Posts Tagged ‘dish network’

No Free Speech or Paids Ads in Russia

Wednesday, July 16th, 2014

The remnants of totalitarian communism in Russia refuses to go away. Putin’s mafia-style government first tried to take down the satellite TV signal of Dozhd, one of the few remaining independent channels. The channel is available via Yamal 300K, Eutelsat 36B, Astra 4A, and Dish Network in the U.S. (via Anik F3).

Now the government wants to ban advertising on any channel beside FTA television, most of which is state-owned or controlled. Removing one of the main sources of revenue is their way of putting them out of business.

Dozens of small and independent Russian television stations could face closure after lawmakers approved a controversial bill banning advertising on cable and satellite channels.

The proposal would also consolidate state-controlled channels’ dominance of the advertisement market.

The surprise bill raced through Russia’s State Duma, the lower house of parliament, last week, sailing through its three compulsory readings in just two sessions.

Excluded from the ban are “national, compulsory, universally accessible” channels and those conveyed by terrestrial broadcasting — meaning all the state-controlled channels that currently dominate Russian television.

Advocates say the new law aims to end unfair competition on the television market, where pay channels supposedly benefit from mixed funding schemes — subscription fees and advertising — while free broadcast channels are limited to commercials.

But the heads of 15 pay channels, including Natalya Sindeyeva of opposition-leaning Dozhd TV, have written a letter to the government warning that the ban will sound the death knell for more than half of Russia’s cable and satellite channels.

“Excluding the advertising model could place about 150 thematic pay channels on the brink of survival,” the letter says. “Raising payments for television services may lead to understandable customer dissatisfaction.”

The signatories also warn that the new law will hurt small and medium-sized businesses currently advertising on pay channels since “only big-business representatives can afford advertising on federal channels.”

Read the letter in Russian here. Behold the quick translation into English…

From an article in the newspaper “Kommersant” from 26/06/14, we were surprised to learn that in the State Duma in an expedited manner planned to adopt a package of amendments to the “Law on Advertising.” Our keen interest aroused amendment prohibiting advertising on pay channels. We believe that consideration of this amendment, the State Duma of the Russian Federation should take into account the following circumstances:

1. Absolutely no obvious reason why television channels necessary in law to impose a particular model in the market. We believe that any TV channel can select or advertising model, or paid, or mixed. The choice of a model should be determined solely by market mechanisms rather than the provisions of the legislation. According to our information the absence of such legislative restrictions characteristic of the vast majority of countries around the world.

2. Most pay-TV channels now uses both models of monetization of their business – and advertising and paid. Exception advertising model will deliver about 150 paid thematic channels on the brink of survival. It is possible, the financial burden will be shifted to the subscribers. Services of the largest Russian operators used by tens of millions of Russian citizens. Increased pay for TV service can lead to understandable frustration consumers.

3. Please note that the central channels of essential federal campaigns can afford only representatives of big business. For medium and small business advertising on such channels is not available due to its high cost. But representatives of small and medium businesses can promote on the Russian market their products and services by means of pay-TV channels. They can appeal to the audience of thematic channels, which are most likely to consume their product or service at feasible prices for their business. Ban such advertising can lead to a significant delay in the development of small and medium-sized businesses in our country. We believe that this provision of the legislation is contrary to public policy to support small and medium-sized businesses.

Appeal with the proposal to postpone consideration of this amendment in the spring session of the State Duma. Propose to discuss the amendment with the business community, and nominate it for discussion by the State Duma in view of his opinions.

This is ridiculous, yet typical of Putin’s stupidity. Gutting the Russian economy is obviously not a consideration.

People will find want they want from other sources: the truth.


20 Years of DBS

Wednesday, June 25th, 2014

Twenty years ago, the first direct-broadcast satellite system was sold in Jackson, Mississippi, at Cowboy Malone’s Electric City. They probably sell quite a few today, too.

The business has transformed itself into a competitive alternative to cable and currently counts more than 34 million subscribers (DirecTV & Dish combined). You could, however, argue there was a TVRO service for years, and PrimeStar goes back to 1991.


Spectrum & Bankruptcy

Wednesday, May 7th, 2014

FightSquared is about to be resolved.

After “lawyering up” for the last few years, here comes the judge. She suggested everybody coffee-up for Thursday’s hearing.

Don’t call him “Nixon,” as Charlie seldom ever loses a hand in this game.

Here’s the latest tit-for-tat, via The Deal Pipeline

“Mr. Ergen’s testimony cannot be believed,” said debtor counsel Andrew Leblanc of Milbank, Tweed, Hadley & McCloy LLP.

