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.

Coble: License A Must For Cable Competition

On Thursday, the Courts and Intellectual Property Subcommittee, led by Chairman Howard Coble (R-N.C.), held a hearing on legislation addressing copyright royalty fees and extending the compulsory license for DTH.

Coble told attendess that with a new compulsory license, "comes a host of contentious issues and legislative provisions." But renewal of the license and the Satellite Home Viewer Act is needed to ensure competition for cable, he said.

"Almost all of us agree that it is important to look at this statute with a goal towards making the satellite industry more competitive with cable television," Coble said in opening remarks. "With competition comes better services at lower prices, which makes our constituents the real winners."

Coble's bill would reauthorize satellite's compulsory license, allow new customers who saw networks via cable for 90 days prior to their dish purchase get distant network signals immediately, and allows DTH providers to retransmit local stations. It also will discount copyright fees and continue the rebroadcast of a national PBS feed.

David Moskowitz, senior vice president and general counsel at EchoStar, said the provisions would help the company compete with the wire.

"In trying to compete against cable television, EchoStar soon realized that the most significant handicap hampering satellite services is the lack of local signals," he said. "Most of the consumers walking out of the store without a satellite dish cite the unavailability of local signals, which they can receive with cable, as the reason."

Michael Mountford, executive vice president of DSI Systems, said extension of the copyright license will benefit rural consumers. "I don't have to tell you how important it is to them that they have access to network programming because so many of them can't get local television signals with a regular antenna," he said.

TCI's HITS Service Tags ESPN For Packages

Tele-Communications Inc.'s HITS (Headend In The Sky) service will create a multi-channel sports pay-per-view service for cable operators with ESPN.

Starting in fall 1999, the HITS/ESPN package will carry the 100-game ESPN GamePlan college football pay-per-view package and the 500-game ESPN FULL COURT college basketball package. The 100-game MLS/ESPN SHOOTOUT Major League Soccer package will launch as a late season offering. The packages also are available via satellite.

The new sports service also includes a sports pay-per-view channel offering additional live and taped programming from the sports libraries of ESPN and ABC Sports. A specially created live sports barker channel will promote season packages, game match-ups, schedule information, and other sports programming. The barker will include updates from ESPN.com and the Go Network.

Viacom Net Income Dives, Cash Flow Up

Viacom, which owns the Paramount film and television studios, cable networks such as MTV and Blockbuster Video, saw fourth quarter net income plunge, but saw increased revenues across the board.

The company said its net income fell to $18.5 million, from $573 million in the year-earlier period. The year-ago results were boosted by a pretax gain of about $1.2 billion from the sale of assets including Viacom's 50 percent stake in the USA Network, which was sold to Seagram.

Revenue for the quarter rose 15 percent to $3.34 billion.

Viacom said its EBITDA (earnings before interest, taxes, depreciation and amortization) rose 24 percent to $502 million. The company also said its operating income rose 36 percent to $296 million.

For its divisions, Viacom said revenue at its television networks and broadcasting business - including MTV, VH1, Nickelodeon and Showtime - rose 13 percent to $943 million, while cash flow rose 17 percent to $336 million. Revenues increased for all other divisions as well.

The company announced a 2-for-1 stock split, payable March 31 to shareholders of record on March 15.

PROGRAMMING:

• 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.

• 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.

• HBO Announces HDTV Schedule - HBO will launch its high definition schedule with the primetime premiere of "U.S. Marshals" on March 6 at 8 p.m. Eastern Time. Throughout the month, HBO will also air numerous other movies such as "Sphere," and "Amistad," in high definition. "Titanic," along with other major motion pictures, will debut in high definition in April.

• Cable Operators Nationwide Make Commitments to Encore And Starz! - Encore Media Group (EMG) signed new and extended contracts with 15 major cable operators nationwide. As a result of these extensions, STARZ! and Encore will now have agreements to launch in more than 90 percent of the total cable universe compared with its current reach of 35 million cable subscribers (51 percent).

• TBS to Launch Turner South - Turner Broadcasting System will launch a new, 24-hour broad-based entertainment network targeting the Southeastern region, featuring movies, sitcoms, original programming, sports and regional news.

  Turner South, set to debut in fall 1999, will be available to cable and DBS affiliates in Alabama, Georgia, Mississippi, South Carolina, Tennessee and regions of North Carolina.

• TVN Expands Website for C-Band Owners - TVN Entertainment has redesigned and expanded its website with an improved section for C-Band dish owners. The new website also has a section for C-Band owners who use a 4DTV receiver.