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2000 Satellite Broadcasting and Communications Association Show READ ALL ABOUT IT! PAGE 2 DirecTv, Pegasus Sign Pact on Primestar Conversions Pegasus Communications reached an agreement yesterday to acquire the names of the remaining Primestar medium-power subscribers in the National Rural Telecommunications Cooperative DirecTv distribution territories Pegasus owns. Of the approximately 450,000 remaining Primestar subscribers, approximately 65,000 to 70,000 live in Pegasus territories, Pegasus Chairman Mark Pagon said. Pegasus, the largest NRTC affiliate, already controls more than 1.2 million DirecTv subscribers. There were approximately 250,000 Primestar subscribers in Pegasus territories when DirecTv completed its purchase of Primestar last year, Pagon said. Pegasus is responsible for all costs of converting any of the Primestar subscribers it acquires, and must also pay DirecTv a $300 one-time fee per activation. Pegasus estimates the cost of each conversion will be approximately $700 to $750 per subscriber, Pagon said. The deal makes sense for both companies because, “I think both sides are anxious to expedite” the conversion of the remaining Primestar subscribers, he said. DirecTv is aiming to shut down Primestar by September or October. Satellite Show Daily Forum Satellite Business News asked a group of the satellite TV’s industry most prominent leaders for their views on several of the industry’s most pressing questions. Each day, The Show Daily will present answers to different questions. Today’s question: What’s been the most important or exciting development in the satellite industry since last year’s SBCA Show? Scott Weiss, Speakeasy Inc.: “Local-into-local has certainly been a huge victory for the industry and leveled the playing field against cable. In addition, digital radio is now a reality and has huge potential in terms of a new, satellite-delivered, subscription revenue opportunity.” Stan Hubbard, Hubbard Media Group: “Local-into-local.” Rik Hawkins, Starpath Satellite: “The launch of local-into-local. We knew this from day one. Who in their right mind ever believed that consumers would go back to a 1950’s technology, the roof-top antenna, that they took down in the 70’s when they went to cable TV. Most retailers who are worth their salt didn’t think so. And we are bullish that local channel access will make cable customers “line up and sign up!!!!” Tom Hayden, Showtime Networks: “The local-into-local breakthrough is certainly the single most exciting development over the last year. Not only has it helped to fuel DBS growth considerably, but it removes the single largest obstacle to purchases of satellite TV. “ Eddy Hartenstein, DirecTv: “While it wasn’t perfect, the passage of legislation last year that allowed us to offer local channels really was a landmark milestone for the industry. With local channels, we now offer consumers a truly competitive offering to cable television.” Leslie Nittler, Starz Encore Group: “Local-into-local legislation getting passed.” continued on page 6 TURN THE PAGE OTHER ISSUES TO LOOK FOR: Monday, July 19, 2000 Wednesday, July 21, 2000   Please direct questions about this site to general.mail@satbiznews.com q 2000 Satellite Business News Inc. All rights reserved.