SkyREPORT.COM News Headlines
News Update For 3/29/00
Search For DirecTV President Goes On
NEW YORK - The search for a new DirecTV president could take another six to eight weeks, according to Eddy Hartenstein, the current man in charge at the DBS giant. Hartenstein delivered that news during a satellite uplink with the audience at Tuesday's SkyFORUM symposium. "We're looking high and low, far and wide," he said. Hartenstein has overseen DirecTV since its inception. Earlier in the year, he was elevated to the position of corporate senior executive vice president in charge of all consumer services for Hughes Electronics, DirecTV's parent. In his talk, Hartenstein boasted about DirecTV's take rate for local channel packages, which he said is around 50 percent for current subscribers. The take rate for new subscribers is much higher, he said. With the local channel packages, DirecTV subscribers don't have to rely on off-air antennas or lifeline cable service anymore. "Clearly, we're becoming a cable replacement," Hartenstein said. DirecTV executives at SkyFORUM also said most retransmission consent agreements with broadcasters and local stations have been signed. Said Rob Golden, vice president of new ventures at DirecTV, "We won't have to take any channels down in May," when the grace period for reaching retransmission deals expires. Hartenstein also said consumers could see the debut of a AOL/DirecPC combination in late summer.
NRTC-DirecTV Eye Settlement
NEW YORK - Both sides in the legal skirmish involving the National Rural Telecommunications Cooperative's access to DirecTV's premium programming voiced confidence that a settlement can be reached in the ongoing dispute. Last year, the cooperative filed a suit against DirecTV claiming that the company needs to pay its affiliates commissions and other fees for premium programming once delivered by U.S. Satellite Broadcasting. USSB was acquired by DirecTV last year. Pegasus Communications, the largest distributor of DirecTV programming through the NRTC, also has a lawsuit filed against the DBS provider. Pegasus Chairman, President and CEO Mark Pagon told attendees at SkyFORUM on Tuesday that the legal matters won't go to court. However, reaching a settlement may take time. "This will be settled step by step," he said. Eddy Hartenstein, the Hughes executive overseeing DirecTV, agreed that a settlement can be reached. "We want to make it easy for all customers, NRTC or not NRTC, to get our channels," he said.
Local TV-Broadband Highlight SkyFORUM
NEW YORK - Local channels and broadband satellite platforms highlighted this year's spring SkyFORUM. iSKY President Tom Moore discussed the company's recent $50 million deal with EchoStar, in which the two are collaborating on developing and selling Internet access via satellite. He also said about half of the $750 million iSKY needs to launch its service has been raised by the company. Moore wouldn't confirm that the company plans an IPO. "We are evaluating all financing opportunities," he said. John Hutchinson of Local-TV-On-Satellite said his company may unveil partners and more of its plan for delivering local stations next month. LTVS wants to deliver local TV for several markets untouched by the two DBS providers, and it has positioned itself as the best solution for must-carry of all stations. However, the company needs spectrum. The semi-annual event in midtown Manhattan was well attended. More than 400 showed up for the all-day symposium.
Japan To Dominate Asia DBS Market
According to The Carmel Group's Asia 2000 DBS Data Book, more than 40 million subscribers will receive home satellite service throughout the Asian region by the close of the decade. Japan is expected to lead all growth in the region, with 15 million subscribers expected by year-end 2009. All DBS operators in Asia are expected to generate nearly $7 billion in revenue by the close of that same year. "Because it is such a relatively inexpensive, high quality and efficient means of delivering video, audio and data signals to billions of inhabitants residing under scores of satellite footprints, DBS systems will become the leading method for delivering these telecommunications signals to Asians during the first stage of the next decade," the report states. For more information on The Carmel Group's Asia 2000 DBS Data Book, call 831-643-2222.
COMP WATCH: Study Tracks Digital TV
- Study Tracks Digital TV Interest - "Digital TV: A Survey of Consumers in Digital Cable Markets," the latest survey from Horowitz Associates and S. Liebmann and Associates, states that interest in digital TV has increased among cable subscribers. According to the research, close to 46 percent of all cable subscribers voiced interest in obtaining digital TV, whether it's satellite-delivered services or digital cable. Digital cable penetration has increased to 10 percent, the study states, and that two out of 10 cable subscribers are likely to subscribe to digital cable for an additional $10 a month. For more information on the study, call Horowitz Associates at 914-834-5998 or S. Liebmann and Associates at 212-717-5213.
- AT&T Swaps Systems - Cable ONE, a Washington Post subsidiary, and AT&T Broadband agreed last week to swap cable systems. In a related transaction, Cable ONE and Insight Midwest have reached an agreement in principle for Insight to purchase a system from Cable ONE. Following completion of the transactions, Cable ONE will have systems serving about 149,000 subscribers in and around the Idaho communities of Boise, Idaho Falls, Twins Falls, Pocatello, and Lewiston, the Oregon community of Ontario, and the Utah community of Smithfield. AT&T will get cable systems serving about 107,000 subscribers in Modesto and Santa Rosa, Calif., and an undisclosed amount of cash.
- WCA Membership Grows - The Wireless Communications Association announced that its membership of LMDS and other millimeter wave licensees has reached 71. WCA's membership includes major providers such as Winstar Communications, Diginet Americas, Formus Communications and MaxLink Communications.