Dish Network Corp. chairman Ergen, who holds more than $1 billion in secured claims including interest, is the sole objector to the reorganization of Philip Falcone-backed LightSquared.

Leblanc told the court that Ergen impeached himself 27 times during testimony earlier in 2014 by disagreeing with his deposition before the trial.

LightSquared and supporting creditors are trying to convince Judge Shelley Chapman of the U.S. Bankruptcy Court for the Southern District in New York that the debtor should be able to give Ergen different compensation for his secured claims than other creditors holding secured debt. The plan supporters also want Chapman to designate, or disqualify, Ergen’s vote.

The debtor plans to repay Ergen’s first-lien debt with a third-lien note that would not pay cash for seven years, unless it were refinanced. Other secured creditors would receive cash payments in full shortly after confirmation of the plan.

Ergen’s counsel, Rachel Strickland of Willkie Farr & Gallagher LLP, called the plan “totally unjust and in violation of the [Bankruptcy] Code,” in court Monday.

LightSquared sought Chapter 11 protection two years ago. The debtor was unable to fund its business when the Federal Communications Commission withdrew support for a proposal that would allow LightSquared to use is spectrum — which is licensed for hybrid satellite-terrestrial service — for wholesale wireless broadband service.

The confirmation hearing has focused as much on Ergen’s alleged misdeeds as it has on the plan supported by Fortress Investment Group, Melody Capital Advisors LLC, Philip Falcone’s Harbinger Capital Partners LLC and JPMorgan Chase & Co.

LightSquared argues that the plan, which incorporates $2.65 billion in new financing, compensates all creditors fully and fairly.

Ergen’s lawyers told Chapman that the debtors are buying the votes of junior classes by giving them better treatment than the Dish chairman. “They are patting themselves on the back for get a fully consensual plan?” Strickland asked the court. “They are trying to work around the [Bankruptcy] Code.”

Strickland called the effort to divide the secured debt into two classes a “completely unprecedented maneuver.”

LightSquared and creditors argue that Ergen violated a credit agreement by purchasing the claims, because terms of the loan blocked competitors such as Dish from purchasing the debt.

The debtor also accuses Ergen of disrupting its reorganization, and notes that another judge in the Southern District of New York designated Dish’s vote in the reorganization of DBSD North America Inc. Dish wound up buying the satellite communications company.

Dish offered $2.22 billion to purchase LightSquared’s most attractive portfolio of wireless licenses last year. LightSquared said the offer undervalued the debtor, though a group of secured creditors proposed a reorganization of a unit of the company built around Ergen’s offer.

Dish withdrew the bid in January, after termination dates for the deal passed. Chapman ruled that the company had the legal right to terminate.

LightSquared has negligible operations. The value of the debtor’s estates lies in its spectrum, and will swing widely depending on the FCC’s ruling on licensing.

Leblanc told Chapman that Ergen plays “the long game,” and would attempt to buy the company on the cheap if he could disrupt the reorganization plan. The lawyer noted that Dish’s purchase of DBSD played out over a long period, and predicted that the satellite TV company still has an interest in LightSquared and its wireless spectrum.

Know when to hold em, know when to fold em.


Satcom: We Don’t Suck

Tuesday, November 5th, 2013

sat_chart

For years, Internet by satellite was deemed “acceptable” by those who couldn’t get broadband by other means. Satellite operators have known for 20+ years that Ka-band was good for data, but nobody had the balls to really make a financial and operational commitment toward achieving commercial and/or technical success. Hughes, Starband, Wildblue and a host of 2nd and 3rd tier resellers tried to make a go of it, but nobody could get the cost of satellite bandwidth down to a workable level.

When satellite operators are getting 80% EBITDA margins from video distribution, why bother?

ViaSat set out to change perceptions by working the technology to make it work. They’re winning.

Mark Fidelman put together a solid piece in Forbes last week that should have been written 15 years ago — if big satcom walked the talk back then. He sat down with ViaSat CEO Dankberg and got into the details:

Most people would assume that the bandwidth issues will forever limit the size of the satellite communications market, but I’d hold off on that assumption. Dankberg explained that current satellite systems are manufactured by different vendors that build to the lowest common technical denominator. The three primary components, the satellite, the ground systems and the satellite communications service providers are all different vendors with different priorities. Which means that the entire communication system is not optimized. These systems are like a large truck with a lawn mower engine meant for a race car driver.

“So what we’ve done is developed all three of those areas. We build the ground system, we design the satellites and we operate them, so we know what we need,” Dankberg explained, “Since we are the architect of all three, we can completely integrate and optimize the system.”

