News Archive
Satellite TV Destined for Doom? -- Posted by soullezz
on Wednesday, January 31 2007
With AT&T recently reiterating its intentions on sticking with IPTV for video, potential for the telco giant to continue pushing its partnership with DISH Network seems highly diminished. Add to that Liberty Media's asset swap for DIRECTV entering an arduous and lengthy midpoint in Washington that could last for several months or more. What's left is a satellite TV sector limping through slower (and slowing still) subscriber growth rates and surviving an increasingly competitive market.
Industry analysts are saying what will matter during the next handful of quarterly reports for the satellite TV providers is operating results - those likely to continue reflecting the slowing of new subscriber additions. As subscriber growth had already begun to wane, the entire pay-TV segment is now losing a key propellant as the housing market constricts as well.
According to Bernstein Research's Craig Moffett, if current trends remain, "the drop in housing completes will shave 650,000 homes from pay-TV industry growth in 2007." With DBS taking about 30 percent of gross additions, the analyst said perhaps 200,000 fewer new satellite subscribers - or about 12 percent of 2006's estimated DBS net adds of 1.72 million - could be expected.
If a stalling housing market isn't bad enough for the DBS crowd, Moffett said the cable industry's triple-play bundle has sharply improved the wireline provider's competitiveness - a reversal of what had been a years-long consumer price/value advantage for satellite. Data from the satellite companies show that subscriber growth in the third quarter was the slowest on record for both DIRECTV and DISH.
"As single product service providers (video only), revenue growth comes from just two sources; subscriber growth and ARPU growth," the analyst said. "And while ARPU growth has remained strong, it too is likely to decelerate slightly over the next year, in the wake of markedly smaller price increases this year."
What to Expect from Sky's Quarterly Results -- Posted by soullezz
on Tuesday, January 30 2007
British Sky Broadcasting releases fiscal results Wednesday. And the U.K./Irish satellite TV platform controlled by News Corp. is expected to see growth … albeit slower when compared to previous quarters.
According to this week's Inside Satellite magazine, Morgan Stanley suggests Sky will see fiscal second quarter net customer additions grow by 198,000, taking the platform's overall total to 8.46 million. That projection would come short of the 215,000 added by the service during the same three-month period last year, "again suggesting that Sky's growth is much softer," states Inside Satellite.
Still, Sky's wired broadband offering may show a lot of promise for the three-month period. Morgan Stanley predicts Sky will report 120,000 net additions for the service, compared to a gain of 74,000 broadband lines for the previous three-month period, according to figures listed by Inside Satellite.
Portals Gets DIRECTV Details from News Corp., Liberty -- Posted by soullezz
on Tuesday, January 30 2007
News Corp. and Liberty Media formally approached the Federal Communications Commission with their proposed transaction that would give John Malone's company a controlling stake in DIRECTV.
In a filing sent to the Portals, the companies said the transaction would address and even "eliminate concerns previously identified by the commission by reducing DIRECTV's vertical integration with must have broadcast and regional sports programming, while still enabling DIRECTV to draw upon Liberty Media's experience and expertise."
Also in the filing, the companies said Liberty, once it takes over the DIRECTV stake, would adhere to conditions placed on News Corp. concerning access to programming controlled by John Malone's company. That includes three regional sports networks Liberty Media is gaining from News Corp. through the transaction.
When similar conditions were placed on News Corp. when it took over DIRECTV, "The commission found these safeguards sufficient to address any potential competition-related concerns arising from News Corp.'s interest in DIRECTV, and the same conclusion should apply even more forcefully for Liberty Media," the companies said in their filing.
The companies also said the deal could address overall horizontal concentration concerns with a media company owning a video distribution platform.
"Unlike News Corp., Liberty Media does not own multiple broadcast stations and holds no attributable ownership interest in any broadcast television network," the companies said in the filing. "The proposed transaction will eliminate entirely several of the concerns expressed by the commission when News Corp. invested in DIRECTV several years ago, and greatly reduce other such concerns."
Observers of Liberty's DIRECTV takeover, citing the traditional maneuverings the deal must obtain from regulators, said they expect the transaction to be completed during the second half of the year.
