Television broadcasters claimed a major victory when the Supreme Court, in a 5-4 decision, upheld the federal government's must-carry law requiring cable operators to devote up to a third of their channels to local public and private stations. Reportedly, Justice Anthony Kennedy writing for the high court, said must-carry is consistent with the First Amendment and promotes "important" government interests. Some legal experts were surprised by this decision which upholds a ruling by federal appeals judges that must-carry provisions in the 1992 cable law do not violate the industry's free-speech rights.
This decision was opposed and criticized by some in the cable industry. Remarks were made stating cable companies have offered a wide selection of local channels "even prior to must-carry." Cable systems and cable networks should have full First Amendment rights - and hope that the courts will someday reach that conclusion. Others commented that the Supreme Court in its ruling "would defer to the judgment of Congress as to whether the rules were necessary, and whether they were burdensome, based on the notion that the infringement on cable operator's (and programmers) First Amendment rights was content neutral and, therefore, not subject to 'strict scrutiny' by the court." The cable industry are also awaiting a decision requiring competing services, such as DBS, to have to abide by the same rules as they have to.
Broadcasters, on the other hand praised the ruling, stating that local television stations have been given the cable carriage assurance they need to ensure that the U.S. system of universal broadcasting will remain the envy of the world. This ruling is a resounding acknowledgment of the vital role played by broadcast television station operators in providing free programming to the people of the United States. Must carry will allow us to continue our plan of growing our group of nationwide television stations and fulfilling our obligations to both our viewers and our shareholders.
According to reports General Instrument announced 4DTV's roll-out at the SBCA show in Las Vegas last month. Within weeks, GI's NextLevel should start shipping and is hoping the receiver and accompanying equipment will turn around a slump for the traditional dish, which lost more than 40,000 subscribers since the beginning of the year. GI and retailers also hope the receiver, which can be added to existing C-Band equipment, will boost sales. According to reports, this new receiver will cost around $1,000 and according to NextLevel, roll-out will begin slowly until a test market can be established for full roll-out.
To help boost the roll out, GI signed on DSI Distributing and Diamond Pacific to distribute 4DTV along with Consumer Satellite Systems who has also agreed to distribute the new equipment. 4DTV owners will be offered Music Choice audio selections along with pay-per-view and other channels, like HBO, Showtime, and CourTv.
All cable television operators, beginning May 18, must either scramble adult offerings or place programming into the "Safe Harbor" hours of 10 p.m. to 6 a.m., according to guidelines handed down by the Federal Communications Commission recently.
The requirements have been fought by two adult-oriented programmers - Playboy and Spice Entertainment - since mandates were put in place. Both attempted to get the rules overturned in court.
The Mexican government is expected to begin selling off the nation's fixed satellites, Morelos II and Solidaridad I and II, through a public stock offering, according to officials with the country's Communication and Transport Ministry. Part of the effort includes creating a new company to selling shares by May.
Morelos II will need to be replaced by 1998, with a contract for the new satellite awarded to Hughes Communications International. The government will retain oversight over satellite communications, their orbital slots and orbital frequencies. In addition, future satellites, related ground infrastructure and orbital locations are expected to be auctioned off.
According to the Wall Street Journal recently, News Corp.'s Rupert Murdoch has been aggressively lobbying Congress to get changes in a copyright law that will allow him to proceed with the Sky/EchoStar venture. Murdoch was hoping to race the measure through Congress as part of a spending bill, getting the legislation past potentially lengthy reviews by congressional panels. Murdoch needs permission to beam local television station signals over the planned Sky service. According to reports, Murdoch's plan was received with numerous objections, especially from the cable industry lobbyists who, after the hearing, addressed Capitol Hill urging lawmakers not to go along with the plans. House Commerce Committee Chairman and House Appropriations Committee Chairman both objected due to controversial issues. The Senate also objected, claiming the attachment to a spending bill was unorthodox. Murdoch said he is willing to go through the normal channels. "We believe there will be hearings now in the House, and welcome any hearings to discuss this and talk it out."
According to a recent report, Tee-Comm Electronics has abandoned an effort to raise 100 million Canadian dollars (U.S. $71 million) through a debt offering. The company, based out of Milton, Ontario, recently announced that the Bank of Montreal has extended the company's operating credit line. Tee-Comm Electronics remains confident that it can raise the much-needed cash to stay afloat until its AlphaStar DTH satellite service in the United States and Canada breaks even at 500,000 subscribers. AlphaStar subscribers in both countries currently represent about 10 percent of that break-even target.
Disney Channel Home Satellite Services introduced a Disney Deluxe C-Band programming package offering up to 48 channels and 54 feeds for $29.95 monthly, $89.85 quarterly or $299.40 annually. Among the 48 services in Disney Satellite Deluxe is The Disney Channel and recent launches such as MSNBC, ESPNews and CNN/Si. Customers also can subscriber to a la carte services from Disney Channel Home Satellite Services' expanded lineup, which includes the Golf Channel, SportsChannel and Starz! Movie Pak. Other channel offerings include CNN and Turner networks, MTV and Nickelodeon, The Discovery Channel, USA Network and the Sci-Fi Channel.
IBM recently unveiled a set-top box design kit that combines hardware and software components into one package. According to IBM, the integrated design is the first step in the company's plan to develop a custom chip that blends set-top box functions on a single sliver of silicon. The new set-top box design kit, and ultimately the single-chip solution, will be sold to equipment manufacturers who will add their own customized functions.
According to IBM the digital pay-TV receiver works with cable television systems or satellite services such as EchoStar's DISH Network, AlphaStar and Canal+ in Europe. Major consumer electronics manufacturers, such as Thomson Consumer Electronics and Tatung Co., have already selected various IBM solutions based on PowerPC chips to power their upcoming line of set-top boxes.
Ottawa has approved Telesat's plan to build a new high-powered Canadian direct broadcast satellite (DBS). Telesat's plan, developed in co-operation with Spar Aerospace, is to build a high-powered 32-transponder DBS satellite and place it at 91 degrees west. The satellite could be in service as soon as the fourth quarter of 1998. Most, if not all, Canadian DTH programmers would then use this satellite.
California Microwave's Satellite Transmission Systems division won a $2.4 million contract from Tee-Comm Electronics' AlphaStar Television Network. STS will supply a satellite communications earth station uplink facility for direct-to-home video broadcast service from the AlphaStar facility located in Oxford, Conn.
According to a recent story in USA Today, News Corp. was reportedly considering Primestar as an alternative partner instead of its $1.7 billion venture with EchoStar Communications. Both News Corp. and EchoStar deny any such deal, according to a release from EchoStar which stated that the company has a binding agreement with News Corp. "The company expects the transaction to proceed in accordance with the agreement."
News Corp.'s Preston Padden was quoted in the paper denying the speculation, "This is somebody's fantasy," he reportedly said. News Corp. Chief Executive Rupert Murdoch reportedly approached Tele-Communications Inc. CEO John Malone about an alternative, the USA Today story said. According to reports, under the prospective deal, the companies would offer News Corp.'s cable services to more of their customers, including fX and the Fox News Channel.
Microspace Communications acquired a third transponder on the Hughes Galaxy IV satellite, new capacity that will be used to support the company's growing data and audio satellite broadcast business.
Microspace provides via satellite business music and paging, financial and security industries. The company's network has grown to more than 225,000 customer locations worldwide.