News Archive
DISH Launches Branding Campaign & Report: Brazil Clears DirecTV/Sky Consolidation & WildBlue Aims to Connect Surfers in Bluegrass State -- Posted by soullezz
on Sunday, May 28 2006
DISH Launches Branding Campaign
This week, EchoStar launched a multi-media advertising campaign highlighting package options for DISH Network, with the tagline that consumers have the power to "Pick Your Package, Pick Your Price."
Elements of the campaign will continue to support DISH Network's brand message: "Better TV for All," the company said. The effort launched Thursday with national television spots, followed by direct response TV ads, print and Web advertising that will run throughout the summer.
There are three primary package lineups - the DISH America's Top offerings, DishHD and DishLATINO - plus package pricing as low as $19.99 a month.
Jody Martin, senior vice president of marketing for DISH Network, said the campaign emphasizes the consumer flexibility of choosing packages.
"We understand that when it comes to individual TV viewing habits and budgets, one size does not fit all," Martin said. "We know consumers are frustrated by having to pay a lot for programming they don't watch, and our new branding campaign focuses on the fact that DISH Network offers the widest choice of packages so they can just pay for what they want."
Report: Brazil Clears DirecTV/Sky Consolidation
On Thursday, regulatory authorities in Brazil cleared DirecTV's acquisition of Sky Latin America, a move that will consolidate Latin American satellite TV operations controlled by News Corp., news sources reported.
Brazil was the final Latin America nation to approve the transaction.
In October 2004, News Corp. agreed to give its stake in Sky to DirecTV in an effort to consolidate the regional businesses. In the end, the deal would give DirecTV Latin America a 72 percent stake in DirecTV Brasil and Brazilian media group Organizacoes Globo would own the remaining 28 percent.
WildBlue Aims to Connect Surfers in Bluegrass State
WildBlue Communications partnered with ConnectKentucky, an alliance that supports broadband access throughout the Bluegrass State. The partnership aims to get satellite broadband to homes and small businesses in communities not currently served, or underserved, by other high speed providers.
ConnectKentucky is a coalition of technology companies supporting the state's "Prescription for Innovation" that's working to provide broadband access to all state residents by 2007. The effort was announced in 2004 by Gov. Ernie Fletcher to address Kentucky's low ranking in proportion of high-tech businesses, household computer use and citizen internet use.
More information on ConnectKentucky is available at www.connectkentucky.org.
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Sides React as XM Abandons WCS Acquisition & More Litigation Facing Satellite Radio Company & Does HDTV Matter Yet? & Sky HD Launches This Week & NEWS BRIEFS: WildBlue Extends Free Installs -- Posted by soullezz
on Monday, May 22 2006
Sides React as XM Abandons WCS Acquisition
XM Satellite Radio on Monday terminated its agreement to acquire WCS Wireless, a move that would've given the satellite radio company wireless spectrum licenses in certain geographic areas throughout the United States.
The acquisition was announced July 13, 2005, and at the time the parties expected to close their transaction by this time, with the timing dependent on receipt of necessary government approvals. XM said the companies agreed to terminate the acquisition deal in order to free WCS to pursue other alternatives for its spectrum licenses.
Said XM Chairman Gary Parsons, "With the inability to obtain the necessary government approval for this transaction in a timely manner, WCS Wireless needed to pursue alternatives for its spectrum with greater certainty of regulatory approval."
Broadcasters, which had feared the WCS acquisition would bolster XM's local programming efforts, were elated with the news.
Said National Association of Broadcasters spokesman Dennis Wharton, "NAB is obviously pleased to learn that XM has dropped plans to buy WCS Wireless. We have long been concerned that the two satellite radio companies are circumventing their commitment to provide national service with local program initiatives. NAB continues to support legislation that would hold both XM and Sirius accountable to and in compliance with the FCC licenses they were granted."
More Litigation Facing Satellite Radio Company
Litigation pitting shareholders against the nation's biggest satellite radio service continued to surface this week, with the latest targeting XM in U.S. District Court in Washington, D.C.
The suit, filed by the law firm of Glancy, Binkow and Goldberg, seeks class action status, and joins a slate of other suits filed against the company. The D.C. suit involves persons or entities that acquired XM's common stock between July 28, 2005, and Feb. 15, 2006.
The complaint alleges XM violated federal securities laws after it reportedly made material omissions in reports and disseminated materially false and misleading statements concerning operations. That caused the company's stock price to become artificially inflated, alleged the suit.