News Briefs: Murdoch Enters War for Tribune -- Posted by soullezz
on Friday, January 26 2007
BUSINESS -- Soon-to-be former-DIRECTV head Rupert Murdoch has teamed with the Chandler family to make a bid for the Tribune Company. Murdoch's late entry into the bidding war is focused on acquiring New York Newsday and combining its back-office operations with the New York Post to cut costs, sources said. The transaction would give the Australian media mogul a stake in two newspapers in the nation's No. 1 market.
ACCOLADES -- Disney/ABC executive Anne Sweeney and Turner Broadcasting System will be honored at the T. Howard Foundation's 14th Annual Diversity Awards Dinner on April 25 in New York City. Sweeney, Co-Chair, Disney Media Networks, and President, Disney-ABC Television Group, will receive the foundation's Executive Leadership Award in recognition of her efforts to encourage diversity in the multimedia and entertainment industries.
ADVERTISING -- With the explosive growth satellite-based GPS services have experienced over the past few quarters, Garmin is looking to capitalize on the segment's recent popularity. The company said it will air a commercial during this year's Super Bowl marking the first time a consumer electronics company specializing in personal navigation devices has advertised during the big game.
MISCELLANY -- President George W. Bush's State of the Union address this week was carried by nine national television networks - ABC, CBS, FOX, NBC, CNN, FOX News Channel, MSNBC, Telemundo and TeleFutura. According to Nielsen Media Research the speech garnered a 29.6 rating being viewed in nearly 33 million homes.
Satellite Radio Never Sounded So Good -- Posted by soullezz
on Friday, January 26 2007
The European Space Agency said this week it has developed satellite radio technology that eliminates singal loss in tunnels and other reception difficulties. The new technology centers around a newly designed flat mobile antenna built directly into a vehicle's roof.
Current satellite radio services from XM and Sirius transmit to mobile satellite receivers using proprietary communication satellites often assisted in areas by a rural network of transmitter masts. ESA's new mobile antenna receives signals in the frequency band already being used by existing communication satellites.
In addition, the group said, ESA's system employs a cache memory - i.e. a hard disk or its solid-state equivalent. Received signals are stored and played back after a short time shift - or much later - thereby preventing signal loss in tunnels or behind obstructions. Users can also choose a specific part of a program to listen to or pause, the agency said.
Thumbs Up for a DIRECTV/DISH Merger? -- Posted by soullezz
on Saturday, January 20 2007
Net neutrality, a strengthened universal service fund, provisions to allow local governments to offer commercial telecommunications services and regulation to "encourage" DSL stand-alone offerings will all get the thumbs up from Congress in 2007 if Rep. Rick Boucher (D-VA) has his way. In an interview for CSPAN's "The Communicators" series, Boucher further suggested that broadband services should be a subject for universal service expenditures.
While Boucher declined to comment on the possibilities of a merger in the satellite radio sector, he offered some encouragement for renewed talks of a DIRECTV/DISH merger. In light of the current highly competitive multiplatform sector, he said, "If a merger between these two was presented today ... analysis at the Justice Department and the FCC could prove very different."
The C-SPAN interview with Boucher, who is a member of the House Energy & Commerce Committee and its subcommittee on Telecommunications and the Internet, can be viewed on C-SPAN on Saturday, Jan. 20 at 6:30 p.m. or Monday, Jan 22, at either 8 a.m. or 8 p.m.
DIRECTV Unveils 2007 Price Increases -- Posted by soullezz
on Saturday, January 20 2007
The nation's largest satellite company has notified its dealers and retailers that it will raise prices for new subs by nearly 10 percent on its lower tiers. Slated to take effect just days after the Super Bowl, DIRECTV will enact its latest round of price hikes on Tuesday, Feb. 6.
Also that day, the company will implement a 5-6 percent raise in monthly bills for current subscribers of the lower-end tiers. DIRECTV said that prices for the high-end programming packages will remain the same for both new and current customers.
According to Bernstein Research's Craig Moffett, the increases for new subscribers will average about 7 percent across the tiers. For current subs, the analyst said, total increases should average out to about 4 percent.
"This move follows EchoStar's recent announcement that it is increasing (DISH Network's) prices by an average of 4 percent" and the company's "pricing action is similar to both EchoStar's and to recent price increases announced by most cable operators," Moffett said. "However, DIRECTV's pricing appears intended to appeal to higher-end subscribers. While EchoStar is holding the line on pricing at the low end - and thereby emphasizing its value advantage to price sensitive consumers - DIRECTV is raising prices at the low end thereby emphasizing their positioning as the premium provider of video."
