SkyREPORT.COM News Headlines
News Update For 1/6/00
Motorola Completes GI Deal
Motorola and General Instrument have completed their merger, following GI shareholder approval of the $17 billion deal during a special meeting Wednesday. Under the merger deal, each share of General Instrument was converted into 0.575 of a share of Motorola common stock. The merger of the two companies produced a new unit, Motorola Broadband Communications. Headed by Edward Breen, former chairman and chief executive of General Instrument, the Broadband Communications sector will focus on integrated and interactive broadband access products for the home. It will become one of the world's leading suppliers of digital and analog set-top terminals, thanks to GI's work with cable and satellite companies in the past. Among the new unit's products will be systems for wired and wireless cable TV networks, cable modems and modem network routers and HFC network transmission systems used by cable operators. In addition, the unit will have GI's DTH business.
DISH Readies Receivers-Reports Subs
In addition to showing off its new DISHPlayer 500 system during the start of CES festivities today, EchoStar will introduce a new HDTV system and an MDU solution that will put DISH Network into apartments and condos. EchoStar also is expected to announce new premium programming channels and this year's marketing/advertising plans to promote its DBS service and "help consumers get rid of cable forever." Details will be available at EchoStar's press conference today, which will be held in the Las Vegas Convention Center at 11 a.m. in room N249. EchoStar announced Wednesday that it added about 1.47 million net new customers during 1999, an increase of 63 percent over 1998's numbers. The additions bring DISH Network's total customer base to approximately 3.41 million. During December, DISH Network added approximately 160,000 net new customers, the largest single monthly gain in its history. CES kicks off this morning and runs through the weekend. For satellite interests, a panel of top executives will take place from 12:30 to 1:30 p.m. in the Las Vegas Convention Center, room LVCC N252.
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.
Competition Woes Strangle Cable Stocks
One of Wall Street's top cable analysts said the nation's top MSO's may face stiff competition in selling Internet, phone and digital video services due to robust DBS offerings and stronger services from phone companies. Morgan Stanley Dean Witter analyst Richard Bilotti said cable operators may not be able to raise prices for non-cable services by more than about 3 percent a year because of that stronger competition. In addition to video, cable is eyeing delivery of phone service and Internet traffic. Tougher competition for cable "will probably force the entire cable television industry to bundle these incremental services with the standard digital packages at modest, incremental prices," Bilotti said. The New York-based analyst made the statements in a report released this week. The report sent cable stocks down Wednesday. Cox fell more than $5 to $43.44, while Cablevision shares dropped more than $4 to $70.75. AT&T fell slightly to $50.94 while Comcast declined more than $1 to $42.12. Bilotti downgraded Cox to "neutral" from "strong buy." He also cut Cablevision to "neutral" from "outperform." He maintained his "outperform" rating on Comcast. As for satellite stocks, British Sky Broadcasting's ADR's on the New York Stock Exchange fell to $93.50. Hughes fell more than $2 to $95.31, while EchoStar closed down at $91.38. Pegasus closed down $4 to $83.94.
Geocast Gets Ramo
Geocast Network Systems hired James Ramo, a former DirecTV executive and once president of TVN Entertainment, as its chief executive officer. H. Joseph Horowitz will continue as chairman and will drive the strategic direction of the company. He also will manage key partnership activities. Geocast's service and network aims to deliver customized information and entertainment programming initially to the PC desktop via digital TV signals. The service will give consumers personalized content with broadcast-quality full-motion video, CD-quality audio and instant software downloads.
INTL: Sky Sees Setback In Argentina
- Sky Sees Setback In Argentina - Sky Latin America, the South American satellite broadcaster backed by News Corp. and others, had its Argentine license suspended by a judge this week. That sets back Sky Argentina's planned debut in March. The license for the company, a joint venture between Sky Latin America and a unit of Telecom Argentina, was suspended so the court can rule on a stipulation that foreign companies can only hold up to 25 percent of a communications company. The judge took action after a consumers group filed a complaint.
- Lagardere Eyes CanalSatellite Stake - France's Lagardere confirmed that it has reached an agreement with Canal Plus on obtaining a stake in the CanalSatellite platform, details of which could be announced in the coming days. During the summer, Lagardere it wanted to form an alliance with a French digital satellite service. Several reports said Lagardere was ready to pay 3.5 billion francs for CanalSatellite and 1.7 billion francs for Multithematiques, purchases that would give the company about a third of each entity.
- SkyPerfecTV Sets Sub Record - Japan's SkyPerfecTV said Wednesday that its subscriber base rose by 105,804 in December, taking the company's total to 1.597 million. That marked the largest single-month increase in subscriber numbers. Itochu, Sony, Fuji Television Network, News Corp. and Softbank each own a stake in the digital broadcaster.
- Discovery Aids International Documentaries - The American Film Institute and Discovery Communications have created an alliance to present The AFI/Discovery Global Documentary Festival. The goal of the festival, which will debut next year, is to recognize and celebrate the highest standards of documentary filmmaking around the world.
- Lockheed Receives Indian Contract - Lockheed Martin Global Telecommunications and Shyam Aces of Indies recently forged an agreement to build a gateway in India that will deliver Asia Cellular Satellite services to consumers there. The contract is reportedly valued at more than $17 million.
- Company Develops TV Translation Service - Massachusetts-based MultiLingual Media, a provider of instant translation services for the cable and satellite television industries, has developed a service called GlobalTV. The service enables television viewers around the world to enjoy time-sensitive TV content in their native languages, regardless of the country in which a program was produced.