News Archive
Federal Inquiries Continue into XM Repeaters -- Posted by soullezz
on Wednesday, February 28 2007
The Federal Communications Commission has notified the country's largest satellite radio provider that it is still looking into hiccups with the company's network. XM Satellite Radio said this week that is has received a letter from the agency saying it continues to investigate possible irregularities with the satcaster's repeater network.
According to reports, XM filed a statement with the Security Exchange Commission that implied certain elements of its repeater network - designed to enhance nationwide reception - may be different from the data the company originally filed with the FCC.
Upon being notified of the ongoing inquiry, XM has requested a 30-day special temporary authority (STA) and a 180-day STA to continue operating its entire repeater network. The company said that any action the FCC takes could result in a fine or inflict changes in the repeater network that could affect service in some areas.
In other XM news, the satellite radio company is teaming up with Knitting Factory Entertainment for the launch of an alternative music performance series "Live From the Knitting Factory on XMU." Premiering March 2, the weekly concert series will feature performances from new and established alternative bands recording at the entertainment company's clubs in NY and LA to air on XM's college/indie music station (channel 43).
Striking Out on DIRECTV's MLB Deal? -- Posted by soullezz
on Wednesday, February 28 2007
It started last week when news hit the streets that DIRECTV and Major League Baseball were getting close to announcing an exclusive deal for the league's out-of-market games. Now, because of the subsequent firestorm, reports are suggesting the deal for MLB Extra Innings could be in jeopardy.
According to an article from financial news service CNN/Money, professional baseball executives are reconsidering a plan that would award DIRECTV exclusive rights to carry up to 60 games every week, including many in high-def. The story sites a source "familiar with the negotiations" as saying that the league's programming package will be available to all TV providers.
Since the initial reports surfaced, many have expressed concern with the idea of "must-have" programming exclusivity. Former Presidential candidate Sen. John Kerry (D-MA), upon hearing the news, vowed to investigate the deal if it were to go through. And DISH Network operator EchoStar - DIRECTV's main rival - said the company had "crossed the line" with its latest maneuvering. An anonymous source from DIRECTV told SkyREPORT that EchoStar's stance was merely "sour grapes," but the company's sentiments seem to be gaining traction among the pay TV crowd.
The CNN/Money report source said that it would be surprising if MLB Extra Innings was not available to EchoStar and cable operators when the season starts. However, the story also quotes an MLB source as saying he was not aware of any change in the plan to give DIRECTV exclusive rights.
DIRECTV Director of Public Relations Robert Mercer told SkyREPORT the company could not comment on the negotiations at this time.
Satellite Feels Heat from Market Woes -- Posted by soullezz
on Wednesday, February 28 2007
Stocks suffered their worst losses since just after the Sept. 11, 2001 terror attacks, prompted by a major sell-off in China's stock market, higher oil prices and some uninspiring economic news. With the Dow Jones experiencing a brief down turn by as much as 545 points, the NASDAQ falling nearly 100 points, and the Standard & Poor's Index tumbling about 50 points, industries across the board - including satellite - all felt the aftershocks.
In the domestic DBS market, both DIRECTV and EchoStar took hits as the markets reached their lowest point in years. At the end of trading on Tuesday, DIRECTV closed at $21.89, down $1.11 and 4.83 percent from the day before. DISH Network operator EchoStar also ended the day on a sour note finishing at $40.90 - a $1.57 decrease representing -3.7 percent.
On the audio side of satellite, even the prospects of a merger between the country's two sat radio providers couldn't fend off the effects of a monstrous day on Wall Street. XM Satellite Radio ended the day down 4.09 percent to close at $14.32 - a 61 cent drop from Monday. Potential merger partner Sirius Satellite Radio also got bitten by the downslide turning in a 1.94 percent loss of 9 cents to close at $3.65 - just 15 cents above the stock's 52-week low.
The Sirius hit was particularly disappointing for investors as the company also released full year and fourth quarter results this week. As the market was taking its plunge, the company tried to remain optimistic about its 82 percent year-long subscriber increase and its positive free cash flow at the end of 2006. The company added 2.7 million new subs last year capturing a 62 percent share of satellite radio sub growth.
Other results from the Sirius camp overshadowed by the market's black cloud: Total revenue for 2006 increased to $637.2 million, up 163 percent from 2005; fourth quarter revenue increased 142 percent year-over-year to $193.4 million; and SAC per gross subscriber addition was $114 for 2006, an 18 percent improvement over the previous year. The company also posted positive free cash flow in 4Q of $30.4 million.
Editorial Note -- Posted by soullezz
on Friday, February 23 2007
Hi guys,
In case you havent noticed we have been making a lot of changes to the site, and upgrades. If you notice something is not working, be patient, everything will be taken care of as soon as possible.
Just a reminder, all new files are now being posted in the 2007 archive.
EchoStar Inks Satcom Deal with ARTEL -- Posted by soullezz
on Friday, February 23 2007
EchoStar subsidiary EchoStar Fixed Satellite Services entered a long-term contract with communications company ARTEL to provide fixed sat service for the Department of Defense. The companies said through the deal, EchoStar will provide ARTEL multiple satellite transponders within its satellite fleet.
EchoStar Fixed Satellite's capacity will be used by the U.S. Military in conjunction with the Joint Network Node (JNN) mobile communications system. The JNN allows the military to route communications and data - as well as VoIP traffic - over commercial satellites to connect with other military networks, the company said.
EchoStar Fixed Satellite said the company is pleased with the agreement and the opportunity to provide ARTEL with bandwidth and uplink services. With EchoStar's fleet of 14 satellites, the company is able to establish a satellite solution to achieve the requirements presented by ARTEL and the DoD.
