Hughes Electronics got a boost from its DTH businesses in the United States and Latin America during 1999, helping improve year-end revenues for the company. Revenues for 1999 increased 59.8 percent to $5.56 billion, compared with $3.48 billion in 1998. Record subscriber growth for Hughes' DirecTV businesses in the United States and Latin America, as well as additional revenues resulting from the U.S. Satellite Broadcasting and PrimeStar transactions, helped boost those results. Cash flow for the year was $222.7 million, compared to $341.7 million in 1998. The loss for 1999 was $270.3 million, compared to earnings of $271.7 million for 1998. Declines were attributed to a fourth quarter charge related to the discontinuation of wireless businesses at Hughes Network Systems. The DirecTV unit serving the United States went cash-flow positive in the fourth quarter, with EBITDA at $27 million compared to negative EBITDA of $32 million for the previous fourth quarter. The improvement was attributed to contributions from the USSB and PrimeStar transactions, as well as improved margins resulting from a larger high-power subscriber base. Revenues also more than doubled at the satellite broadcaster for the fourth quarter when compared to the same three-month period in 1998. DirecTV President Eddy Hartenstein, recently named the head of Hughes' new consumer services focus, said the company signed up more than 40 percent of existing subs in Denver, Washington, D.C., and San Francisco for local TV service. Those cities were among the first to receive DirecTV's local network broadcast channels. He also said interactive services from America Online could become a reality for consumers during the second quarter.

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DISH Aims For 60% Of Households For Locals

EchoStar's DISH Network added local channel service for Houston and Kansas City, bringing the number of markets it serves to 20. DISH also revealed that it plans to offer local channels via satellite to approximately 60 percent of U.S. households by the end of March. Other cities that are part of the company's local TV package are New York, Los Angeles, Chicago, Philadelphia, San Francisco, Boston, Dallas, Washington, D.C., Detroit, Atlanta, Seattle, Minneapolis, Miami, Phoenix, Denver, Pittsburgh, Nashville and Salt Lake City. The local network channels sell for $4.99 per month. A national PBS channel can be purchased for an additional $1 per month. DISH Network also plans to offer popular independent network channels in some markets. EchoStar also announced that Castle Cable Services, a private cable TV service provider, is installing the first of EchoStar's Quadrature Amplitude Modulation (QAM) systems for multiple dwelling units (MDU) in North America. The installation is taking place at the Avalon Towers in San Francisco, Calif.

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Gemstar Sues TiVo

Gemstar International and its StarSight Telecast subsidiary, a developer and distributor of interactive program guides, filed a patent infringement suit against TiVo in Federal District Court in California. The suit claims that TiVo infringed on Gemstar's intellectual property with an unlicensed interactive program guide contained in personal video recorder devices. "While Gemstar keeps an open licensing policy and is ready to customize licensing terms to accommodate licensee needs, Gemstar is equally ready to vigorously enforce its intellectual property rights," said Stephen A. Weiswasser, general counsel and executive vice president. In the past, Gemstar has sued TV Guide over the interactive program guide technology. The two have settled their differences, and in return Gemstar plans to acquire the TV Guide business. The transaction is expected to close in the second quarter. Gemstar has licensed several companies for use of its guide, including America Online, Hughes Network Systems, JVC, Matsushita, Microsoft, Mitsubishi, Philips, Sony, Thomson and Zenith.

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Time Warner Tops In High-Speed Internet Subs

America Online is getting the top dog of high-speed Internet services through its proposed purchase of Time Warner. According to the Yankee Group, Time Warner is not only the No. 1 cable operator in the country but it also has the most high-speed Internet customers. Time Warner's Internet subscriber base, which gets service through the RoadRunner offering, numbered 241,000 in 1999, the research firm said. MediaOne, an acquisition target for AT&T, was second with 173,000, while Cox Communications was third with 140,000. AT&T came in fourth with 113,000 Internet customers. Some 1.1 million cable customers get high-speed Internet access from their MSO, the study said. Phone companies had about 300,000 subscribers for digital subscriber line, or DSL, service.

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INTL: Big Step for Sat Phone Provider