Moffett said that for both companies, the overall increase is "significantly" less than the average increases from 2006. DIRECTV's price hike is a reflection of the company trying to further differentiate the two competing services at their respective "high end/low end poles."
Satellite Radio Merger in 2007? -- Posted by soullezz
on Saturday, January 13 2007
Some think the merger of Sirius Satellite Radio and its rival XM will never garner enough support in Washington to allow a lone satellite radio company. Others say considering the entire landscape of digital music, a merger between the two yet-to-be profitable companies makes perfect sense and it could happen as soon as this fall.
Citigroup analyst Eileen Furukawa this week raised her 12-month price target on XM by $5 per share telling clients at an investor conference that she sensed an increased openness on the company's consideration of such a merger. On hand at the event: XM Chairman Gary Parsons and CFO Joe Euteneuer.
While it is true that the combination of the two satellite radio players would face some hurdles, Furukawa believes if the companies worked to resolve differences on how they count subscribers and pricing concerns, the deal could be beneficial for both sides. The companies could accomplish a great deal of cost-cutting by joining forces in areas like programming, marketing and satellite business, she said.
The analyst said XM believes if the Justice Dept. were considering the threat of competitive disruptions related to a possible merger, it would take a broad view of the competitive landscape - one including terrestrial radio, iPods and MP3 players, HD radio and internet radio. The regulatory wildcard, so to speak, remains with the FCC, Furukawa said.
She also said both XM and Sirius would have to reconcile several matters. For example, XM would probably demand a substantial premium if it were to be acquired by Sirius. Also, the two companies have different ways of separating line items on their financials. Furukawa maintained her "buy" rating on XM's stock and raised her price target to $21 from $16.
CES Impact on Pay-TV -- Posted by soullezz
on Saturday, January 13 2007
With all of the news coming from Las Vegas this week, one thing is clear: the battle for TV viewers will continue as cable and satellite TV operators focus on product bundles and HDTV. As cable operators expand the rollouts of triple-play services, and satellite TV providers zero-in on the benefits of high-definition and interactive services, analysts are saying the announcements coming from CES will likely act as a complement rather than a substitute for subscriber additions.
According to Oppenheimer's Thomas Eagan, cable companies will likely benefit in the year ahead from not only their triple-play bundles but also satellite operators' continued focus on increasing operating margins via lower subscriber acquisition costs (SAC) and not subscriber growth. The analyst said that while his firm is somewhat concerned about the increased risk of Washington regulation heating up in 2007, negative impacts for the industry could be offset by the upside that exists for several pay-TV companies' stocks.
For starters, Eagan said DIRECTV's high-def bonanza - plans that include the launching of two new satellites increasing the company's HD offering to 100 national and 1,000 local HD channels - is one of the satcaster's efforts that has some of the strongest upside. Throw in DIRECTV's announced global gaming league with partner BSkyB (among others) and the company has a couple solid initiatives that can help lead it into 2007.
Other new services announced at CES that Eagan said will benefit the pay-TV segment include Apple's new iTV set-top box that can wirelessly transfer video and music from the PC to TV, and Sling Media's partnership with CBS to launch the SlingCatcher - a device that allows viewers to clip programming from live TV and share it with others via email.
Other news out of Vegas Eagan said will bolster pay-TV's 2007: Comcast chair Brian Roberts detailing the company's plans to launch commercial services to 5 million small businesses in its footprint.
Has CES Helped Declare HD Format War Victor? -- Posted by soullezz
on Thursday, January 11 2007
An onslaught of high-definition-related announcements are peppering analysts, investors and show attendees at this year's CES. But even with all of the HD news, is the planet's largest consumer electronics show helping the world of digital media declare a winner in the format war between HD-DVD and Blu-ray?
HD-DVD supporters have said this week that they anticipate selling nearly 2 million HD-DVD players in 2007. Not to be outdone, Blu-ray backers are promising the release of even more movie titles and sales of even more players. If that's not enough, two CE manufacturers unveiled a plan to alleviate consumer concerns about picking the wrong high-def DVD format with a product that is compatible with both. So which format is winning the war?
No one, said HD insider Phillip Swann, and it's painfully clear that neither HD-DVD or Blu-ray are close to winning the biggest format war since Beta vs. VHS.
