News Archive
Candid Comments from DIRECTV -- Posted by soullezz
on Saturday, March 31 2007
Many are predicting turbulent times ahead for the nation's DBS providers in light of the cable industry's mounting triple-play threat. But judging from recent comments of DIRECTV brass, satellite is doing just fine with the small dish behemoth quite content with its current position.
Speaking at the Banc of America Securities Media, Telecom and Entertainment Conference in New York City this week, DIRECTV EVP and CFO Mike Palkovic offered some interesting insights into how the company plans on moving forward. What took many by surprise was the executive's notion that broadband is not the end-all service and cable's triple-play may not be that imposing after all.
Palkovic said there was an apparent inconsistency between DIRECTV's stellar recent performance despite its continued push toward a broadband solution and cable's bundling success, but he said broadband is a "nice-to-have" service, not a "must-have." He also said DIRECTV in anticipating deserved compensation for the strategic value it brings to the marketplace via a 16 million-strong subscriber base.
According to Palkovic, DIRECTV is seeing a limited impact from recent cable successes and early entrants into telco video saying subs in these areas have remained steady as the rest of the sub base continues to grow. The exec also said DIRECTV is keeping an eye on the proposed XM/Sirius merger, but the DBS company is not in any way preparing for another push toward merging with its satellite rival EchoStar. He said that although the company believes a merger of the top two DBS companies deserves a fair shake on Capitol Hill, there has been no internal discussions about revisiting a move with EchoStar if the DARS merger is approved.
As far as moving forward, DIRECTV is banking on its vamped efforts on the high-definition front to separate itself from the competition. Palkovic reiterated the company's plans to broadcast 100 national HD channels by year's end and that of those 100, none will include any inferior channels like those on Rainbow's VOOM platform carried by DISH Network. Zing.
Report: XM/Sirius Merger = Monopoly -- Posted by soullezz
on Saturday, March 31 2007
Arguments on both sides of the XM/Sirius merger debate are making their way around regulators, analysts and industry press as a decision looms on the multiplatform horizon. Now, an independent study claims that if the deal goes through, the satellite radio industry will have a bonified monopoly on its hands potentially violating antitrust regulations.
According to the report sent to the Federal Communications Commission and the Department of Justice, satellite radio is a distinct product market and if the proposed merger between the industry's two major companies goes through, consumers would be at the mercy of a monopoly that likely violates antitrust laws. Conducted by Criterion Economics, the study claims to offer "concrete evidence and analysis to some of the most important questions that have plagued lawmakers since the merger was announced earlier this year."
For the study, Criterion's J. Gregory Sidak - former deputy general counsel for the FCC - was asked to determine whether subscription-based satellite radio services are a relevant product market for antitrust purposes, and to assess the unilateral pricing effects of the proposed deal. The study took into account competition from other audio products such as MP3 players and internet radio, and determined that satellite radio is a distinct product market for antitrust analysis. Even when the product market is expanded to include AM, FM and HD radio, the proposed XM/Sirius merger still raises serious antitrust concerns, the report said.
The Criterion study said the merger would be anti-competitive because it constitutes a monopoly under the most reasonable market definition and would increase seller concentration ratios to "unacceptably high" levels. The report also said the majority of efficiencies identified by the companies would not benefit consumers nor preserve consumer welfare.
The Criterion study was commissioned by the Consumer Coalition for Competition in Satellite Radio - a group claiming to be the only organization "dedicated to protecting the interests of satellite radio subscribers in the United States." Complete details of the report can be found at the group's website, http://www.c3sr.org.
In related news, the Alabama House of Representatives unanimously passed a joint resolution voicing opposition to the proposed merger of Sirius and XM. According to sources, the state hopes other state governments will introduce similar resolutions. The legislation will now go before the Alabama Senate.
XM Sued over Copyright Issue -- Posted by soullezz
on Monday, March 26 2007
A group of music publishers filed a lawsuit against XM Satellite Radio late last week that alleges the company has refused to stop widespread infringement of top copyrighted material. In the complaint filed in a New York federal court, the National Music Publishers Association (NMPA) charged that the satcaster's XM+MP3 service dodges copyright laws by allowing subscribers to make permanent copies of satellite-delivered tracks with various handheld devices without the permission of and compensation to rights holders.
Said Debra Wong Yang, the group's attorney, the service "constitutes pervasive and willful copyright infringement to the overwhelming detriment of copyright holders, legitimate online music services and, ultimately, consumers."
