DirecTV in the News

DirecTV Offers Local Channels in New York and Los Angeles

EL SEGUNDO, Calif.--(BUSINESS WIRE)-- Nov. 29, 1999--DIRECTV Inc., provider of the nation's leading digital television service, today announced the availability of local broadcast network channels via satellite for its DIRECTV� customers in New York and Los Angeles.

Beginning today, all DIRECTV customers in the New York designated market area (DMA) and Los Angeles DMA will receive a free preview of their local broadcast network channel package.

DIRECTV customers in the New York DMA can subscribe to a local channel package that includes WABC, WNBC, WCBS and WNYW (FOX). DIRECTV customers in the Los Angeles DMA who choose to subscribe to their local channel package will receive KABC, KCBS, KNBC and KTTV (FOX). DIRECTV customers can subscribe to their local channel package for $5.99 per month.

In addition to local broadcast network channels, a national PBS feed is included in each local channel package at no additional charge. DIRECTV will continue to add additional local markets throughout the remainder of 1999 and in 2000.

``The availability of local channels ushers in a new era for DIRECTV, and we are excited to commence our local channel offerings in the nation's two largest markets,'' said Eddy W. Hartenstein, president of DIRECTV. ``By offering local channels on DIRECTV, our customers can access entertainment and information that's most relevant to their lives -- and they can watch their local channels with digital picture and CD-quality sound.

``Now is as good a time as any for consumers in New York and Los Angeles to cut cable and choose DIRECTV as their source for home entertainment.''

Local channels are delivered to DIRECTV subscribers in New York and Los Angeles from DIRECTV's primary orbital slot at 101 degrees West Longitude. As a result, DIRECTV customers can receive their local channels as well as DIRECTV's current lineup of national digital entertainment and information programming through their existing set-top box and 18-inch satellite dish.

Clinton Signs Law to Put Local Stations on DirecTV

By Aaron Pressman

WASHINGTON, Nov 29 (Reuters) - President Bill Clinton on Monday signed into law a measure allowing satellite television services to offer their subscribers hundreds of local broadcast stations.

El Segundo, Calif.-based DirecTV, the market leader with 7.8 million customers, said it would offer immediately local channels in New York and Los Angeles, adding San Francisco, Washington D.C., Denver, Detroit and Miami soon.

By allowing satellite firms to carry local channels, the law aims to provide greater competition to land-based cable operators that already carry all local stations.

Consumer groups said the law could help curb cable service price increases that have run at more than three times the rate of inflation in recent years. But they also warned that some provisions of the law added at the behest of television station owners could hold back the competitive benefits.

While the law allows satellite firms to carry local channels immediately, the companies must negotiate terms with stations owners within six months.

Cable operators generally pay little to nothing to station owners, but the broadcasters have greater leverage with satellite firms that control much less of the audience in most markets.

Lawmakers considered but rejected a provision that would have prohibited station owners from charging satellite companies more than they charge cable systems.

The law also requires that within two years, a satellite service must carry all local channels in a market where it carries any local channels.

That forced satellite firms, which have limited transmission capacity from their space craft, to scale back their planned local offerings.

Lawmakers at the last minute dropped a plan to offer $1.25 billion of government-backed loans to encourage companies to build new systems to offer local stations to satellite subscribers in smaller markets.

Senate Banking Committee chairman and Texas Republican Phil Gramm knocked out the loan program, which he termed a give-away to big business, but lawmakers agreed to revisit the issue early next year.

The final law took took shape after Congress heard complaints from many thousands of satellite TV subscribers asking for more liberal rules on local offerings. Broadcasters and the major networks, CBS Corp., General Electric Co.'s NBC, News Corp.'s Fox and Walt Disney Co.'s ABC, lobbied for tighter restrictions.

The law signed on Monday also prevents a court-ordered cut-off of network programs from a few major network stations.

A federal court in Miami last year found that satellite companies had illegally signed up millions of customers for distant network signals which were only supposed to go to customers with inadequate over-the-air reception.