"Prior to the show, industry journalists and analysts speculated that the trade show might offer some announcements that could signal the momentum is shifting to one format. Certainly, the electronics industry must have hoped it would because high-def DVD sales have been dismal," he said. "However, the news from CES this week has been a mix of spin and suspect product announcements."
So while it doesn't appear that this year's CES will declare the high-def DVD format winner for 2007, Swann said what is becoming clear is that the industry will still be debating the war when attendees arrive in Las Vegas for the 2008 show.
EchoStar Deal Takes Racing on the Road -- Posted by soullezz
on Thursday, January 11 2007
It's no secret: TV loves NASCAR. So in the face of DIRECTV's recent expansion of its race-day coverage, rival EchoStar and its DISH Network has signed a deal of its own that will help the company attract some of those dedicated race fans - and the advertisers that spend big money trying to reach them - to its satellite TV service... and beyond.
Here in Las Vegas, EchoStar unveiled a joint effort with Cellpoint Mobile to develop a customized iTV SMS solution through DISH Network's new Racing Interactive TV platform. DISH Racing Interactive will provide viewers with breaking news, stats, results, TV listings, driver profiles and interactive voting features all through the companies' multi-media platform via set-top boxes, internet and mobile phones.
According to the company, the new interactive mobile service is designed to meet a growing demand for consumer specific content and value-added services by creating a personalized and secure mobile experience. Powered by Cellpoint Mobile, the new service will include a branded mobile content shop and "content-related revenue opportunities" with the DISH Racing Interactive brand.
DISH said the service will be accompanied by a turn-key wireless marketing and alert system to be integrated into both the DISH Racing Interactive web and the iTV platform. The service will enable viewers to sign up for specific alerts through the DISH Racing Interactive web brand as well as directly through the iTV application, the company said.
Group: Technology - Not Gov't - Should Regulate TV Content -- Posted by soullezz
on Thursday, January 11 2007
A couple years ago a group of individuals and organizations started promoting the use of parental controls and supporting those who prefer individual control of TV content as opposed to increased government regulation. TV Watch - now representing more than 4 million American viewers - has now gone on the offensive in a battle with Washington activists trying to get lawmakers to regulate the images being shown on TV across the country.
TV Watch says that television has come a long way with today's audiences using broadband, DVRs, VOD, iPods and cell phones to expand and enhance their TV experience. These new technologies mean consumers have more selection than ever, and maybe more importantly, more control over what they see on TV.
"Activists in Washington who continue their push for increased government regulation of television content refuse to accept the advances in technology that allow parents to enforce the decisions they make about what their children should see on television," said Jim Dyke, TV Watch executive director. "They don't want Americans to know that parents have the tools to make informed decisions - and to enforce those decisions - because it would make their approach obsolete."
According to the group, 180 million television sets have been sold with a built in V-chip since 2000, 86 percent of TV households get TV from cable and satellite providers that include parental control options and nearly eight percent of US homes use a DVR - a number expected to grow to 39 percent by 2010.
In addition to existing tools like TV ratings, the v-chip, cable and satellite blocking programs, new tools are available to parents as well, the organization said. In March 2006, TiVo announced a new search feature that helps parents find kid-friendly programs.
"Ninety-one percent of parents say they personally take some steps to manage what their children see on TV," TV Watch said. "If a program is on it's because someone searched for it, found it and selected it."
DssCommunity's Top Five FTA Recievers -- Posted by soullezz
on Saturday, January 6 2007
This is a current listing based on hardware, value, and user feedback.
Star Rating for each criteria is on a scale of 1 to 5.
1. ExtremeView Magnum xv3300
¤¤¤¤ | ¤¤¤¤¤ | ¤¤¤¤¤
(best video quality / superior firmware updates)
2. Viewsat vs2000 Extreme
¤¤¤ | ¤¤¤¤ | ¤¤¤¤
(proven support / true hardware blindscan)
3. Neosat iPro 1000
¤¤¤¤¤ | ¤¤¤¤ | ¤¤¤
(most flexable / state of the art / excellent back up unit)
4. Viewsat PVR 7000
¤¤¤¤¤ | ¤¤¤ | ¤¤¤
(sexiest chasis / coolest options)
5. Neusat SP 6000
¤¤¤ | ¤¤¤¤¤ | ¤¤¤
(best value / USB jumpdrive / best GUI)
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Editor's Note
Dems Bump GOP, CEDIA Next? -- Posted by soullezz
on Saturday, January 6 2007
The Democrats are shaking things up as they prepare to take control from the Republicans on Capitol Hill - and other groups may be feeling the party's new-found power. Because the Dems are also trying to find a home for their 2008 national convention, the Custom Electronic Design & Installation Association (CEDIA) is finding itself at the epicenter of some post-election aftershocks.
