SkyREPORT.COM News Headlines
News Update For 12/1/99
PanAmSat Ready For Galaxy Launch
PanAmSat's Galaxy XI satellite is now in Kourou, French
Guiana, being prepared for its late December launch aboard an Ariane
rocket. Galaxy XI, the 10th satellite in PanAmSat's U.S. fleet and its
20th worldwide, represents the first part of the company's comprehensive
expansion and backup effort. Between now and mid-2001, the satellite
service provider plans to place seven additional satellites into orbit.
The Galaxy launch also will support the company's North American cable
neighborhood. Galaxy XI is the first of three satellites PanAmSat will
launch during the next six months to support that cable business. That
plan also consists of the launch of the Galaxy XR and IVR satellites,
as well as the transition of Galaxy VI, VII and IX to new orbital locations.
Liberty Exits Ascent Deal
Liberty Media Group is abandoning its acquisition of businesses operated by Denver-based Ascent Entertainment, the media and entertainment company. The stock-swap deal, prior to Liberty's exit, was valued at about $513.6 million. Liberty was eyeing pay-per-view and information services provided through Ascent's On Command unit. On Command's products are big among hotel chains. In addition, Ascent provides satellite services for the NBC television network, helping to distribute its national television feed to local affiliates. Ascent was spun off by Comsat, the satellite services company being acquired by Lockheed Martin, in 1997. - - - GlobalStar To Sell Preferred Stock - - - Globalstar Telecommunications announced plans to sell $150 million in convertible preferred stock in an offering exempt from registration. Globalstar said it will use the proceeds to buy convertible preferred partnership Interests in the larger Globalstar LP, which in turn will use those proceeds to continue deployment of its mobile satellite-based telephone system. Globalstar launched limited service in October, and is continuing to roll out its offering worldwide.
Cable Offers Cash For Dishes
One cable company, reportedly concerned about the impact satellite-delivered local TV packages will have on its business, is raising the stakes in its quest to enroll new customers. Time Warner Cable is offering $100 to home satellite subscribers who turn in their satellite dish and sign up for digital cable service. Customers who switch also will get their first month of service free. So far, sales representatives for Time Warner's Raleigh-Fayetteville division have gathered 1,100 dishes.
COMP WATCH:
- Court Tackles Scrambling Law - Playboy was given its day in court Tuesday, addressing its concerns with a law that mandates scrambling of cable TV feeds containing sexual material. The law, known as section 505 in the 1996 Telecommunications Act, requires cable companies to scramble audio and video signals containing sexually explicit channels. If they can't scramble, they must air the programming only between 10 p.m. and 6 a.m. A lower court struck down the law as unconstitutional. Present during arguments were attorneys for Playboy and the Justice Department.
- Company Plans IPO - The Mexican cable television operator Cablevision, a subsidiary of Grupo Televisa, is planning an initial public offering there by the end of the first quarter of 2000, according to the Reforma newspaper. The offering will reportedly be between 24 and 25 percent of Cablevision's capital.
- DMX Changes Line-Up, Name - Digital music provider DMX has updated its programming line-up with new audio channels that include 70's and 80's "Retro Dance," special holiday selections, and "Rock n' Country," a mix of both those genres. The company also has undergone a change in corporate identity and will now be known as DMX Music.
- Time Warner Sponsors Holiday Benefit - Time Warner is sponsoring a holiday concert called "Christmas In Washington" to benefit the Children's National Medical Center. Artists participating in the event, which will be broadcast on TNT on Dec. 12, include B.B. King, Jewel, Christina Aguilera and 98 Degrees.
- Microsoft Eyes Japanese Operator - Microsoft is reportedly in talks to buy Titus Communications Corp., Japan's second-largest cable television operator, in a move that some analysts say could eventually pose a threat to telephone giant NTT. Microsoft has been accelerating its investment in cable television both inside and outside the U.S. as a way of delivering Internet access to individual homes.
- Networks Pick-Up Arena Football - The Arena Football League has reached a three-year agreement worth $25 million with CBS Cable's Nashville Network, ESPN, ESPN2, and ABC Sports. Live arena football games will begin airing in April 2000.