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JANUARY THROUGH APRIL
Jan. 15, 1990:
General Instrument Corp.'s VideoCipher Division begins shipping
its VideoCipher II Plus, the long-awaited successor to the broken
VC II. (Satellite Business News, Jan. 24, 1990)
Jan. 22: The issue of whether and how to convert satellite
dealers involved in piracy to legitimate businesses becomes a
heated one within the Satellite Broadcasting and Communications
Association. (Satellite Business News, Feb. 7, 1990)
Jan. 2: The second session of the 101st Congress gets
underway with the Senate Communications Subcommittee considering
a bill to reimpose rate and other regulation on the cable industry.
(Satellite Business News, Feb. 7, 1990)
Feb. 8: Nine major multisystem cable operators and GE
American Communications Inc. announce plans to launch a DBS service
on GE Americom's Ku-band Satcom K1 satellite. (Satellite Business
News, Feb. 21, 1990)
Feb. 13: Home Dish Satellite Networks Inc. is indicted
in Alabama on obscenity charges because customers in the state
received the company's American Extasy adult entertainment service.
Also indicted are GTE Spacenet Corp., Home Dish's satellite carrier,
and U.S. Satellite Inc., a Salt Lake City company that uplinks
American Extasy. (Satellite Business News, March 7, 1990)
Feb. 21: General Motors Corp.'s Hughes Communications
Inc., General Electric Co.'s NBC, Rupert Murdoch's News Corp.
Ltd., and Cablevision Systems Corp. announce plans to launch
Sky Cable," a high-powered DBS service in 1994. (Satellite
Business News, March 7, 1990)
Feb. 28: VC II authorizations fall to less than 4,000
for the month and hackers, anticipating difficulty in breaking
the VC II Plus, begin stockpiling VC IIs. (Satellite Business
News, March 21, 1990)
March 9: Home Dish's legal problems lead GTE to kick American
Extasy off its satellite. Over the next two months, lost revenue
from American Extasy will force Home Dish to stop transmitting
its mainstream movie service, Stardust Theatre. (Satellite
Business News, March 21, 1990)
March 28: HBO Satellite Services Inc. says it will sell
its programming wholesale to third-party distributors, reversing
a long- standing policy. The first agreement will be signed in
June with Consumer Satellite Systems' National Programming Service.
(Satellite Business News, April 4, 1990)
April 11: Hughes Communications Inc. forces Tuxedo Network
Inc. off its Galaxy 2 satellite when that service comes under
investigation for obscenity in Alabama. Tuxedo is indicted soon
afterward. (Satellite Business News, May 2, 1990)
April 11: A shortage of VC II Plus modules delays the
upgrade program for a month. The program, which allows consumers
to trade VC IIs for VC II Pluses for $129, is now scheduled to
begin May 1. (Satellite Business News, April 18, 1990)
April 12: The FCC votes not to endorse the establishment
of a decoder standard for satellite programming. (Satellite
Business News, May 2, 1990)
April 17: TVN Entertainment Corp. announces it will launch
a pay- per- view service in September, even though it has not
signed any long-term distribution deals with major movie studios.
