SkyREPORT.COM News Headlines
News Update For 12/14/99
Analysts Upgrade Pegasus, Anticipate Growth
Recent news from Pegasus Communications, the largest independent distributor of DirecTV in areas operated by the National Rural Telecommunications Cooperative, caused industry watchers to raise the company's stock rating. Bear Stearns analyst Vijay Jayant upgraded its price objective for Pegasus from $72 to $115 by the end of next year. Pegasus announced last week it will acquire six more independent DirecTV providers in the Upper Midwest, Central Plains and Western portion of the country. "Collectively, these pending acquisitions serve approximately 43,500 direct broadcast satellite subscribers and reach nearly 361,600 households, of which more than 84,200 are not currently passed by cable," the company said. The acquisitions will cost Pegasus approximately $100.9 million in cash and stock. Pegasus also announced it racked up 17,647 net new subscribers in November and 24,762 gross subscriber additions, bringing the company's total number of subscribers at the end of last month to 671,131. This news caused analysts to speculate about whether Pegasus may eventually be "rolled up into Hughes (owner of DirecTV)," said Jayant. "We believe closure on the recent speculation of a Hughes spin-off from General Motors (its parent company) and a potential initial public offering of DirecTV only enhances the probability of a Pegasus roll-up." Shares in Pegasus Communications (Nasdaq: PGTV) closed up more than seven percent Monday at $88.
Sky Angel Turns Three, Satisfies FCC
Dominion Sky Angel, the religious-oriented DBS service based in Naples, Florida, recently celebrated its third on-air anniversary. The company launched six television and three radio channels under the name Sky Angel in December 1996. Today it carries 18 television and 16 radio stations. Dominion said its plans or the future include launching at least one more high-power DBS satellite in the year 2002 that will be co-located with EchoStar 3 at 61.5 degrees West Longitude. Dominion also announced that three of its television channels have been designated to meet the Federal Communications Commission's requirement that four percent of the company's capacity be set aside for non-commercial, public interest programming. Two of the channels provide 24-hour home school courses. The third channel, Angel One, "is comprised of more than 130 separate religious, Spanish language, minority oriented educational and other public interest programs," the company said.
Flagship Newspaper Dissects Local Service
An article in the New York Times Monday pointed out the pros and cons of the satellites TV industry's newly-sanctioned local-into-local broadcast service. "The potentially lucrative opportunities of carrying local broadcast signals will come at considerable cost, " wrote reporter Seth Schiesel. "DirecTV and EchoStar have already begun transmitting local signals to big markets, including New York and Los Angeles, and want to expand their offerings to dozens more markets by the end of the year. But as the carriers roll out their local offerings across the nation, the capacity of their existing satellites will be sorely tested." The article discussed the long battle DirecTV and EchoStar waged in Washington in order to win the right to broadcast local signals - and the fact that last month's Satellite Home Viewer Improvement Act still only permits less than half of satellite TV subscribers to receive local signals. "There may not be enough satellite capacity - or economic motive - to rebroadcast hundreds of local television stations and there probably never will be. And in the case of EchoStar, even in areas where the local service will be offered, many of its customers will require new, slightly larger satellite dishes to pick up the rebroadcast local signals," said the article. To read the complete New York Times story, look at the paper's Web site at www.nytimes.com.
New Executives Join T. Howard Foundation
The T. Howard Foundation, an organization dedicated to encouraging full participation for people of color and women in the satellite and telecommunications industries, has announced three new board members for 2000-2002. The new appointees are Yolanda Robins, vice president corporate communications at Pegasus Communications Corp.; Bill Gerski, senior vice president of marketing and sales at Golden Sky Systems; and Sean Bratches, senior vice president affiliate sales and marketing at ESPN. Chuck Hewitt, president of the T. Howard Foundation and the Satellite Broadcasting and Communications Association, said "It was professionalism and dedication that propelled these three leaders into the senior positions they hold within their companies and we have every confidence in their abilities to help the Foundation further its goals of diversity in the satellite workplace."
TECHNOLOGY: TV Drives Web Use
- Advertising Works for the Web - The November 1999 CTAM Pulse surveyed 889 Internet users. Among the findings, CTAM determined that Web promotions during or after a television program are increasingly effective in driving traffic on the Internet. The Pulse also determined that one-third of Internet users have been prompted to visit a Web site that is cross-promoted on TV.
- Sirius Signs Receiver Agreement - The satellite radio broadcaster Sirius Satellite Radio (formerly CD Radio) and Clarion, a leading manufacturer of car radios, have announced an agreement whereby Clarion will design, market and distribute radios capable of receiving Sirius' 100-channels of programming. The subscription radio service is set to debut late next year.
- Discovery Extends HDTV Commitment - Discovery Networks has announced plans to add an additional 110 titles to its library of high definition programming next year. Discovery plans to offer the programming under the umbrella brand Discovery HD Theater.
- XM To Use Lucent Coder - Lucent Digital Radio has licensed its Lucent Perceptual Audio Coder to XM Satellite Radio for use in the company's satellite radio service. XM will use the Lucent product to encode and decode its radio service, which is set to debut in 2001.
- Loral Skynet Teams Up With Eutelsat - Satellite operators Loral Skynet and Eutelsat have signed a far-reaching agreement that clears the way for each to pursue business opportunities in the geostationary arc over the Atlantic Ocean between 12.5 and 15 degrees West Longitude.