Under the law, people living about 35 to 70 miles from local TV stations would not lose distant network shows for five years. People living farther away were not affected by the court's order and should continue to receive the shows.

Shares of Hughes rose 5-3/16 to 90-1/16 on the New York Stock Exchange. EchoStar shares fell 3-3/8 to 69-1/8 on the Nasdaq.

DirecTV Applauds Passage of Satellite Home Viewer Act

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Nov. 19, 1999--DIRECTV, Inc. today applauded Congress for passing the ``Satellite Home Viewer Improvement Act of 1999.'' The bill permits improved competition between satellite carriers and cable operators.

As previously announced, DIRECTV will offer local broadcast network channels via satellite to up to 50 million homes, or about half of the nation's television households. DIRECTV will begin rolling out local channels in Los Angeles and New York within hours following the President's signature of the new law, and will continue adding markets throughout the remainder of 1999 and in 2000.

In addition to Los Angeles and New York, the first markets to receive this new local channel service include San Francisco, Washington, D.C., Denver, Detroit and Miami. Additional markets will be announced in the coming weeks as the rollout continues.

DIRECTV customers will be able to subscribe to their local channel package -- which will include a national PBS feed -- for $5.99 per month.

DIRECTV will deliver local broadcast network channels in approximately 20 markets from its satellites at 101 degrees West Longitude (WL), its primary orbital slot. As a result, DIRECTV customers in those markets can receive their local channels as well as DIRECTV's current lineup of national digital entertainment and information programming through their existing digital set-top box and 18-inch antenna.

DIRECTV will deliver local channels in additional cities from the 110 and 119-degree WL orbital slots. Local channels delivered from the 110 and 119 degree WL orbital slots will be received via the new DIRECTV Plus System, which features an 18-by 24-inch oval satellite dish. The DIRECTV Plus System also receives and seamlessly integrates the existing lineup of popular networks, premium movie services, pay-per-view selections and sports programming subscriptions from 101 degrees WL.

U.S. lawmakers agree on satellite television deal

WASHINGTON, Nov 18 (Reuters) - U.S. lawmakers finally reached agreement on Thursday to approve legislation allowing satellite television services to carry hundreds of local TV stations for the first time.

The bill, which is intended to bolster satellite services as a competitor to cable companies that already carry local stations, will be included in the huge budget appropriations package that lawmakers expect to adopt in a few days.

A program to offer $1.25 billion in government-backed loans to bring local TV programming to satellite subscribers in rural areas would not be included, but would be revived early next year.

The loan program was dropped as a concession to Phil Gramm, the Texas Republican who is chairman of the Senate Banking Committee. Gramm opposed the plan as a give-away to wealthy corporations. Consumer groups also objected to the provision, which they said could also provide loans to cable companies in rural areas, undercutting the bill's objective of boosting the competitive position of satellite services.

The bill allows satellite TV services to carry local channels from around the country and extends their expiring authority to carry network and superstation programs.

Republican say they have deal on satellite TV bill

WASHINGTON, Nov 17 (Reuters) - Some Republican senators said they had a deal late Wednesday to approve legislation allowing satellite television services to carry hundreds of local TV stations, but Democrats said the plan was unacceptable.

The continued feuding left the fate of the bill, intended to bolster satellite services as a competitor to cable companies that already carry local stations, still unresolved.

New Mexico Republican and Senate Budget Committee Chairman Pete Domenici, speaking to reporters after a Capitol Hill budget negotiating session, said senators agreed to include the satellite television bill in a massive year-end budget package.

A program to offer $1.25 billion in government-backed loans to bring local TV programming to satellite subscribers in rural areas would not be included, but would be revived early next year with action promised by April, he said.

The move came as a concession to Texas Republican and Senate Banking Committee Chairman Phil Gramm, who opposes the loan program. Consumer groups have also objected to the provision, which they said could be used by cable firms that compete against satellite services.