TVN has major backing from Uniden America Corp. and plans to
offer 10 pay-per-view channels and seven basic channels on AT&T's
Telstar 303 satellite. (Satellite Business News, April
4, 1990)
April 29: British Satellite Broadcasting Ltd. launches
its five- channel DBS service in direct competition with Rupert
Murdoch's Sky Television. Sky had launched in 1989, but BSB was
delayed by technical problems. (Satellite Business News,
April 18, 1990) |
MAY THROUGH AUGUST
May 2:
The SBCA purchases Satellite Television Technology International
Inc. for around $2.25 million and becomes the sole owner of the
industry's two major trade shows. (Satellite Business News,
May 2, 1990)
May 14: K Prime chooses Scientific-Atlanta Inc. to develop
its scrambling system, an updated version of B-MAC. (Satellite
Business News, May 30, 1990)
May 14: GI's trade-in program offers consumers a VC II
Plus with a VideoPal for one price, and GI will cease authorizing
new VideoPals with VC IIs. Meanwhile, while piracy cases across
the country continue to result in guilty pleas and verdicts,
one Alabama dealer is found not guilty of piracy. (Satellite
Business News, May 30, 1990)
May 2: Following an investigation by the U.S. Customs
Department, Echosphere Corp. is indicted in federal court in
Dallas for violations related to the alleged illegal export of
VideoCipher decoders. (Satellite Business News, June 13,
1990)
June 1: Sears Roebuck & Co. accelerates its entry
into the TVRO business and makes satellite dealers part of its
effort. Dealers affiliated with the company can use Sears' name
in advertising and allow their customers to purchase their systems
with Sears charge cards. Sears is one of the first national retailers
to enter the TVRO industry. (Satellite Business News,
June 13, 1990)
June 7: The Senate Commerce Committee passes a cable re-regulation
bill. Among the bill's provisions is one requiring programmers
to sell services to all multichannel operators and third-party
distributors. Though the cable industry could not stop the bill,
it did defeat language that would allow telephone companies into
the cable business.
Meanwhile, the House Energy and Commerce Committee prepares its
own cable re-regulation bill, while the Bush Administration begins
to send signals it opposes current re-regulation efforts. (Satellite
Business News, June 13, 1990)
July 3: The plans of SkyPix, a Seattle company associated
with Northwest Starscan Ltd., come to light. SkyPix plans to
launch an 80- channel, video compression-based pay-per-view service
and begin testing it early next year. It plans to run movies
at 15-minute intervals and act as a "video store in the
sky." (Satellite Business News, July 11, 1990)
July 9: Forstmann Little & Co. agrees to purchase
GI for $1.6 billion. Forstmann is expected to sell parts of GI
while keeping its cable interests--Jerrold Division and CommScope
Inc.--and the VideoCipher Division. (Satellite Business News,
July 11, 1990)
July 18: Showtime Satellite Networks Inc. begins negotiating
wholesale distribution contracts with third-party packagers.
(Satellite Business News, July 25, 1990)
July 26: A House version of the cable bill passes the
Energy and Commerce Committee. It calls for rate regulation by
the FCC and programming accessibility, but does not allow telcos
into cable. (Satellite Business News, Aug. 8, 1990)
July 26: The same day the House passes its cable bill,
the FCC releases its long anticipated report on cable. While
it allowed there are problems with some aspects of cable rates,
customer service, and programming availability, the commission
says increasing competition, not re-regulation, is the solution.
The report does not mention whether or not telcos should be allowed
into cable. (Satellite Business News, Aug. 8, 1990)
Aug. 22: Forstmann completes its buyout of GI. (Satellite
Business News, Aug. 22 and Sept. 5, 1990)
Aug. 31: The NFL announces its plans to have the networks
implement scrambling of backhauls and affiliate feeds during
the season. The ensuing howls of protest from bar and restaurant
owners and fans have some national advertisers and at least one
Congressman complaining to the NFL. (Satellite Business News,
Sept. 5, 1990) |
SEPTEMBER THROUGH DECEMBER
Sept. 10:
The House of Representatives passes its cable bill, but its progress
is slowed in the Senate where cable supporters, notably Tim Wirth
(D-Colo.), have problems with the programming exclusivity provisions.
(Satellite Business News, Sept. 19 and Oct. 3, 1990)
Sept. 10: The NFL decides there will be no scrambling
this year, but the issue could return next year. The league says
it may use the backhauls and affiliate feeds to experiment with
pay-per-view in the future. (Satellite Business News,
Sept. 19, 1990)
Sept. 14: TVN misses the target date for launching its
service, though it claims to be transmitting movies over its
10 scrambled channels. TVN still has no distribution deals and
does not take orders for subscriptions or decoders. (Satellite
Business News, Sept. 19, 1990)
Sept. 18: Pressure to accelerate the move from VC II to
VC II Plus builds, especially with the introduction of the "BlackCipher"
module in Canada. At the same time, the SBCA's Anti-piracy Task
Force faces a funding crisis, as GI hedges on paying its full
allotment for the year, following its purchase by Forstmann Little
& Co. (Satellite Business News, Oct. 3, 1990)
Oct. 2: Bob Caird, head of HBO Satellite Services Inc.,
is elected chairman of the SBCA board of directors for 1991,
succeeding Gordon Main. Caird will become the first programmer
to hold the post. (Satellite Business News, Oct. 17, 1990)
Oct. 4: Forstmann Little hires former Defense Secretary
Donald Rumsfeld as chairman and chief executive officer of GI.
