The U.S. Copyright Office will begin work on a rulemaking to determine if current copyright laws permit DBS retransmission of local network signals within the stations' designated market area.
Copyright Office attorney Bill Roberts said a final ruling will be made once comments on the notice of inquiry have been reviewed. Final comments are due Feb. 28, 30 days after the notice appears in the Federal Register.
The effort is being undertaken due to EchoStar's delivery of local signals in select markets to viewers in "unserved" areas. The company said it plans to expand the service to include local broadcasters in several markets.
The Copyright Office must determine whether the EchoStar retransmission is permissible under the Copyright Act. Any decision will not address mustcarry or retransmission consent, considered the jurisdiction of the FCC.
PrimeStar took the No. 8 position among Super Bowl advertisers with its "Car Saves Satellite Dish" spot airing during the second half of the game.
For the fifth straight year, Pepsi grabbed the top spot. Its "Flying Geese" ad, the first commercial that aired during the game, was also the most popular.
Budweiser ads featuring lizards and their attempt on the lives of croaking frogs took four of the top ten spots.
The new owner of AlphaStar said plans are in place to restart the original satellite service and add a data transmission business sometime this year.
Mahmoud Wahba, president of Champion Holding, told Investors his plans include establishing three subsidiary companies; AlphaStar PC Webcasting, AlphaStar TV Broadcasting,and Champion Private Network and Teleport.
The broadcasting unit would represent AlphaStar's reentry into the DBS market. AlphaStar's PC division will provide video, audio, text and data to computers via satellite. Champion also intends to transport signals for intranets, or private networks.
An additional $50 million is needed to get AlphaStar up and running again, according toWahba, and the new service requires about 200,000 subscribers to break even.
Champion Holding bought AlphaStar assets for $4.65 million, a purchase that includes the uplink facility in Oxford, Conn., valued at $72 million.
TeeComm Electronics, AlphaStar's former parent, went into receivership in May. Service was cut off for AlphaStar's 60,000 subscribers.
EchoStar chairman Charlie Ergen told lawmakers in Washington, D.C., his company is breaking no laws with its satellite delivery of local TV stations.
Ergen made that assertion this week not only to members of Congress, but also to the U.S. Copyright Office and other officials.
During his visit with lawmakers, he admitted that not all TV stations would be carried in selected markets, which for now include Washington, Atlanta, Boston, Dallas, New York and Chicago. However, he stressed that channels which "have a significant rating, we are going to put you on." More cities are expected to be announced in the near future.
The "localintolocal" effort isn't sitting well with most broadcasters, most of which are concerned with EchoStar's position that it isn't required to carry all stations.
For its part, FOXowned stations won't carry ads promoting the new service. An EchoStar spokeswoman said affiliates for one broadcaster, CBS, apparently approved the ads while stations carrying the other two, NBC and ABC, are still studying the marketing effort.
In addition to the local lobbying effort, Ergen urged the FCC to reject PrimeStar's request to go highpower.
The merger of SportsChannel regional services with the family of Fox Sports Net regional channels was formally completed this week. The merger will bring five SportsChannel regional networks, along with Madison Square Garden Network, to the Fox Sports Net family.
Included are SportsChannel New York (now renamed Fox Sports New York) and SportsChannel Pacific.
Kraft Foods and Grey Advertising are partnering with TeleCommunications Inc. for a multimilliondollar effort to develop advertising and marketing programs that includes the first householdaddressable television advertising applications.
Under the agreement, Kraft will advertise on TCI cable systems in a number of markets including Chicago, Dallas, San Francisco, Houston, Miami, Denver and Seattle. Advertising will air over CNN, ESPN, Nickelodeon, TBS, TNT and others.
Using TCI's digital network, the alliance will create micromarketing advertising vehicles that reach consumers with targeted messages on a householdbyhousehold basis. One of the first applications of this geodemographic targeting application may be the use of different ad messages to urban and suburban markets within the same region. The effort will begin later this year.