Dankberg told me that ViaSat-1 used existing space components, and sub-systems, but that ViaSat-2 will have a better design and thus optimized architecture. He believes it will be twice as fast as ViaSat-1 which means it will provide even greater competition with high speed cable and DSL providers.

That means anyone anywhere could have their own high speed communications antenna. Essentially filling the gaps that current providers can’t fill due to regulatory or terrestrial issues. Yes satellite communication technology still operates on higher frequencies which don’t propagate walls very well. But Dankberg says in those situations antennas on cars, busses, trains, homes and commercial buildings will convert the signal to lower frequency Wi-Fi which is better able to penetrate the interiors of buildings.

Has anyone noticed that when you need higher bandwidth the most, it never seems to be available? I’m thinking about those situations where streaming video, uploading and downloading media are essential but are slow due to network congestion. Dankberg’s solution was to develop a type of artificial intelligence: “One of the things we did to make our network faster is develop software to figure out what you are doing, and deliver it faster that you otherwise would get -because we can anticipate what you’re going to do,” Dankberg said.

Satellite’s gotten such a bad rap that Exede partner Dish Network barely mentions the word on its website. And not at all in TV spots…

Mark Dankberg and his team are real innovators and us rocket scientists are glad to see this part of his business meet real success.


Give The People What They Want

Tuesday, September 17th, 2013

Interesting piece in The Drum on how Netflix does their research…

Vice president of content acquisition for Netflix, Kelly Merryman, revealed this week that the company she works for routinely use piracy sites to determine what television shows the company will buy. By gauging the popularity of shows on sites like The Pirate Bay, the company is able to determine which shows are really popular and help assist in making licensing decisions.

That’s brilliant. And it seems to be working well. The article goes on to cite “BitTorrent traffic in Canada dropped 50% after Netflix started there three years ago.” Their market skews younger, and they’re far more likely to be “cord-cutters” and view their favorite video entertainment online. Pay TV’s base is eroding and they know it.

Surely it won’t be long before pay TV services — cable, satellite and fiber — finally get smart by offering real à la carte service and dispense with the increasingly-annoying table d’hôte way of doing business. Their customers don’t want 15 shopping channels or 12 faith-based networks. They want CNN, The Weather Channel, ESPN and The Food Network — and maybe some locals. Offering packages of 200 channels for a fixed price is getting old.

Watch this video edit (4:55 RT) of actor Kevin Spacey speaking at the James MacTaggart Memorial Lecture at the Edinburgh Television Festival last month. He concludes content should be served/offered any way the customer wants it — movie theater, TV screen, iPad, streamed, iPhone et. al.

Here’s the full video (46:01 RT). Either one will lead you agree with his conclusion.

UPDATE: this report from Ian King of Bloomberg really gets into the details…

…a generation of technology-savvy, budget-conscious consumers who are taking advantage of the availability of high-speed Internet connections and the proliferation of smartphones, tablets, lower-cost TVs and other gadgets that make it easy to consume downloadable shows in a snap.

The shift in viewing habits is putting pressure on cable, satellite and phone companies by pinching subscriber numbers, which may have a knock-on effect on revenue growth. The impact on the $80 billion pay-TV industry is already being felt, with 2013 on pace to be the first year ever that total U.S. pay-TV subscriptions will decline, falling to 100.8 million from 100.9 million last year, according to researcher IHS.

And while 3.2 million new U.S. households were set up in the last three years, the paid-TV industry only added 250,000 subscriptions in that same period, according to market-researcher SNL Kagan.

Shopper, Hopper, Topper!

Friday, September 28th, 2012

Sports. Lots of people like watching it live because the outcome is unknown. Movies and TV series can have predictable outcomes, and news network can be a bore to some. The major sport leagues know this to be true. So do the broadcasters who carry them. They get advertising revenues, and those on pay-tv services get additional revenue from subscriber fees.

Sports continues to be the driver for moving HDTVs into many homes in America. And for cable and satellite companies. I’ve gone from cable to satellite to cable again, and now I’m set with DISH Network. I refuse to pay Jimmy Dolan $78 per month for a basic cable package, so I’m sticking with Charlie. But I still have to choose between channel packages/bundles. Which doesn’t include AMC or MSG. Let them fight it out.

Sure, I can edit the channels I surf, but why must I pay for 20 shopping channels? Some people say the same for sports channels. Charlie’s mother doesn’t watch sports, so why can’t we just pick and choose the channels we want to watch — and pay only for those. DISH Network’s Hopper STB lets viewer skip ads, so why not let subscribers get only channels they want? How about an “over the top” service via the Internet?

