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Panel Predicts Digital Satellite Beats Digital Cable More technical experience and higher customer satisfaction rates in digital television give satellite players the edge over the cable industry's proposed retail sale of digital cable boxes, a panel of satellite marketing executives said during a session yesterday morning on selling DBS systems in a digital environment. "I think cable will have a difficult time with retail," said Stan Kozlowski, senior vice president of sales and marketing for the National Rural Telecommunications Cooperative. "The cable industry has never proven themselves to be retail friendly." Panelists agreed the opportunity to demonstrate to potential customers both digital cable boxes and digital satellite systems on the showroom floor will likely benefit satellite. They noted that where digital cable has been launched, satellite sales often increase because the concept of digital TV gets viewers interested in a full digital solution, while DBS lures them with more channel choices. "It's going to be an incredible challenge to get consumers to buy a cable box," said Mary Peterson, vice president of marketing for EchoStar, who once worked for cable operator Tele-Communications Inc. "I can't think of one customer with DISH or [a DirecTv/USSB system] who has gone back to cable." Some panelists touted the rollout of DirecTv/USSB systems with high definition TV capability, at an initial suggested retail price of $700, as a way for retailers to upgrade early small-dish satellite adopters into a new technology and make a high-margin sale. Network Signal Solutions Vary Among DBS Hands The satellite TV industry, and dealers in particular, may be able to make common cause with broadcasters in delivering local channels to DBS customers, two members of a panel yesterday afternoon concluded. "If we can solve this issue," said John Hutchinson, executive vice president of Capitol Broadcasting, which plans to spot beam 1,600 local channels to DBS customers, "all the broadcasters will be behind satellite." Satellite dealer Rik Hawkins, president of Starpath Communications in Louisville, Ky., added that if broadcasters "could get their signals into the home any other way but cable, they would do it." Taking different views were David Moskowitz, senior vice president and general counsel for EchoStar, and Carl Wegener, senior vice president of marketing for USSB. Moskowitz reiterated EchoStar's plans to deliver major broadcast channels by satellite to the top 20 markets. The plan may run into interference from the broadcast lobby, which wants full must-carry rules for satellite network distributors. Moskowitz said EchoStar has a red light/green light zip code directory on its Internet site, accessible to dealers to help them determine subscriber eligibility. Wegener displayed a color-coded map USSB and the Consumer Electronics Manufacturers Association developed, which he argued would help retailers determine the best way for DBS subscribers to receive local signals. As a front-line salesman, Hawkins said he supports all the local solutions: antennas, dedicated satellites, and spot-beams. But he also noted he cannot ignore lifeline cable when selling DBS systems, because it may meet the customer's needs. "I don't like a competitor in there," he said. "But I also like to stay in business." (click on the ad below to visit advertiser's web site) PREVIOUS PAGE NEXT PAGE   July 23 daily   July 24 daily         Please direct questions about this site to general.mail@satbiznews.com q 1999 Satellite Business News Inc. All rights reserved.