"In Tune," a weekly magazine show featuring news and information about the music world is airing on DirecTV channel 500. "In Tune" features 30 minutes of music videos and interviews with new and established artists; entire episodes will often highlight specific music genres such as rock, pop and country.
The Spice Girls concert taped late last year in Istanbul, Turkey and presented in January as a Showtime Event Television payperview special attracted more total buys than any PPV concert since the Woodstock reunion concert in August 1994, according to the company.
In its three plays over cable systems and U.S. Satellite Broadcasting, "Spice Girls in Concert Wild!" generated some 130,000 buys at $19.95 each.
In an effort to simplify consumer offers, DirecTV is giving retailers the choice of offering standard installation for $99 or a DSS system bundled with standard professional installation for $299.
The offer accompanies an offair antenna campaign DirecTV hopes will educate potential customers on the ease of receiving local signals. According to the DBS provider, it will be up to retailers to educate customers on offair antenna use and to install antennas with a DSS system. Print ads featuring the new offers also will emphasize DirecTV's Select Choice package and the five channels that will be added to the offering next month. The channels will debut with the $19.95 package at no extra charge.
The Senate Commerce Committee held hearings on how to temporarily halt a U.S. Copyright Office decision forcing satellite subscribers to pay 27 cents every month for superstations and national network feeds.
The new fee kicked in Jan. 1, and has raised concerns among satellite industry leaders and lawmakers who feel higher rates could hinder DTH's efforts to compete with cable.
"One of the most urgent communications policy issues we face today is how to constrain the cable television industry's seemingly relentless monthly price increases," said Sen. John McCain, an Arizona Republican and chairman of the Senate Commerce Committee.
Hearings focused on a bill McCain introduced that would temporarily suspend the Copyright Office's decision, thus giving Congress time to study the issue. The bill has the support of Sens. Conrad Burns, RMont., and Byron Dorgan, DN.D. Similar legislation is before the House.
DirecTV President Eddy Hartenstein told the panel that home satellite's efforts to compete with cable are hampered by regulatory and statutory obstacles, including the copyright fee.
Hartenstein voiced support for McCain's bill, which he said would give "satellite TV subscribers a temporary reprieve from the discriminatory differential in copyright fees." He also said the legislation "would give Congress the time it needs to revise the law to ensure that satellite TV subscribers are treated equitably in the future."
Before the 27cent fee, subscribers paid 6 cents per month for national networks, and 14 cents to 17.5 cents for superstations.
Meanwhile, Burns, chairman of the Communications Subcommittee, said this week that "satellite reform" is one of the panel's top three issues for the first half of 1998. He formed an informal working group to study related issues and prepare for a planned April 20 hearing before his subcommittee.
One of Congress' top lawmakers has introduced legislation hoping to put rates charged to DTH satellite subscribers for superstation and national network feeds on the same level as fees charged to cable.
Rep. Howard Coble, a North Carolina Republican and chairman of the House Subcommittee on Courts and Intellectual Property, said his bill will "improve the copyright compulsory license for satellite carriers ... by applying to such carriers the same opportunities and rules as their cable competitors."
There has been little initial response to the legislation. The SBCA and satellite carriers said they are reviewing the legislation and will meet this week to formulate an industry response.
The SBCA did point out some concerns. One issue involves localintoLocal retransmission of network signals, with Coble's proposal requiring full mustcarry, retransmission consent, syndicated exclusivity and sports blackout requirements.
On Jan.1, satellite subscribers were handed the new copyright rate for all distant broadcast signals and superstations.
DirecTV is targeting large cities that have seen increased cable subscription rates with a marketing campaign emphasizing its service and quality.
The service is running print advertising in daily publications in those cities promoting the DSS system, programming and the shortcomings of cable. The targeted markets are Atlanta, Boston, Chicago, Dallas, Denver, Detroit, Houston, Indianapolis, Los Angeles, Phoenix, Raleigh/Durham, New York City, Sacramento, San Diego, San Francisco and Oakland, Seattle, Tampa and Washington, D.C.