Yeah, here it comes — millions are ready to make the switch. The report, via Ad Age

Dish Network is talking to networks such as Viacom’s MTV about offering their channels over the internet, a service that could shift the economics of the pay-TV industry, five people familiar with the plan said.

In addition to Viacom, the negotiations involve the Spanish-language broadcaster Univision Communications and Scripps Networks Interactive, owner of the Food Network and HGTV, said the people, who asked not to be named because the talks are private. The companies would offer an online product known as an over-the-top service, charging a lower price for a smaller bundle of channels viewable on a computer or tablet.

Dish’s service would change the dynamics of the pay-TV business, whereby customers are forced to pay for bundles with channels they don’t watch. It also gives Dish a way to avoid its biggest programming expense: sports. Walt Disney Co.’s ESPN gets as much as $5.13 each month for every cable and satellite subscriber, compared with the industry’s average of 26 cents, according to SNL Kagan.

“That’s when you could start seeing a few cracks in the ecosystem,” said Alan Gould, a media analyst at Evercore Partners. “The addition of an over-the-top service would be significant.”

The effort would mark the biggest attempt to create an online service with live cable channels, a break from the approach taken by Netflix and Hulu. For Dish, the move would decrease its reliance on its satellite-TV service, which ranks second to DirecTV in U.S. customers. This also gives it a way to undercut pay-TV competitors on price.

Cable networks, meanwhile, have been reluctant to break up their suite of channels and sell them a la carte because it would lower the amount of available advertising inventory. Viacom and other cable networks typically sell ads at a lower rate than the big broadcast networks such as CBS Corp., so they rely on volume.

Viacom would be willing to sell smaller bundles of its networks, which also include Nickelodeon and Comedy Central, at a higher rate per channel than it does for its full complement of programming, according to two executives familiar with the situation.

Spokesmen for Dish, Viacom, Scripps and Univision declined to comment.

A central question is whether consumers want smaller bundles that lack sports programming. Several pay-TV operators, including Dish and Time Warner Cable, already offer cheaper packages that don’t include sports. ESPN — admittedly a network with a horse in the race — says those offerings aren’t very popular. “History shows that very few households subscribe,” said Amy Phillips, a spokeswoman for ESPN, the biggest cable sports network.

Dish offers a $20-per-month satellite package without ESPN, though it also lacks other top channels such as MTV and HGTV. Cable and satellite companies’ agreements with ESPN typically require the video distributors to include the sports network in their most popular tier of TV service.

Dish Chairman Charlie Ergen, who co-founded the company, has said there will be a day when a pay-TV operator chooses not to include sports in order to charge $10 to $20 per month less than competitors.

“My mom doesn’t watch sports,” Mr. Ergen said during a conference call last month. “I’ve got neighbors who don’t want sports. I’ve got friends who go to the bars or the neighbors’ house to watch sports.”

Bring on the “DISH Topper!”

Not in Comcast’s Backyard

Thursday, February 16th, 2012

Section 207 of the Telecommunications Act of 1996 has been around for a while, obviously, but that hasn’t prevented the City of Philadelphia from passing a bill last fall to limit installation of satellite dishes. As Philly is Comcast’s corporate home, I’m not surprised.

It should come as no surprise that the SBCA is preventing the law’s enforcement, according to a report by the Philadelphia Daily News:

Enforcement of a bill passed by City Council last fall to regulate placement of TV satellite dishes has been stalled due to a petition filed with the Federal Communications Commission by the satellite-dish industry.

The Satellite Broadcasting and Communications Association is fighting the bill, approved in October and sponsored by current Council President Darrell Clarke, prohibiting satellite-dish companies and installers from placing dishes at the front of homes unless putting them elsewhere would cause signal reduction or significant extra cost.

A petition filed in November by the association, and pending before the FCC, alleges that the bill violates a 1996 over-the-air reception-device rule that blocks restrictions of satellite-dish installations without a public-safety concern or historic-preservation justification.

“We feel that it isn’t just a matter of taste, but a matter of fairness,” said Lisa McCabe, the association’s director of public policy and outreach. “It’s a burden. It would increase the costs of doing business in the city and would ultimately fall on the users.”

The city’s two major dish companies, DirecTV and Dish Network, argue that the city uses “aesthetic concerns as a pretext to restrict consumers’ access to satellite television.”

But the city disagrees.

“There’s no consideration,” said William Carter, Clarke’s director of legislative affairs. “We simply ask that they don’t do in our community what they wouldn’t do in theirs.