As of press time, the company had no response to the suit.
Similar suits have been filed against the company, including in U.S. District Court in New York.
Does HDTV Matter Yet?
Is satellite TV enjoying its high-def leadership at the expense of cable?
DBS operators and their HDTV offerings may be providing the satellite-based platforms a competitive advantage when compared to cable's high-def slate, some have suggested. But for one analyst, Doug Shapiro of Bank of America Securities, cable doesn't have a lot to worry about - at least short-term - when it comes to HD competition.
In a research note released Monday, Shapiro said consumers haven't fully embraced subscription HD packages, with only 25 percent to 50 percent of homes with HD-compatible sets subscribing to a high def package.
Shapiro added, "Not much has changed the cable/DBS competitive dynamic in the last six years and specifically there is no evidence that cable's substantial advantage in local HD since 2003 helped it gain any subs."
The analyst also pointed out the limited HD programming available today.
"We tally only 32 HD networks available today in most markets, which most cable operators could handle now, and estimate that will only grow to 50 within the next few years," he said. "And much of the programming that has yet to be broadcast in HD is unlikely to be a swing factor in the consumer decision process."
Shapiro said the cable business has the flexibility to continue increasing capacity at relatively low cost, and switching to technology that can support HDTV could become "a particularly powerful tool," he added.
Sky HD Launches This Week
British Sky Broadcasting is launching high-def services this week, and details about the much-anticipated debut of Sky HD and what it will offer can be found in this week's BRIDGE.
Also, a glimpse into the Sky HD campaign can be found at: Sky HD Star Wars April 2006.mpg.
According to press reports, Sky will begin installing its first HD boxes this week after taking 40,000 advance orders from customers during the first three weeks of booking. A big draw to the service will be the company's delivery of World Cup soccer in high-def. Those games begin in June.
NEWS BRIEFS: WildBlue Extends Free Installs
WildBlue said it will extend the free installation offer for its satellite broadband service for one additional month, through June 30. Monthly fees for the service begin selling at $49.95 a month, and WildBlue equipment is available for $299. Installation normally runs $179.95.
TECHNOLOGY: Curtin Wins Honor - Denis Curtin, chief operating officer of XTAR, was named the 2006 recipient of the American Institute of Aeronautics and Astronautics (AIAA) Aerospace Communications Award, presented for outstanding contributions in the field of aerospace communications. The award will be presented to Curtin next month at the 24th AIAA International Communications Satellite Systems Conference (ICSSC) in San Diego.
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XM Responds to Recording Industry Lawsuit & EchoStar Wins One, Loses One on FCC Carriage Disputes & DISH Launches More Local HD -- Posted by soullezz
on Wednesday, May 17 2006
XM Responds to Recording Industry Lawsuit
XM Satellite Radio on Wednesday responded to a lawsuit filed against the company by the recording industry that takes aim at a product designed to record music delivered by the satellite radio service.
The Recording Industry Association of America, which counts as members major labels such as Universal Music Group, Warner Music Group, EMI and Sony BMG, filed the suit late Tuesday in New York federal court. The litigation accuses XM of "massive wholesale infringement," and seeks $150,000 in damages for every song copied by XM customers using the device, which went on sale earlier this month.
The litigation involves the Pioneer Inno XM2go radio.
"These are legal devices that allow consumers to listen to and record radio just as the law has allowed for decades," the company said in a statement. "The music labels are trying to stifle innovation, limit consumer choice and roll back consumers' rights to record content for their personal use."
XM also claimed the suit "is a negotiating tactic on the part of the labels to gain an advantage in our private business discussions." The company said it's the largest single payer of digital music broadcast royalties, and royalties paid by XM go to the music industry and benefit artists directly.
XM said it will "vigorously defend this lawsuit on behalf of consumers."
The lawsuit, combined with a tough day on Wall Street, sent XM shares down more than 5 percent to $16.62. That represents a new 52-week low for the stock.
Shares in Sirius also fell, by more than 4 percent to $4.02, also a 52-week low for the stock.
EchoStar Wins One, Loses One on FCC Carriage Disputes
Sometimes you win some and you lose some. And that's true for EchoStar concerning a TV station carriage skirmish at the Portals.
This week, the Media Bureau at the Federal Communications Commission granted one complaint and dismissed another in a must-carry dispute tied to the satellite TV company. The stations involved are KBEO in Jackson, Wyo., (which lost its complaint) and KPIF in Pocatello, Idaho (which won a favorable ruling).
