. It’s the first intelligent vehicle navigation system of its kind and has an optional docking station which allows the user to move the system form vehicle to vehicle.

Computer maker Gateway forged a relationship with EchoStar to develop a satellite receiver for Gateway’s Destination XTV, a product that melds television and computer capabilities. Specifically, the integrated digital satellite receiver called DISHlink, will connect Destination XTV to DISH Network TV programming.

EchoStar also announced that it is extending its DISH Network rebate offer to two next generation satellite receivers, models 3720 and 4720, which offer more advanced features such as multi-room capabilities and Dolby Digital sound. Model 3720 sells for $199 and model 4720 sells for $299. The rebate is good from Jan. 10 to March 31, 1999 and requires customers to subscribe to DISH Network’s One-Rate Plan of $48.98 per month for a year.

If that wasn't enough DISH news, EchoStar unveiled new programming, including interactive programming from Bloomberg Financial Markets, The Weather Channel, MediaX, Pseudo Programs, Tech Talk, EMNetwork, Salon Magazine and E! Online. The channels will debut sometime in the summer with more to come in the future. DISH Network also announced it will carry Fox News Channel.

Personal Satellite Network Launches Satellite E-Commerce

MediaX Joins EchoStar - MediaX, an emerging new media development and publishing company, announced its addition to EchoStar’s interactive lineup.

MediaX provides entertainment content and software, website design, hosting and marketing, and is a major e-commerce provider. 

MediaX will deliver programming and online purchasing for a broad spectrum of entertainment interests. Using EchoStar’s satellites, MediaX will incorporate the features of its Internet site with richer interactive multimedia, online purchasing and live events, accessible by a click of a mouse or a remote control.  EchoStar’s new interactive platform is set to debut this summer.

Satellite Tops E/Town’s Golden Plug Awards

In the spirit of The Consumer Electronics Show this week in Las Vegas, E/Town, a consumer electronics website, has announced the winners of its Golden Plug Awards.

Winners of the award are chosen by the editors and readers of E/Town and represent the 35 best products of the year in Home Theater, Home Audio, Home Office, Camcording, and On the Go. The products are judged on value, technological advancement or superiority, and functionality.

New satellite-based products came out on top in three categories. The overall Best Product of the Year was the Iridium Satellite Phone. For Home Theater, the RCA DS5451RB DIRECTV Satellite System topped the list. Magellan GSC 100 messaging device came out as the best pager.  For more information about the Golden Plug Awards go to http://www.virtualces.com.

DIRECTV/PrimeStar Combo Continues Its Circles

Rumors continue to circulate that DIRECTV will buy PrimeStar assets, a move that would give the Hughes-backed unit an additional 2.3 million subscribers and solidify its position as the biggest DTH provider with about 6.6 million - or 80 percent - of the satellite marketplace.

As reported Tuesday in SkyREPORT, the deal would provide DIRECTV with PrimeStar’s Tempo satellite license at 119 degrees. While the move could give DIRECTV an additional full-CONUS high-power slot, making it more competitive with EchoStar and its two slots, the positioning of the Tempo satellite slot may not be attractive to DIRECTV’s existing business at 101 degrees.

Also at question is price. PrimeStar would likely be valued at around $2 billion in an acquisition, with the value of subscribers put at more than $1,000 each when debt and other factors are considered. But the DIRECTV/PrimeStar combo would continue the consolidation trend in the business.  The acquisition rumor was credited - along with news that Hughes may boost DIRECTV's rural business and buy a bigger stake in ICO Communications - with a jump in GMH shares in the last two days.

PrimeTime 24 Order May Impact "Hundreds Of Thousands" 1/5/99

Chuck Hewitt, president of the Satellite Broadcasting and Communications Association, said the recent permanent injunction from a Miami federal court judge over the PrimeTime 24 and CBS/FOX will impact "hundreds of thousands" of DTH customers eligible for distant network signals.  But the April 30 cut-off date in the permanent injunction, which requires the shut-off of distant signal service to ineligible subscribers who signed up for the service before March 11, 1997, could give Judge Lenore Nesbitt time to consider options.

"We are encouraged that the cut-off date has been set after Feb. 1, when the Federal Communications Commission is expected to issue its rulemaking on thenetwork signal issue," Hewitt said, "and that the judge specifically indicated she 'reserves the right to issue a supplemental order after the FCC has resolved the rulemaking issues pending before it relative to this lawsuit.'

"This decision by the Miami court only increases the importance of the FCC's action on this issue," Hewitt said. "It is now critical that they act to protect satellite consumers nationwide. But we remain extremely concerned, as the National Association of Broadcasters continues its efforts to challenge the FCC's authority over network signal delivery." p>Nesbitt issued a permanent injunction against PrimeTime 24 preventing it from delivering distant CBS and FOX feeds to home satellite subscribers beginning April 30. CBS and FOX charged that distant network signals are delivered to ineligible subscribers.

The permanent injunction would affect satellite customers who signed up to receive CBS and FOX signals before March 11, 1997. Previously, Nesbitt issued a preliminary injunction to disconnect satellite customers nationwide from CBS and Fox signals by Feb. 28. That order covered customers who signed up for the service between March 11, 1997, and July 10, 1998.   

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