That outraged other lawmakers, including Senate Minority leader and South Dakota Democrat Tom Daschle. ``That's going to be a real problem for a lot of members,'' said a spokeswoman for Daschle.

Earlier on Wednesday Mississippi Republican and Majority Leader Trent Lott said lawmakers would resolve their differences one way or another.

``Before we leave, we need to get the satellite dish issue completed or through,'' Lott told reporters. ``The important thing is we will deal with the satellite legislation before we leave and we'll make sure that that is in the final package.''

The bill allows satellite TV firms to carry local channels from around the country and extends their expiring authority to carry network and superstation programs. If Congress adjourned for the year without completing the bill, satellite firms not only lose a new right to carry hundreds of local stations but on Dec. 31 will lose their current legal authority to carry network and superstation programming.

Satellite TV bill in limbo after renewed bickering

By Aaron Pressman

WASHINGTON, Nov 16 (Reuters) - The seemingly unending saga of legislation to let satellite television services carry local TV stations dragged on Tuesday, as the delay threatened to cut off programming seen by millions of satellite subscribers.

The bill, which would allow satellite TV firms to carry local channels from around the country and extend their expiring authority to carry network and superstation programs, remained caught in a fight between Texas Republican Phil Gramm and senators from rural states.

Negotiations continued Tuesday in attempt to resolve the deadlock.

If Congress adjourns for the year without completing the bill, satellite firms not only lose a new right to carry hundreds of local stations but on Dec. 31 will lose their current legal authority to carry network and superstation programming.

Senator Gramm has objected to a provision in the bill added by a conference committee of lawmakers from the House and Senate that would create a $1.25 billion program of government-backed loans to bring local stations to satellite subscribers in rural areas.

Leading satellite TV firms say they will only be able to deliver local stations in the top 50 or 60 markets. The loan program is intended to help the companies, or others, extend local programming to far more of the 211 markets.

But Gramm, a formidable legislator and chairman of the Senate Banking Committee, has called the loan program a ``giveaway'' to successful companies and vowed to block the legislation.

Last week, lawmakers thought they had a compromise to remove the loan program for now and revive it next year. But rural senators led by South Dakota Democrat and minority leader Tom Daschle refused to go along and the compromise unraveled.

On Tuesday, senate staffers said a variety of options were under consideration, including adding the legislation to a massive budget package that ultimately cannot be blocked.

Vermont Democrat Patrick Leahy, a supporter of the loan program, took the Senate floor Tuesday and asked Senate leaders to call Gramm's bluff and bring the legislation forward.

Lacking the votes to defeat the measure outright, Gramm could then try to filibuster, a parlimentary maneuver that requires 60 votes to overcome.

Leahy said the Senate would easily support cloture, or the 60 vote move needed to end a filibuster.

``I would join with the majority leader if he wants to bring it up and instantly file cloture,'' Leahy said. ``I can get him the signatures for that in 20 seconds. I can guarantee him ... that he would get far more than the 60 votes necessary.''

Most aides remained confident Tuesday that some compromise would ultimately be reached.

``This really needs to be done,'' said one Congressional staffer, worried about the impact of television sets going black just in time for the annual New Year's football bowl games. ``They need their TVs. They aren't exactly going to the opera.''

Bill Would Allow DirecTV to Offer Local Channels

WASHINGTON (AP) - Nov.9,1999- DirecTV would be able to offer local channels under legislation headed for a vote in Congress. Negotiators from the House and Senate hammered out an agreement Monday on a measure to enable millions of satellite television viewers to watch local TV news, weather and sports broadcasts.

The legislation, which could be voted on as early as today, would allow DirecTV to beam local broadcast signals to customers. Under existing law, satellite television companies are barred from doing this. DirecTV will be able to start providing local stations as soon as the bill becomes law. They will then have six months to reach required retransmission agreements with the networks.

Ken Johnson, spokesman for Rep. Billy Tauzin, R-La., chairman of the House Commerce telecommunications subcommittee, said: "It's not everything we wanted, but the satellite industry will be in a better position under this legislation to provide competition to cable systems across America, and that's good news to consumers."