KM Television is the licensee of both stations.
In its decisions, the bureau said KPIF - despite operating pursuant to a program test authority - is entitled to mandatory carriage rights. Also, KPIF's absence from Nielsen databases in 2004 does not pose a barrier to carriage by the satellite TV company, the FCC said.
As for the KBEO complaint, the FCC pointed out that the Wyoming station is off the air and could remain so until August. Also, the station is not listed in Nielsen publications for its market. And while that alone is not enough to deny carriage, the commission said satellite TV services are entitled to a "measure of certainty" when allocating resources to TV station carriage.
DISH Launches More Local HD
A day after DirecTV launched local high-def channels in four markets, EchoStar's DISH Network announced additions to its local HD slate.
On Wednesday, DISH launched local HD channels in the following 11 cities: Dallas, Houston, Miami, Phoenix, Portland, Ore., Sacramento, San Antonio, San Diego, San Francisco, Seattle, and Spokane.
The service now offers local HD channels to customers in 24 cities.
EchoStar said it has plans to launch high def local channels in additional cities across the country, reaching more than 50 percent of U.S. TV households with local HD channels by year-end.
as seen skyreport
DirecTV Leads Pay-TV Pack in Survey & Four New HD Markets for DBS Giant & Hughes Communications Reports 1Q -- Posted by soullezz
on Wednesday, May 17 2006
DirecTV Leads Pay-TV Pack in Survey
Pay-TV services saw some improvement in their scores in the American Customer Satisfaction Index, released Tuesday by the University of Michigan's Ross School of Business. But the survey also suggested there's room for improvement.
The "ASCI" said scores for cable and satellite TV increased 3 percent to 63, improving for the first time since debuting on the index in 2001. The cable industry has been a poor performer in the past, index authors said, "with rate hikes more consistent than service." But the bundling of services is improving the perceived customer benefit in the form of price savings and a single vendor, they added.
Yet, even with the improvements, cable and satellite TV still lag among the poorest scoring industries measured by the index, those with the survey said.
DirecTV led all pay-TV services with a 6 percent improvement to 71, the highest score in the sector, ASCI said.
John Suranyi, president of DirecTV sales and service, said the company's top score "demonstrates a continuing commitment by all DirecTV employees to provide our 15.4 million customers with the best television entertainment experience, backed by strong service. While we scored considerably higher than our competitors and pulled up the industry average from last year, we will continue improving our service until we reach 100 percent customer satisfaction."
Cox earned the title of highest scoring phone service at 76.
"Cable companies scored better in the telecom category than in subscription television service category," said Professor Claes Fornell, head of the ACSI at the University of Michigan. "I expect customer satisfaction to improve in the cable and satellite industry should competition from the major telcos proliferate in the market place."
Four New HD Markets for DBS Giant
Beginning today, DirecTV is offering local high-def channels to customers in four new markets: Milwaukee, Phoenix, Salt Lake and St. Louis.
DirecTV's roll out of local HD channels is part of a nationwide expansion of HD programming that will culminate in 2007, when the satellite TV service will have the ability to deliver more than 1,500 local HD channels and more than 150 national HD channels.
DirecTV offers local HD channels in 24 cities with plans to launch an additional 26 cities later this year, which will cover more than 65 percent of U.S. television households.
Hughes Communications Reports 1Q
This week, Hughes Communications released first quarter results, its first reporting of financials as a publicly-traded company.
First quarter revenues for Hughes wholly-owned subsidiary HNS were $196.8 million, representing an increase of $18.6 million when compared to revenues of $178.2 million recorded during the same period in 2005. Net income improved by $14.6 million to $194,000 during the first quarter, when compared to a loss of $14.4 million for the same period last year.
Said Grant Barber, Hughes' chief financial officer, "We are pleased with the solid operating results posted in this quarter. In addition, our successful closing of $450 million of senior unsecured notes in early April, allowed us to retire our bank debt of $325 million." He added, "We are confident that, due to these actions, we now have a strong balance sheet with the resources available for us to pursue appropriate strategic initiatives, including Spaceway."
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EchoStar XI Ready to Fly in 2007 & AT&T to Sell WildBlue & Dominion Opens Call Center, Plans Further Expansion -- Posted by soullezz
on Monday, May 8 2006
EchoStar XI Ready to Fly in 2007
Sea Launch said it signed a contract with EchoStar for the launch of the EchoStar XI satellite in 2007.
The flight will be Sea Launch's third mission with one of the DBS company's spacecraft, having launched EchoStar IX in August 2003 and EchoStar X in February 2006.
