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JANUARY THROUGH APRIL
January: Tele-Communications Inc.'s Netlink announces
plans to uplink three East Coast network superstations to compete
directly with PrimeTime 24's channels. PrimeTime follows suit
with western channels of its own in August. (Satellite Business
News, Dec. 29, 1993, and Aug. 10, 1994)
January: GM Hughes Electronics Inc.'s DirecTv and Thomson
Consumer Electronics Inc. announce hardware and programming distribution
deals with Sears Roebuck & Co. and Circuit City. The two
chains are the first of a slew of consumer electronics chains
the companies sign on to sell DBS reception systems and programming
to consumers. (Satellite Business News, Jan. 12, 1994)
Jan. 5: NFL team owners approve a plan to scramble game
backhauls in the 1994-95 season and sell a package of games to
dish owners and commercial establishments on a season ticket
basis. (Satellite Business News, Dec. 29 and Jan. 12,
1994)
Jan. 28: EchoStar Communications Corp. and SEE Telecom
Inc.'s Directsat announce a merger agreement that would double
EchoStar's channels at the 119-degree DBS orbital slot. (Satellite
Business News, Feb. 9, 1994)
February: Several C-band industry leaders join together
to recruit companies for a major marketing and advertising campaign
The project seeks to raise a minimum $600,000 to produce direct
mail flyers, ad slicks, and promotional materials for satellite
dealers. (Satellite Business News, Feb. 9, 1994)
February: The U.S. Department of Justice opens a broad
investigation of agreements TCI and Home Box Office Inc. signed
with General Instrument Corp. in late 1993 to employ GI's DigiCipher
digital compression system. The investigation centers on whether
the deals position those companies to wield unfair influence
in an emerging digital TV market. (Satellite Business News,
Feb. 23, 1994)
Feb. 10: The satellite TV industry gathers in Anaheim,
Calif., for its annual winter trade show. Low attendance for
the second year in a row in California prompts the Satellite
Broadcasting and Communications Association to cross the state
off its list of future convention sites (Satellite Business
News, Feb. 23, 1994)
Feb. 23: Bell Atlantic Corp. and TCI call off their $21.4
million merger agreement, one day after the Federal Communications
Commission orders cable operators to roll rates back 17 percent.
Southwestern Bell Corp. and Cox Enterprises Inc. cancel their
joint venture six weeks later. (Satellite Business News,
March 9 and April 20, 1994)
Feb. 24: SBCA Retail Council member Steve Labrie and 23
others are indicted on federal drug charges in connection with
an alleged international drug ring. Labrie maintains his innocence;
a court date has not yet been set. (Satellite Business News,
March 23, 1994)
March 14: Nearly 200 industry hands gather in New York
for a dinner to kick off the T. Howard Foundation for the advancement
of minorities and women in satellite TV. The following day, the
SBCA stages its first semi-annual SkyForum conference for Wall
Street firms and mainstream media. (Satellite Business News,
March 23, 1994)
March 16: EchoStar files a $336 million debt offering
with the Securities and Exchange Commission to raise money for
its planned DBS service. (Satellite Business News, March
23, 1994)
March 22: Primestar becomes the first company in the world
to otter digital TV service, by turning on digital signals for
its TV Japan customers.(Satellite Business News, March
23, 1994)
March 30: Jim Shelton resigns his position as GI Vice
President of North American Consumer Products to go to work for
GI competitor TV/Com International. Shelton cites extensive bureaucracy
and continuous disagreements with senior management as his reasons
for leaving. Greg Gudorf leaves for Chaparral Communications
Inc. six weeks later. (Satellite Business News, May 4,
April 6, and April 20, 1994)
April: GI and several of TV's largest cable operators
iron out key disagreements holding up the completion of their
DigiCipher licensing contracts. Under debate is TCI's deal with
GI, which other cable companies claim may give TCI too much control
over the development of the DigiCipher system. TCI agrees to
re-work the GI contract and broaden access to the digital uplink
and authorization center it is building. (Satellite Business
News, May 4, 1994)
April: Recreational Sports & Imports Inc., one of
the TVRO industry's two largest equipment distributors, launches
a campaign to promote C- band, which it dubs "Full View
Satellite," over DBS, which it dubs "Limited View Satellite."