The measure is intended to resolve a dispute between satellite companies and broadcasters over conditions under which viewers who get their television from satellite can watch broadcast TV programs. Under the bills, satellite TV customers would receive local broadcast signals directly from a satellite company. By 2002, the companies that carry any would have to carry all local broadcast stations in a given market.

"We've been ready and anxious to offer local channels," said Bob Marsocci, spokesman for DirecTV, which has 7.7 million subscribers. "We believe on balance that the measure is worthy of our support." Marsocci said DirecTV expects it will be able to offer a satellite package with local broadcast channels to 50 million homes after the bill becomes law.

The compromise dropped a proposal that would have required the satellite companies to provide free over-the-air antennas to people who had network programming cut-off this year under a court order.

Clinton Administration Blasts Satellite TV Bill

WASHINGTON, Nov 5 (Reuters) - The White House has major problems with almost-completed legislation in Congress to allow satellite television services to carry local TV programming, according to a letter released on Friday by the Clinton administration.

In a letter to lawmakers, Commerce Secretary William Daley said parts of the proposal could raise prices for consumers and make it more difficult for satellite TV firms to compete with land-based cable services.

Instead of helping satellite firms compete, some parts of the bill "appear to create economic and regulatory disincentives for providing local-into-local carriage of broadcast signals, to limit consumer programming choices, to permit discriminatory conduct and to increase the potential cost of satellite programming," Daley wrote.

But leading Republicans said the administration's complaints are too late to influence the shape of the bill.

"All the White House has to do is veto the bill and we'll just forward all the phone calls from thousands of irate consumers to them over the holidays," said a spokesman for Louisiana Republican Billy Tauzin, a leading participant in the negotiations.

Lawmakers are almost finished with their proposal to allow satellite firms for the first time to carry local TV stations for their subscribers in each local market.

The bill was originally intended to bolster satellite TV as a competitor to cable monopolies, which recently saw federal regulations phased out and have raised prices at more than three times the rate of inflation over the past three years.

But an intense lobbying campaign by television broadcasters convinced lawmakers to add a number of limitations on satellite TV firms carrying local channels.

For example, the proposal would allow TV stations to charge satellite firms more than they charge cable companies for carrying their programming.

The plan also would require satellite firms to supply free over-the-air TV antennas to hundreds of thousands of customers who had programming from major television networks cut off under a court order.

Even if the bill became law, satellite firms would require several years to phase in local coverage. And because the bill would require that a satellite service carry all stations in each local market if it carried even one station, the companies have said they have only enough channel capacity to serve the largest 50 to 70 U.S. cities.

Daley's letter called the free antenna provision an "unreasonable and unjustified burden."

Satellite Home Viewer Act of 1999

WASHINGTON, DC (Etown) October 26, 1999 - The much-anticipated Satellite Home Viewer Act of 1999 is "coming down the home stretch," according to Ed McDonald, chief of staff for Rep. Howard Coble (R-N.C.), one of the bill's lead sponsors. "There are still one or two issues that need to be resolved but the feeling is the conference committee can complete its work over the next two days."

If its work can be completed, a conference report will be sent back to the House and Senate for ratification. McDonald felt the legislation would be acted upon quickly since Congress is furiously working to finish key pieces of legislation before adjournment which is "scheduled for October 29th but everyone believes the session could last until November 18-19." Once the revised bill is passed, it will move to the President's desk for signature.

According to Jennifer Buckley, spokesperson for the Satellite Broadcasting and Communication Association (SBCA): "We have received no word from the administration that there will be any problem with the bill-unless there are extraneous amendments attached to it." She felt the bill was such an important issue for millions of consumers that wouldn't happen.

It looks like local channels are on the way for satellite owners. Expect the cable companies to start howling like werewolves on Halloween, the point at which satellite companies will be able to deliver local channels. It's the inability to watch local shows that keep most people from cutting the cable cord.