Word: echostar
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...would also help compensate for a big Murdoch deal that seems to be falling apart: his joint venture with EchoStar to create a new satellite TV service called Sky. The service, announced with much fanfare in February, would beam 500 channels of digital programming to small home dishes. Because Murdoch's service would have the ability to deliver local over-the-air stations (which other satellite services cannot do), Sky could take significant numbers of customers away from cable. The prospect so alarmed rival media companies that they flooded Washington with lobbyists to try to stop Murdoch on regulatory grounds...
...while the lobbyists were making their rounds, EchoStar executives abruptly announced that negotiations with Murdoch had stalled, stymied by the media mogul's insistence that EchoStar switch to a Murdoch-approved descrambling technology. Some industry observers contend the technology issue is only a smoke screen for other problems faced by the venture. The deal was thrown further into doubt late last week when Preston Padden, Murdoch's top satellite executive, resigned, reportedly after clashing with EchoStar chairman Charles Ergen over control of the venture. "The EchoStar deal left me without a real job," Padden told TIME. "I have nothing...
...fledgling direct-broadcast satellite (DBS) industry, which delivers hundreds of channels and digital pictures from space, used to be a mosquito on the back of the elephant cable-TV business. Now it's starting to draw blood. In what could be the next long distance-style price war, upstart EchoStar Communications of Englewood, Colorado, began offering its 18-in. dish for $199--a third of the usual price--to buyers who spend about $25 a month on programming. Market leader DirecTV, owned by General Motors' Hughes Electronics, is freezing rates until the year 2000, and will probably cut the price...
...front (a $150 installation charge) since customers are allowed to lease rather than buy the dishes. Primestar, which has just completed going digital, is planning to launch a second satellite next year, which it promises will boost its capacity to 200-plus channels by mid-1996. A third company, EchoStar Communications, intends to launch its own satellite next year and promises a service that will eventually provide up to 250 channels...