The plan raises concern among some industry leaders that C-band
is picking a fight with DBS. (Satellite Business News,
May 4, 1994)
April: Microsoft Corp. co-founder Paul Allen invests nearly
$25 million in Hubbard Broadcasting Inc.'s USSB, ending owner
Stanley S. Hubbard's search for outside investors in his DBS
venture. Allen joins Dow Jones and Co. and New York investor
George Soros as major contributors to USSB's campaign. (Satellite
Business News, April 20, 1994)
April 27: A&L Satellite Inc. files for Chapter 11
bankruptcy protection. The 2-year-old programming packager owes
more than $1.7 million to programmers, other packagers, and media
companies. Several programmers battle for control of A&L's
most valuable asset, its list of 45,000 subscribers. A court-ordered
auction of the list fails. (Satellite Business News, May
18, July 27, and Oct. 19, 1994) |
MAY THROUGH AUGUST
May 5:
Three of Canada's largest telecommunications companies join forces
to launch an alternative to U.S. DBS north of the border. Canadian
Satellite Communications, Western International Communications
Ltd., and Bell Canada parent BCE Inc. set a plan to launch a
100-channel service using 24-inch dishes. Within several months,
the group recruits a half-dozen more companies, including major
TVRO manufacturer and distributor Tee-Comm Electronics Inc.
By October, the group's cable-backed companies pull out of the
venture and announce plans to launch their own programming distribution
service for cable operators. Tee-Comm becomes an equal partner
with BCE and Cancom/WIC in the venture, dubbed ExpressVu. (Satellite
Business News, May 18, July 27, and Nov. 2, 1994)
June: VC RS module prices plummet due to an inventory
glut. (Satellite Business News, July 13, 1994)
June 11: More than 10 years of planning and engineering
come to fruition as DirecTv, USSB, and Thomson roll out the nation's
first high-power DBS services. The companies celebrate the official
debut of the service when the first systems hit the shelves of
satellite dealerships and consumer electronics stores in Jackson,
Miss. (Satellite Business News, June 29, 1994)
June 20: Primestar launches the satellite TV industry's
first-ever national advertising campaign to promote its medium-power
DBS service. The $55 million campaign includes TV ad spots to
run on the four major broadcast networks. (Satellite Business
News, June 29, 1994)
June 21: Fujitsu General Ltd. and Panasonic Communications
and Systems Co.--two holders of small C-band receiver marketshares--
pull out of the satellite TV industry. The two Japanese companies
cite a poor yen-to-dollar exchange rate and concerns about the
C-band industry's ability to compete with DBS as their reasons
for ceasing receiver production. (Satellite Business News,
June 29, 1994)
June 21: Telesat Canada regains control of the Anik E2
satellite it lost in January and begins discussions with Canadian
programmers to move satellite feeds back on board. (Satellite
Business News, June 29, 1994)
June 23: For the second time in six months, DBS companies
DirecTv, USSB, and Thomson are the dominant drawing cards for
the Consumer Electronics Show. (Satellite Business News,
July 13, 1994)
July: After a year of fielding inquiries about satellite
TV from the consumer press, the Satellite News Bureau folds.
The publicity and marketing effort, funded by 25 companies each
contributing $5,000, cited lack of cash and similar efforts by
other groups as reasons to close its doors. (Satellite Business
News, July 27, 1994)
July: Primestar and EchoStar reach an impasse in discussions
about combining their DBS ventures. Their failure to reach an
agreement leaves each company with far less DBS channels than
their nearest competitor, DirecTv, and leaves each desperate
to strike a deal with the other holder of prime orbital slot
channels--Advanced Communications Corp. (Satellite Business
News, July 27, 1994)
August: Instead of reducing the price of the VC RS module
to help the TVRO industry compete with high-power DBS, GI agrees
to pump as much as $10 million into satellite dealers' advertising
budgets through a cooperative ad plan. The offer pays dealers
$50 for every module they buy when they follow certain guidelines
to advertise satellite TV. The decision not to lower the price
of VC RS modules arguably precipitates a four-month module shortage,
the industry's second in as many years. (Satellite Business
News, Aug. 10, Sept. 7, and Oct. 19, 1994)
August: MTV Networks, in its first high-publicity TVRO
move as a sales and marketing entity separate from sister company
Showtime Satellite Networks Inc., forges an agreement with HBO
Direct Inc. for distribution of MTV, VH1, and Nickelodeon in
HBO programming packages. Under pressure from Showtime to draft
a similar agreement for distribution of Multichannel Showtime
and The Movie Channel, the deal falls apart in November. HBO
announces it will pull the plug on the MTV Networks its subscribers
have purchased. (Satellite Business News, Aug. 24 and
Nov. 30, 1994)
Aug. 3: DirecTv launches its DBS-2 satellite from Cape
Canaveral, Fla., via a General Dynamics rocket and, about two
months later, turns subscribers on to a full line-up of DirecTv
programming. (Satellite Business News, Aug. 24, 1994)
Aug. 3: The SBCA stages its second national trade show,
in steamy Orlando, Fla. Moderate dealer attendance re-ignites
discussions among SBCA members about permanently parking the
shows in Las Vegas and Nashville. (Satellite Business News,
Aug. 24, 1994)
Aug. 5: Primestar completes the upgrade of its 75,000
subscribers to digital service. The digital upgrade enables Primestar
to increase its channel offerings seven-fold, en route to competing
more closely with DirecTv's 150-channel service. (Satellite
Business News, Aug. 10, 1994) |
SEPTEMBER THROUGH DECEMBER
September:
DirecTv lands exclusive DBS rights to sell the NFL's Sunday Ticket
package to the DBS market. The deal includes a late- season offer
in 1994-95 and full-season coverage beginning in 1995-96. (Satellite
Business News, Oct. 5, 1994)
Sept. 8: AT&T loses its Telstar 402 satellite less
than 30 minutes after it is launched aboard an Arianespace rocket.