According to DirecTV, cable rates in some of the selected cities have increased by as much as four times the rate of inflation. The jump in cable rates has also caused concern in Washington, D.C., where policymakers are considering steps to curb further increases.
The FCC preempted restrictions imposed by a townhome association concerning the use and installation of DBS satellite dishes.
In the order, the FCC's Cable Services Bureau found the townhome restrictions were prohibited under FCC rules covering private and governmental restrictions and impaired the ability of a homeowner to install, maintain or use an antenna.
In the decision, Jason Peterson of Geneva, Ill., filed a petition with the FCC citing that the Chesapeake Commons Homeowners Association was enforcing an illegal restriction, which prohibited installation of television antennas or satellite dishes. Peterson asserted he had ownership and exclusive use of his roof and three of the exterior walls, and that Chesapeake's restrictions are preempted by the Commission's rule.
The commission concurred and found that Chesapeake's antenna restriction and its prohibition of Peterson's DBS antenna were prohibited by the rule. Chesapeake did not respond to the petition.
Television and satellite interests have asked the Canadian Radio and Telecommunications Commission to ensure competition for the delivery of wholesale satellite uplinks to multichannel distributors such as cable and MMDS companies, a business dominated by Cancom.
Star Choice Television Network, the DTH satellite operator, is one of the more vocal backers of the proposal. The company wants to offer its signals to other multichannel operators on a wholesale basis, offering services at a competitive price.
"Given the scarcity of Canadian satellite space, our plan to deliver the same digital satellite signals to DTH and wholesale customers makes a lot of sense for the broadcasting industry," said Star Choice Chairman Brian Neill.
Star Choice got support for its stand from the Canadian Cable Systems Alliance and Association des cabledistributeurs du Quebec.
For its part, Cancom, which faces licensing renewal for its services, said it welcomes competition, but with conditions.
Cancom argued any service must extend programming into remote and underserved regions, areas the company argues might be ignored "in a purely economical environment." The company added new services should offer a preponderance of Canadian services and respect Canadian ownership of programming rights.
The ninth SkyFORUM, which usually attracts Wall Street analysts, various members of the media, DTH company representatives, programmers, bankers and others will be held Wednesday, April 15, in New York City.
There will be three sessions at the symposium. The first will focus on emerging technologies such as digital radio Services and mobile satellite communications. A second panel will feature top Wall Street analysts exploring the execution of DBS business plans and competition in the multichannel video marketplace. The third session will take on payperview and strategies of companies within the entertainment industries.
In addition to the panels, each DBS chief executive will be interviewed oneonone by Harry Jessell, executive editor of Broadcasting & Cable. The interviews will be interspersed between panels throughout the day.
United Video Satellite Group agreed to acquire various business interests from Liberty Media Group in a tax free stock transaction.
United Video will acquire Liberty's 40 percent interest in the Superstar/Netlink Group, the CBand DTH satellite programming distribution joint venture currently managed and controlled by the company. It will also get Liberty's 100 percent interest in Netlink International, which delivers various distant broadcast signal services to multichannel video service providers. In exchange for these assets, United Video will issue to Liberty approximately 6.375 million shares of Class A Common Stock.
As a result of this transaction, TCI's collective interest in United Video will increase from its previous 73 percent to approximately 77 percent, 29 percent of which is attributable to Liberty and 48 percent of which is held by TCI Ventures Group.
Iridium finally got five of its satellites aboard a Delta II rocket off the ground at Vandenberg Air Force Base in California.
The five birds will join 44 operational satellites launched in 1997. The launches put Iridium within months of completing its lowearthorbit constellation, company officials said.
Motorola's Satellite Communications Group is the prime contractor for the Iridium system, and is one of 20 global organizations that has invested in the company, which hopes to debut the service late this year.