SkyREPORT.COM News Headlines
News Update For 12/20/99
Cable Eyes NFL Package
AT&T Broadband and Internet Services wants to lead a cable industry effort to gain exclusive rights to out-of-market National Football League games when contract renewal talks begin. According to Variety, the NFL contract in question comes up for renewal in 2002. Speaking with reporters at the Western Cable Show in Los Angeles, AT&T BIS President Dan Somers suggested that cable has a competitive disadvantage to DBS because of the exclusive arrangement the NFL has struck with DirecTV. "We want to be players in both regional and national sports because sports drives lots of incremental revenue," he said. Cable has gained access to pro hockey and pro basketball packages that were once satellite-exclusive. Cable interests also reportedly are in negotiations with Major League Baseball for an out-of-market package. Somers also predicted that unlimited amounts of pay-per-view movies will be available through rebuilt cable systems. He added that DBS may have a tough time competing with revamped cable offerings due to its limited spectrum, a lot of which may be gobbled up by new local channel services.
Good News For Globalstar
Shares of Globalstar Communications jumped more than $3 to $24 Friday after the company revealed that it has shipped 40,000 handsets to distributors, meeting its 1999 goal. Those numbers were presented during a call with the financial community. CEO Bernard Schwartz started the call by saying he was pleased that he had "good news and no bad news." And most of the news was positive. During the call, Globalstar officials said they expect 200,000 units to be shipped by end of first quarter 2000. It also was revealed that distributors are pre-purchasing $25 million in mobile minutes at a 25 percent discount. Analysts said that is good evidence of distributor confidence in the Globalstar system. The only negative coming from Globalstar: Subscribers will need two separate phone numbers, one for satellite and one for cellular service, through the first half of 2000. Apparently, the company's gateways are not yet capable of switching a cellular call to a satellite call if a customer is out of reach.
TSAT-Liberty In Stock Deal
Liberty Media will purchase cumulative preferred stock in TCI Satellite in exchange for Liberty's economic interest in certain shares of Sprint Corporation PSC common stock, an asset valued at approximately $300 million. The rather-complicated stock deal also involves a joint venture, 10 percent of which will initially be owned by TSAT and 90 percent owned by a subsidiary of Liberty Media. The joint venture will hold and manage interests in entities engaged in the distribution of Internet data and other content via satellite. Robert Bennett, president and CEO of Liberty Media, said the venture with TSAT will allow Liberty to consolidate various satellite-related assets into a single company "under a management team with significant experience in the business." "At the same time, the infusion of capital into TSAT will provide them with financial resources to pursue additional opportunities," he said. "We are confident that with this transaction, we will create shareholder value for both Liberty and TSAT." TSAT was established to hold TCI's assets in PrimeStar. The PrimeStar business was sold earlier this year to DirecTV and Hughes.
SkyBOX: A Cable Conundrum
What if they held a cable television show and nothing much happened? That, approximately, is what did (or perhaps we should say, didn't) happen at last week's big Western Cable Show in Los Angeles. Not that the show lacked people. (Something in the neighborhood of 31,000, about a thousand more than last year, attended) Nor were the cable glitterati missing. (A party at Lee Master's house featured more limos than a Mafia funeral as everyone from Leo Hindery to Howard Stern joined in the scene.) But in terms of news...Well, one of the biggies was John Sie announcing a new name for the Encore group. (All the way from Encore Media Group to Starz! Encore Media Group. Interesting, but the earth didn't exactly tremble.) So why the unusual quiet? A lack of hot news, for starters. The big cable swaps have slipped into a temporary lull. On the technology front...let's just say that the wire guys are now faced with the expensive, time-consuming task of implementing all that stuff they've been touting. And hoping it can at least begin to live up to the hype. So what did come out of the show? A friend of ours jokes that the floor had enough vaporware to launch David Copperfield into outer space. But a few non-vaporware items did grab attention. For one, the Wink interactive system continued to move forward with the cable guys, this time announcing that its "Enhanced Broadcasting" product will be a part of Insight Communications' digital cable launches next year. Another big winner was the DIVA video-on-demand technology which drew a long expected, but still significant, $7 million investment from General Instrument. But the biggest new technology of all, at least in terms of crowds and buzz, was found tucked inside the Microsoft booth, surrounded by some glum faces. And this cable show "winner?" EchoStar's DISHPlayer system, happily chugging away with full personal TV, Internet access and, of course, that nationwide digital signal.
Do you have a comment or letter for SkyBOX? Write the editors at: editor@skyreport.com.
PEOPLE: Read Oversees Government Affairs
- Hughes Hires Regulatory, International Exec - Hughes Network Systems appointed Joslyn Read assistant vice president for regulatory and international affairs. Read will direct and manage domestic and international regulatory and licensing matters, specifically the Spaceway program, issues involving the Federal Communications Commission and other U.S. government agencies, the International Telecommunications Union, intergovernmental organizations, and foreign national regulatory agencies. Read has 15 years of business and governmental affairs experience.
- XM Gets Lockheed Veteran - Penelope Longbottom joined the senior staff of XM Satellite Radio as vice president, corporate communications. Longbottom, who was previously with Lockheed Martin Global Telecommunications, will take charge of XM's media, public and investor relations functions.
- International Organization Applauds Behar - Robert Behar, president and CEO of Globecast, recently won the Teleport Executive of the Year Award from the World Teleport Association. Behar reportedly received the award for his initiative and success in making Globecast, a subsidiary of France Telecom, an emerging DBS provider.
- Two Promoted at Discovery - Bill Goodwyn has been promoted to executive vice president, affiliate sales and marketing, Discovery Networks. And Bill McGowan has been promoted to executive vice president, advertising sales.