DIRECTV's Legal Pursuit of Programming Misuse -- Posted by soullezz
on Monday, February 19 2007
The nation's largest satellite TV provider is eying restaurants and bars that are misusing DIRECTV programming and the company is looking to make its case in the courts. In an effort to turn up the heat on offending businesses, the satcaster obtained a $50,000 judgment against a bar in New York and recently settled several other commercial misuse cases to date.
According to the company, the $50K judgment was the result of a civil lawsuit filed on behalf of DIRECTV against Bounce Deuce for violatinos of several federal statutes, including the Cable Communications Act of 1984 which provides for statutory damages of up to $100,000 per violation. The suit with Bounce Deuce was one of five complaints DIRECTV filed last year against commercial establishments in NY and Florida, the company said.
The judgment was entered against the bar for unauthorized showing of DIRECTV's exclusive football programming package NFL Sunday Ticket. The DBS provider filed two other similar civil complaints against New York businesses in December which remain pending in federal court. DIRECTV also filed civil complaints against two Florida businesses for unauthorized public display of residential service for commercial purpose - both of which "have been resolved."
In other DIRECTV news, the company is launching local and network broadcast channels to customers in Laredo, TX in April. Counting the new Lone Star state town, DIRECTV will offer local channels in 143 markets, a total the company says represents about 94 percent of U.S. TV households.
BSkyB's New Digital (Terrestrial) TV -- Posted by soullezz
on Friday, February 9 2007
News Corp.-controlled British Sky Broadcasting (BSkyB) is developing plans to launch a subscription-based TV service on digital terrestrial television (DTT) later this year. Sometime during the summer, customers will be able to receive some of the company's most popular programs - including sports and movies - through a conventional rooftop antenna and a DTT box.
BSkyB said that by offering some of the popular content to terrestrial viewers the company is looking to create more choice for those interested in upgrading from free-to-air (FTA) to pay-TV. The move could be an attractive commercial opportunity for the company by attracting new subscribers to Sky in addition to its plans on expanding its flagship satellite service.
According to the company, the new lineup of channels will offer a range of content including live coverage from the Barclays Premiership, movies, other entertainment and news. Full details, including pricing, branding and complete channel lineup will be unveiled closer to the launch date.
The new service will use existing capacity Sky is currently using to broadcast Sky Three, Sky news and Sky Sports news. As a result, the company said, these channels will cease to be available FTA via DTT in advance of the new service.
Also, BSkyB will use MPEG-4 compression technology to broadcast its pay-TV channels on DTT and utilize a secure conditional access system similar to the one it uses for its satellite offering.
DIRECTV 4Q Reaction -- Posted by soullezz
on Friday, February 9 2007
There's no question: DIRECTV turned in some pretty impressive numbers for the company's fourth quarter last year. With higher revenues, subscribers, and ARPU that most anticipated, coupled with lower churn and subscriber acquisition costs than observers envisioned, it's no surprise that industry analysts were taken back by the satellite provider's winter results.
"DIRECTV has been able to consistently beat street expectations this year (and) this quarter was no different," said Citigroup's Jason Bazinet. "DirecTV is not only surviving in a triple play world, but is actually growing quite robustly."
However, even with the impressive numbers over the three month period ending Dec. 31, the analyst said DIRECTV's stock is fully valued citing two factors contributing to its "hold" rating: expectations of higher churn in the future, and increasing programming costs.
Recently DIRECTV tightened its credit policies in order to focus on signing higher quality subs. The move lowered churn from 1.7 percent in 2005 to 1.6 percent in 2006. But "with Adelphia now being a part of bigger cable companies, Comcast rolling out voice across its entire footprint, and Verizon entering the fray with its own triple play offering, a meaningful reduction in churn is unlikely" for the company, Bazinet said.
The analyst also said that DIRECTV will have incremental costs associated with Showtime, NFL Network and FOX News. Excluding these contracts, he said, programming costs on a per sub basis would increase by less than 5 percent.
Said Oppenheimer's Thomas Eagan, "Although we expect many of DIRECTV's positive financial trends to continue, we see more downside than upside potential as many of the positive catalysts have already been announced or achieved. At current levels, the market appears to expect additional transactions to benefit the stock. Although we believe a cash dividend could follow the DIRECTV stake swap to Liberty Media, we do not consider the company to be a takeout candidate."
FCC Head: Satellite's OK, Cable? Well... -- Posted by soullezz
on Saturday, February 3 2007
During an oversight hearing held by the Senate Commerce Committee Thursday morning, Federal Communications Commission Chairman Kevin Martin had nothing but kudos for the various satellite businesses.
He told the panel that DBS today "provides consumers an important competitive choice. And satellite offerings are sometimes the only multichannel video option for rural Americans." Martin also had good things to say about satellite radio.
However, in his prepared remarks, Martin complained about cable prices going up "at a disproportionate rate - 38 percent between 2000 and 2005 - when compared against other communications sectors." And he offered support for a la carte programming options for consumers.
Martin also pointed to broadcast digital technology, including a small mention of multicast, and how the advances could benefit consumers. He said with digital spectrum television broadcasters can offer high def programming, multiple programming streams, data services and video over mobile devices.
"Many of these business plans are in their infancy, with revenue streams uncertain, while the costs of the transition are large and immediate," Martin said. "And those costs come at a time of increased competition for advertisers from other media - many of which, unlike broadcasters, have a subscription revenue stream in addition to advertising revenue."
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