Despite the 1992 Home Recording Act allowing listeners to record music off the radio for personal use, NMPA brought the suit claiming the devices XM is promoting more resemble audio downloading services like Apple's iTunes and not traditional recording units. The iTunes service falls under separate copyright licensing regulations, and NMPA said XM's model is robbing musicians of proper royalties.
NMPA President David Israelite said the group's legal posturing is a last resort attempt that followed lengthy discussions between the parties over compensation rates. XM officials tagged the lawsuit as a negotiating ploy to gain an unfair advantage in the ongoing discussions for royalty payments.
According to court documents, the music group is seeking an injunction to stop the practice in question with a maximum of $150,000 in damages for each alleged infringement. The lawsuit could end up being one more hurdle in the company's plans to pull off its $13 billion merger with rival satellite radio provider Sirius.
One More Jab at Sirius/XM Merger -- Posted by soullezz
on Monday, March 26 2007
The National Association of Broadcasters took one more opportunity to voice its opposition to the proposed merger between Sirius and XM last week in comments sent to the Federal Communications Commission.
In a letter from the organization's president David Rehr, the NAB said if the merger is approved, the new company will control all of the spectrum allocated for satellite radio in the U.S., effectually barring any competitive entry in the foreseeable future. Rehr said the merger will create the opportunity for widespread abuse of power, and consumers ultimately will be the ones to suffer.
The NAB believes competition between the two satellite radio companies has served consumers of the technology well with each company differentiating itself through programming and equipment. Rehr said despite what satellite radio executives are claiming to be merger-specific public interest benefits, all "alleged" benefits would be more likely to occur without the monopolistic merger.
For example, "both of the parties are free today to unbundle their channel offerings... (and) a smaller programming package for less than $12.95 per month is possible without a merger," Rehr said.
"The repackaging of channels from both services into one offering is an illusory consumer benefit because it will result in the elimination of existing channels or formats." In the long run, he said, reductions in overall program availability will decrease program diversity.
Another "hollow" promise Rehr said XM and Sirius are making is of reduced prices for less overall programming being a benefit for consumers. The NAB head said any price concessions offered after the merger will "clearly be temporary, unlike their monopoly power, which will lead to price increases in the future."
Satellite radio officials have said that changes in the digital audio distribution marketplace justify the reversal of the commission's rules governing competition in the sector - namely that two companies must hold separate licenses. But Rehr said this notion is false, citing the group's incorrect definition of the competitive marketplace in order to "obscure" the merger's monopoly in satellite radio. "It is simply wrong to equate internet radio, local AM/FM and HD radio, MP3 devices, and iPods with satellite radio," Rehr said. "No other audio service is an effective substitute for a national multichannel mobile audio programming service, (nor can they) be expected to restrain the monopolistic impulses of a united XM/Sirius."
Driving the NAB's stance home, Rehr reminded the FCC that it previously rejected a merger between DIRECTV and EchoStar's DISH Network years ago to avoid a monopolistic satellite TV service. The broadcasting group is urging the commission to "recognize the value of continued competition in satellite radio and the adverse consequences" of the potential merger.
Competitive Concerns Over Liberty/DIRECTV -- Posted by soullezz
on Monday, March 26 2007
The end of last week gave players in the multiplatform business their first chance to comment on Liberty Media's proposed takeover of DIRECTV at the Portals. And among the first to share its opinions was EchoStar, which suggested the Federal Communications Commission should reject the transaction unless "meaningful additional commitments" are added to ensure consumers and rival video distributors are not harmed by the deal.
"At its core, this transaction would only exacerbate problems in the broken video programming market," EchoStar said in its comments filed with the FCC late Friday. "Liberty Media - and its sister companies affiliated with John Malone - has determined that additional 'distribution muscle' of DIRECTV's national platform is critical to its efforts to expand and enhance its programming assets.
"Thus, the net result of this transaction is that Liberty will rejoin the ranks of vertically integrated major media conglomerates - including News Corp. - that can dictate the terms and conditions of programming ... higher price and less choice ... to MVPDs and consumers."
EchoStar called for conditions on the deal, including access and arbitration rights to regional sports networks affiliated with Liberty. An attempt to limit conditions to the three RSNs Liberty Media is gaining through the DIRECTV acquisition should be rejected, the No. 2 DBS company said.
Also, program access protections should apply to all DIRECTV-affiliated programming, and to both domestic and international programming and markets, EchoStar said. In addition, the satcaster said conditions should apply to Liberty Media for at least six years after the close of the transaction.