The satellite loss triggers widespread concern about a transponder
capacity crunch and an accompanying price rise. (Satellite
Business News, Sept. 21, 1994)
Sept. 16: GI's front door continues its yearlong spin,
with the Communications Division bidding adieu to President Hal
Krisbergh one year after he was named to the post. In mid-October,
GI welcomes telecommunications veteran Jim Faust to the senior
vice president's position and places him temporarily in charge
of the Communications Division. GI then brings in telephone company
executive Larry Osterwise to permanently head the division, and
four weeks later, Faust resigns (Satellite Business News,
Dec. 5, Nov. 2, and Nov. 16, 1994)
September 29: TCI buys Advanced Communications to secure
a high-power DBS orbital slot for Primestar. TCI's Tempo Satellite
applies for FCC permission to launch satellites into Advanced's
110-degree slot and use Advanced's channels to carry Primestar
programming beginning in late 1996. (Satellite Business News,
Oct. 5, 1994)
Sept. 29: EchoStar sues DBS permittee Advanced for $150
million, but many consider the move to be an attempt to pressure
Advanced's DBS business partner, TCI, to give up key 119-degree
channels it does not plan to use for its Primestar service. (Satellite
Business News, Nov. 16, 1994)
October: GI and Showtime parent Viacom International settle
their decoder suit out of court. GI paid Viacom $18 million to
$22 million to end the suit, which claims the manufacturer owed
Viacom more than $38 million in back royalty payments (Satellite
Business News, Oct. 19, 1994)
October: The VC RS module shortage reaches its peak, after
about six weeks of rising concern among distributors, then dealers
and manufacturers, that GI's supplies would not cover TVRO's
strong fall selling season. GI executives predict a possible
10,000-module shortfall in the pipeline, and prices rise to more
than $500 per unit. (Satellite Business News, Oct. 19,
1994)
Oct. 18: President Clinton signs the Satellite Compulsory
License Extension Act of 1994 into law. Better known as the superstation
copyright bill, the measure sets rules by which copyright fees
will be determined and outlines procedures for signal testing
in white areas. (Satellite Business News, July 13, Oct
5., and Nov. 2, 1994)
November: High-power DBS services DirecTv and USSB overtake
medium- power competitor Primestar in number of subscribers.
DirecTv and USSB combine for about 225,000 homes by late November,
while Primestar logs about 195,000 subscribers. (Satellite
Business News, Nov. 30, 1994)
November: Major cable systems TCI and Comcast Cable Communications
Inc. start publicity campaigns to try to check the growing popularity
of high-power DBS. (Satellite Business News, Nov. 16 and
Nov. 30, 1994)
November: Microsoft and DirecTv discuss a wide variety
of cooperative and joint ventures, including Microsoft possibly
delivering data and video services via DirecTv satellites and
reception systems. (Satellite Business News, Nov. 30,
1994)
Nov. 15: The SBCA votes to change to one national and
two regional shows beginning in 1996. (Satellite Business
News, Nov. 30, 1994)
Nov. 29: Showtime Satellite gets distribution rights to
Turner Broadcasting System Inc.'s CNN, CNN Headline News, CNN
International, and TNT. Until this year, the two programmers
had refused to cut a deal to distribute each other's channels.
(Satellite Business News, Dec. 14, 1994)
Dec. 1: The NBA begins delivering its new 400-game League
Pass offer to C-band, Primestar, and DirecTv subscribers. The
multi-year distribution deal, retailing to DBS dish owners for
$149 for the first season, features out-of-market games previously
blacked out or only available on backhauls. (Satellite Business
News, Dec. 14, 1994)
Dec. 1: EchoStar drops the prices of all of its receiver
lines by as much as 25 percent. Despite other receiver manufacturers'
professed lack of concern about a price war, Uniden America Corp.,
TVRO's leading receiver marketshare holder, follows suit within
two weeks. (Satellite Business News, Dec. 14 and Dec.
28, 1994) |