(Satellite Business News, Oct. 17, 1990)
Oct. 11: The SBCA, GI, and programmers discuss a plan
to fund the APTF from the sale of VC II Plus modules, and GI
agrees to pay for the VC II Plus upgrade. That plan is later
changed to have businesses that control tier bits or business
ports at GI's DBS Center pay a fee to the APTF. (Satellite
Business News, Oct. 17 and Oct. 31, 1990)
Oct. 12: Sen. Al Gore (D-Tenn.), a longtime opponent of
cable, and Wirth reach a compromise on the cable bill. (Satellite
Business News, Oct. 17, 1990)
Oct. 19: As skepticism grows that SkyPix can launch by
its target date of early 1991, Comsat tentatively agrees to invest
at least $100 million in SkyPix. Meanwhile, the Sky Cable partners
are having trouble reaching final agreement. (Satellite Business
News, Oct. 31, 1990)
Oct. 19: With little time left for debate, Gore declares
the cable bill dead and blames the Bush Administration for its
opposition to any sort of regulation. Both Gore and Sen. Jack
Dan forth (R-Mo.), sponsor of the bill, vow the issue will return
during the next session of Congress (Satellite Business News,
Oct. 31, 1990)
Oct. 22: The American Home Satellite Association begins
to cut back on its membership services, apparently in preparation
for a shut-down of the organization. (Satellite Business News,
Oct. 31, 1990)
Oct. 26: Congress adjourns without taking any further
action on cable re-regulation. (Satellite Business News,
Nov. 14, 1990)
Oct. 29: Recreational Sports & Imports and several
employees plead guilty to illegally exporting VideoCiphers. The
company was indicted in 1989. (Satellite Business News,
Nov. 14, 1990)
Oct. 29: The final chapter of the Home Dish story is written
as the programmer pleads guilt to violating Alabama's obscenity
laws and agrees to pay $155,000 in fines and penalties (Satellite
Business News, Nov. 14, 1990)
Oct. 31: Warren Supply Co.'s Programmers Clearing House
signs third- party agreements with several major programmers,
including HBO, Showtime, The Disney Channel, and Satellite Sports
Networks. In December, RS&I buys half of PCH. (Satellite
Business News, Nov. 14 and Dec. 26 issues, 1990)
Nov. 3: Bitter rivals BSB and Sky TV merge to form British
Sky Broadcasting. The new company is expected to use Sky's programming
and encryption system. The merger is a blow to GI, whose Eurocypher
system was used by the former BSB. (Satellite Business News,
Nov. 14, 1990)
Nov. 12: K Prime launches its PrimeStar package in 24
test markets across the country. It consists of seven superstations
and three pay- per-view channels. Each MSO is taking its own
approach to marketing and installing the service and equipment.
(Satellite Business News, Nov. 1, 1990)
Nov. 27: Echosphere and several employees are indicted
in Phoenix for illegal export of decoders. The case is separate
from the one in June. (Satellite Business News, Dec. 1,
1990)
Dec. 3: Comsat and SkyPix part company in an acrimonious
barrage of charges and counter charges. Despite the loss of Comsat,
SkyPix says it is still on schedule to begin testing its service
early next year. (Satellite Business News, Dec. 1, 1990)
Dec. 5: The Sky Cable partners are unable to agree on
terms to form the company, and the project may be reformed with
other partners. (Satellite Business News, Dec. 12, 1990)
Dec. 13: The FCC takes steps to redefine effective competition
for cable systems, which could allow the commission to re-regulate
the rates of many systems. (Satellite Business News, Dec.
26, 1990) |