At issue is where the 2008 Democratic National Convention will be held. Denver - with the help of a $5 million pledge from both Comcast and Qwest - is in the running to host the event along with New York City. The problem is that the Mile High City's recently-expanded Colorado Convention Center is in the middle of a three-year contract with CEDIA - and both events are scheduled so close to one another that one would have to move.
If Denver is awarded the DNC and it is held at the CCC, a total of $150 million worth of business - including CEDIA's annual expo - would have to be displaced in order to make room. According to a story in the Denver Post, the August 2008 DNC would attract somewhere in the neighborhood of 35,000 people to the city, whereas CEDIA is expected to draw about 28,000 with an economic impact of $56 million.
However, DNC bid specs called for 650,000 gross square feet of space with unobstructed views for 18,000. The Post said the CCC's largest single area space - the exhibit hall - is less than 600,000. Denver's Pepsi Center facility, home to the Denver Nuggets and Colorado Avalanche, could accommodate the Democrats in 2008, but union officials are suggesting the event should go forward at the CCC.
DIRECTV Swap: More Downside than Up? -- Posted by soullezz
on Tuesday, January 2 2007
Now that the asset swap between Liberty Media and News Corp. for DIRECTV has been reached, many industry analysts and pay-TV investors are left to figure out how the deal will impact the satellite provider and its performance. Although there appears to be several positive financial trends in DIRECTV's future, some see the transaction as having more downside than up.
One such analyst is Oppenheimer & Co.'s Thomas Eagan who said despite a market that appears to expect additional transactions that benefit the stock, many of the company's positive catalysts have already been achieved. With the slim likelihood of such a transaction in the near term, Eagan said DIRECTV's stock may linger near current levels until some big news comes along.
"In addition to the DIRECTV stake, Liberty is receiving $550 million in cash and three regional sports networks (RSNs): Fox Sports Rocky Mountain, Northwest, and Pittsburgh," he said. "If you back out the value of these additional assets (which we value at $1 billion, including the cash) from the DIRECTV stake of $11.8 billion market value (as of 12/21/06), the DIRECTV stake has an adjusted value of $10.8 billion, or $23 per share."
Without any additional transactions on the horizon, Eagan said Liberty has little need to increase its stake to exert control. News Corp., on the other hand, exerted plenty of control with its 34 percent ownership. The analyst also said that getting lawmaker's approval for a merger of DIRECTV and DISH "will be as difficult as was when it was rejected several years ago" in light of the recent change in congressional control.
DIRECTV closed at $24.94 at the end of trading Friday.
Court TV Dropped from DISH Lineup -- Posted by soullezz
on Tuesday, January 2 2007
The year-end programming carriage spats that have surfaced between programmers and platform providers apparently caught up with a satellite TV service.
On New Year's Day, CourtTV began carrying a message on its Web site saying its service is no longer available on DISH Network, EchoStar's DBS offering. The site asks dedicated fans to stand up "to this injustice" and gives viewers a toll-free number they can call about the loss of service.
In response, EchoStar said in a statement it regrets the disruption of service. However, prior to the loss of CourtTV, the channel's parent Turner Networks refused to offer an extension in the company's America's Top 120 Package for continued negotiations, the satellite TV company said.
"We are working hard to negotiate a fair contract with Turner Networks and CourtTV," said Eric Sahl, senior vice president of programming for EchoStar's DISH Network. "But we must also protect our customers from unreasonable demands. It is not fair to ask our customers to pay a DBS premium for a channel owned by the second largest cable operator, Time Warner. We take pride in offering consumers the best value for pay TV service in the industry, and we remain committed to keeping our cost structure low to the benefit of our customers."
EchoStar said it "diligently tried" to reach an agreement with Turner Networks for continued carriage of CourtTV. "Unfortunately, Turner Networks refused to deliver an offer for carriage in America's Top 120 package that fairly reflects CourtTV's overall ratings performance and value," the company said.
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