“We were noticing a disparity in areas of the city inundated with satellite dishes. You don’t see this in Chestnut Hill, Society Hill,” Carter said, adding that more dishes are seen in areas with more renters.

Philly has more than 100,000 dish users and was the first city to pass such a measure.

Under the bill, dishes installed in the future must match the colors of homes, and hundreds of inactive dishes will be removed.

I doubt Philly will get its way. People simply refuse to pay higher rates for TV entertainment, and urban neighborhoods with a high concentration of new immigrants will always opt for satellite TV service and their international programming options. I’ve seen more satellite antennas in cities than ever before. You can’t argue with popular preference.

How about above-ground cables and wires strung from utility poles? Now that’s ugly!


Know When to Fold Em

Saturday, January 14th, 2012

It was in the cards. Keeping Blockbuster retail outlets open for video rentals is not a good business. The future, my boy, is “streaming.”

However, if you convert parts of the store into a Dish Network service center, you may have a really good proposition on your hands. Via Reuters

“We are committed to keeping the profitable stores open that are generating positive cash flow, but there are ones that aren’t going to make it,” Clayton said in an interview. “We will close unprofitable stores. We will close additional stores.”

Clayton would not give a time frame on the closings or say how many stores were currently unprofitable. Spokesman Marc Lumpkin said the closings will be on a “case by case” basis.

Clayton, who became CEO of Dish last year when billionaire Charlie Ergen stepped down to focus on Dish’s wireless strategy as chairman, said the stores that stay open will sell Dish subscriptions and may one day provide customer support for its television customers.

“If a consumer has a problem, just bring your box in and we’ll give you a new one so you don’t have to stay at home and wait for an installation,” he said.

Subscribers to Dish’s Latino service may also be able to pay their TV bills in stores in metropolitan markets, he added.

Dish has tried to tap the Blockbuster brand by unveiling a new Internet streaming service and a program to rent DVDs by mail, in a bid to challenge Netflix Inc.

If they buy Hulu and add wireless spectrum to serve their streaming business, Dish Network can be very well positioned in remaining a good business model.


“Get Charlie on the phone!”

Wednesday, December 21st, 2011

The barriers to entry into the satellite business are legendary, but I suppose you could pull it off if you have a really good business plan — and the right people to execute it. Sure, it would take a few years to get off the ground (pun intended).

However, it assumes you have what the whole business depends on: spectrum. That’s right, we’re talking about radio spectrum. Without that, you don’t have a business. Trouble is, spectrum is a scarce resource — there only so much to go around. Unlike time, which is the scarcest resource because you can’t make more of it, additional spectrum becomes available once the FCC (U.S.) or ITU (Globally) determines available spectrum is fully utilized. Or someone makes a business case, with supporting technology, for using new spectrum. Case in point: modern DBS services using the Ku-band. DirecTV and DISH Network are generating significant cash flow, they employ lots of people and serve millions with excellent TV services.

So what do you do will all that money besides reinvesting in your own business? You buy — or lease — more spectrum. Does it have to be satellite? No. Evidence abounds that the folks at DISH Network get it. Charlie’s been acquiring spectrum at a discount and now people are justifiably speculating that AT&T wants it — especially after the T-Mobile acquisition went kaput.

This isn’t a poker game — more like chess. Charlie’s a few moves ahead of us here, so you’ll likely see a few key moves in the coming days, weeks or months. AT&T may buy DISH Network. A partnership between DISH Network and T-Mobile is a real possibility.

AT&T still has tons of bandwidth around the country, but what good is that if you can’t get more wireless spectrum?

Remember the old adage “content is king?” Well, in the wireless business, “spectrum is king.”


QuetzSat Launch

Wednesday, September 28th, 2011

Convenient launch window for QuetzSat-1 launch on Friday, and you can watch it live from the Baikonur Cosmodrome via Proton/Briz-M on 29 September 2011 @ 18:32 GMT (00:32 a.m. local time on 30 September 2011; 20:32 p.m. CEST, 14:32 p.m. EDT).

In North America, DISH Network Channel 101, and via C-band on AMC-3 at 87 degrees West, C4, downlink frequency 3780.0 MHz, vertical polarization, service ID 136201.

In Europe, Astra 19.2 degrees East, transponder 1.037, downlink frequency 11023.25 MHz, horizontal polarization, symbol rate 22.0 MSym/s, FEC 5/6, service ID 5232, service name QuetzSat-1 Launch.

A webcast is available via ILS Launch, beginning 20 minutes prior to launch window opening.

Go QuetzSat. Go Proton.