EchoStar XI, being constructed by Space Systems/Loral, will have a Ku-Band payload that will provide service and additional capacity for EchoStar's DISH Network customers.
Said Rob Peckham, interim president and general manager for Sea Launch, "This new contract serves to reinforce our long-term relationship with EchoStar and with Space Systems/Loral. We intend to follow through with another successful mission, responding to their confidence in our launch system and our team."
AT&T to Sell WildBlue
WildBlue Communications signed a non-exclusive agreement with AT&T in which the telco will sell the satellite broadband service.
Through the agreement, AT&T will sell WildBlue's service later in the month, under the brand name "AT&T High Speed Internet Access, powered by WildBlue." WildBlue will provide equipment management, installation and distribution services to AT&T for its satellite service customers.
AT&T said it would announce further details and ordering information on the service later this month.
The WildBlue service will continue to be available through participating National Rural Telecommunications Cooperative members, retail dealers and directly from WildBlue.
Dominion Opens Call Center, Plans Further Expansion
Dominion Video Satellite, owner and operator of the Christian/family-oriented Sky Angel satellite TV service, opened a new call center in Cleveland, Tenn.
The company also announced plans for a network operations center that will be built during the next several months in the southeastern Tennessee area.
The new Sky Angel call center and network operations center will account for nearly 50 new jobs initially and are expected to eventually create more than 200 new jobs for the Bradley County, Tenn., area during the next several years, the company said. The new call center is located at the Life Care Centers of America's Campbell Center
Sky Angel officials said they had been looking for more than a year at sites where it could establish a second call center and a facility for its technical operations. Dominion has executed a purchase agreement for 20 acres near its call center for its network operations center. The company said it expects to close on the property in the very near future.
"Expanding Sky Angel's call center operations to Cleveland and relocating the company's network operations center there provides Sky Angel with a number of financial and operational advantages and access to a very qualified and motivated workforce that shares our values," said Tom Scott, Dominion's president and CEO. Sky Angel will continue to maintain its corporate headquarters, including administrative offices and a call center, in Naples, Fla.
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After Reporting 1Q, DirecTV Eyes HD & ExpressVu Keeps Growing -- Posted by soullezz
on Friday, May 5 2006
After Reporting 1Q, DirecTV Eyes HD
Tighter credit checks on potential new customers led to lower subscriber additions for DirecTV during the first quarter, but the satellite TV company also posted a profit for the three-month period.
DirecTV's first quarter gross subscriber additions numbered 919,000, representing a decrease of 19 percent when compared to first quarter 2005. The lower gross customer additions were attributed to revised credit policies and retailer incentives aimed at improving the quality of new subscriber additions, the company said.
After accounting for average monthly churn of 1.45 percent for the period, DirecTV added 255,000 net subscribers during the three-month period. That takes the company's customer total to 15.39 million.
As for financials, DirecTV's first quarter revenues increased 8 percent to $3.39 billion. Net income of $235 million for the period was an improvement from a net loss of $41 million reported for first quarter 2005.
DirecTV CEO Chase Carey said the company didn't hit targets on a few items, including subscriber acquisition costs (SAC) that were about $10 to $15 higher than expected. The higher SAC, which came in at $668, was attributed to higher costs tied to the company's new DVR and HD receivers.
During a conference call, Carey stressed DirecTV came in with a strong quarter, saying that netting a "quarter a million subscribers is a pretty healthy growth rate."
Looking ahead, the company will concentrate on its roll out of its high-def programming, which Carey said "will play an increasingly important role in DirecTV's competitive strength and future growth."
By the end of the year the company expects to have HD local channels available to about three-quarters of all households, the CEO said. "And after the launch of our two remaining HD satellites next year, we expect to have the most comprehensive and compelling offering of HD programming for nearly every home in America," Carey said.
ExpressVu Keeps Growing
BCE Inc., the Canadian telecommunications giant that controls north of the border satellite TV service Bell ExpressVu, said the DBS platform continues to grow as well as demonstrate strong financial results.
The company said Bell ExpressVu achieved 25 percent revenue growth during the first quarter. Also, ARPU (average revenue per unit - or subscriber) jumped by $5, which BCE said reflected sales efforts to upsell services such as premium programming to customers.
Bell ExpressVu added 12,000 customers during the first quarter, taking its total to 1.739 million. Also, BCE said churn for the satellite TV service remains low, at 0.9 percent per month.
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