Meanwhile, the American Cable Association also called for program access rules and non-discrimination conditions as part of the DIRECTV deal, including requirements covering Discovery channels. (Liberty Media has a stake in Discovery.)
And ACA, which represents small, independent cable operators, said the FCC should clarify and strengthen the rights of a collective bargaining agent appointed by independent cable companies for negotiations covering carriage of regional sports networks owned by Liberty/DIRECTV.
TiVo Mobile Lands on Verizon Wireless -- Posted by soullezz
on Saturday, March 17 2007
It's been a while since the TV industry has heard from TiVo and Verizon regarding their plans for mobile content, but a year after the companies first announced their plans it seems a product is finally on the way. According to industry press reports, the TiVo Mobile application for BREW-capable cellphones is now available to Verizon wireless subscribers.
Designed to give users "unprecedented" control of their television experience, the new mobile application allows TiVo owners to remotely control their TiVo Series2 or Series3 digital video recorders. Company execs said for $2 per month, subscribers to TiVo Mobile will be able to control their TV programming from wherever they receive a Verizon wireless signal.
It has been widely reported that the DVR-pioneer and Verizon had plans on launching the TiVo Mobile product commercially sometime last summer, but what the companies called a "technological delay" kept the service from hitting the streets until now.
TiVo offers a similar application for smartphone customers as well.
Effects of FCC Criticism on XM/Sirius Deal -- Posted by soullezz
on Saturday, March 17 2007
With recent hearings to determine whether the proposed merger between XM and Sirius will eventually be allowed, the Federal Communications Commission has come under fire from Congress that may force a closer look at the deal. Yesterday's FCC oversight hearing may not have been about the proposal specifically, but the heat being put on the agency may have a slightly negative impact on the proceedings.
Some of the most prominent criticism of the FCC this week was for the agency's lack of enforcement of concessions required with the approval of the AT&T/BellSouth merger last year. Because of this, said Oppenheimer's Thomas Eagan, there is increased pressure being put on the FCC to analyze the proposed XM/Sirius deal more carefully and to prepare to enforce any possible concessions.
The hearing marked the first formal meeting between the House Committee and the FCC in nearly three years, and the event gave Congress the opportunity to blast Commission members over their managing policies in the multiplatform industries. Congressmen criticized the FCC, specifically Chair Kevin Martin, for the agency's policies and maneuvering that seems to benefit big business rather than consumers.
Eagan suggested that the added pressure being put on Martin and other commissioners may make the agency "follow the lead anticipated by the Department of Justice in its review of the XM/Sirius merger."
The analyst said other issues have been raised with the FCC that could affect the proposed merger's outcome as well, namely diversity of license ownership and allocation and deployment of spectrum. Eagan said next Thursday's (March 22) open Commission meeting should detail further just how the agency will approach the XM/Sirius proposal. There will also be a Congressional panel to review the merger on Tuesday, March 20.
DIRECTV's First HD Competition: Time Warner Cable? -- Posted by soullezz
on Tuesday, March 13 2007
Analysts and observers of the pay-TV marketplace have long suspected that DIRECTV's plans for high definition later this year will be hard to match for any other provider. And until this week, it looked as if no competing video company would be able to offer the HD volume that the DBS giant says it will.
But reports surfaced Monday that one cable company - Time Warner Cable - says it will be able to go toe-to-toe with DIRECTV for the fight over high definition subscribers.
According to TVPredictions.com, TWX's Senior Vice President and Chief Programming Officer Melinda Witmer said the cable company will have the technical capacity to offer just as many high def channels as the satcaster by the end of 2007. Witmer told the HD-centric website that she is "100 percent" sure that Time Warner will have just as a compelling high definition lineup as DIRECTV.
The exec also commented on Time Warner's lawsuit against the satellite company over the DIRECTV commercials boasting three times more HD capacity than any other provider and the satcaster's recently announced deal with professional baseball.
As far as DIRECTV's HD commercials, Witmer said Time Warner Cable's rollout of switched digital video by the end of the year will allow the company to crank up the high def channels making DIRECTV's claim of three-times more HD factually incorrect. Competition is one thing, she said, but the cable company was not willing to accept the false statement. And the DIRECTV/MLB deal? Witmer said she wasn't sure why people have criticized the deal as if it were "rigged" against competition, and the issue boils down to the "evaluation of whether acquiring programming is too expensive or not."
C-COM Expanding Satellite Services -- Posted by soullezz
on Wednesday, March 7 2007
Mobile satellite technology firm C-COM Satellite Systems unveiled a new class of satellite-based internet service for its commercial and enterprise clients. The latest offering from the company is capable of delivering robust, reliable and flexible broadband airtime for its clients.
According to C-COM, the new service allows customers to select specific rates of speeds, type of usage and other parameters depending on individual needs. Cusomters will also be able to change their bandwidth requirements easily based on demand.
C-COM's existing commercial customers located in North America, as well as new customers from Central and South America, will be able to take utilize the expanded service features effective immediately, the company said.
Said C-COM President and CEO Leslie Klein, "With this new offering, C-COM will be able to deliver two-way internet services such as VoIP, video and high speed broadband on demand to our rapidly growing commercial/enterprise markets and at the same time extend our reach into new geographic areas where these type of service offerings are in great demand."
Telenor Lengthens Intelsat Deal -- Posted by soullezz
on Wednesday, March 7 2007
Fixed satellite service provider Intelsat took the lid off a multi-year contract with Telenor Satellite Services for transmission services on three separate spacecraft in C- and Ku-band. The capacity is being used for Telenor's Sealink maritime high-speed data communications solution through its Eik Teleport in Norway.
According to the companies, Telenor renewed its contract on the Intelsat 903 and Intelsat 704 satellites for C-band capacity connectivity in the Atlantic Ocean Region and Indian Ocean Region, respectively. Also through the agreement, Telenor will begin using Ku-band capacity on the Intelsat 907 satellite for North Sea and Atlantic Ocean distribution.
Company officials said Intelsat's global C-band and Ku-band spotbeams are well-suited to address the "mission-critical" needs of the maritime community and Telenor's Sealing service will help to continue to meet demands for network communications at sea.
Sealink utilizes Intelsat's geostationary satellite constellation in conjunction with Telenor's gateways located around the world for always-on maritime VSAT services. With Intelsat's C- and Ku- band transmissions, Sealink is able to offer business and entertainment communications including crew and passenger telephony, radio contact, internet access, video conferencing, large-volume data communications and TV reception, the companies said.
Coalition for 4G in America Sets Agenda -- Posted by soullezz
on Wednesday, March 7 2007
It's a jaunting task to take on the Federal Communications Commission - and as the saying goes, there is power in numbers. That's why a group of seven major technology/communications companies have banded together to form the Coalition for 4G in America - an initiative focused on urging the FCC to take action on the 700 MHz auction proceeding.
In a joint release late last night, EchoStar, DIRECTV, Intel, Yahoo! Google, Skype and Access Spectrum unwrapped their collective efforts to influence the regulatory agency with five principles aimed at affecting the proceeding.
First, the Congressionally-mandated DTV transition must remain on track. "Any modifications to the FCC's rules must not violate the Digital Television Transition and Public Safety Act of 2005, which establishes Feb. 17, 2009, as the hard date for the DTV transition and Jan. 28, 2008, as the deadline for the auction of the 60 MHz of commercial spectrum in the 700 MHz band," the group said.
Second, the Broadband Optimization Plan (BOP) should be adopted promptly. "Prompt action would ensure compliance with the statutory deadlines in the DTV Act, and would allow both public safety and commercial entities to begin to plan now for systems to be deployed based on BOP upon completion of the DTV transition," the Coalition said. "Adoption of BOP also would enable more flexible choice of broadband technologies in the spectrum allocated to public safety."
Third, the 15 MHz paired commercial allocation in the upper 700 band should be re-configured into a 16.5 MHz paired allocation. "The use of 5.5 MHz 'building blocks' gives an immediate 10 percent increase in bandwidth (which) allows more capable next generation broadband network performance," the group said. "Locating the paired 5.5 MHz commercial block directly adjacent to public safety's paired 5.5 MHz broadband block would better enable public-private partnerships and lead to potential cost savings for public safety."
Fourth, package bidding should be used in the upper and lower 700 MHz band. "The use of package bidding and the proposed licensing scheme facilitates more efficient geographic and bandwidth aggregation, such that bidders could easily sum to REAGs, or nationwide licenses. The use of package bidding and this licensing scheme would promote new entry by permitting flexible business plans and preventing a company from blocking nationwide entry simply by acquiring one regional license."
And lastly, two sided auctions should be used to enable the aggregation of the upper 700 MHz commercial blocks in a singly, more efficient auction.
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