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1999 Satellite
Broadcasting and Communications Association Show
READ
ALL ABOUT IT!

PAGE 2
Hartenstein Explains DirecTv
NAB Agreement
While he focused most of his keynote address yesterday on the
growth and health of the DBS industry, DirecTv President Eddy
Hartenstein used part of his time on stage to address a topic
of many conversations at the showhis companys recent
agreement with the National Association of Broadcasters on a
framework for satellite TV legislation. It is clear that
there are some in both the broadcast and satellite [TV] industry
that are not pleased by these recommendations, Hartenstein
said. But let there be no mistake, I believe every day
that satellite TV is unable to carry local channels is another
day that satellite TV cannot compete with cable. Hartenstein
repeatedly drove home the need for local-into-local legislation
to help satellite TV companies stay ahead of cable operators
as they scramble to upgrade their systems to a digital platform.
How can the ability to compete head-to-head with cable
now, before digital cable systemsand believe me they willbegin
to proliferate, be bad for the [satellite] industry? Hartenstein
asked opponents of the agreement. Following those comments, John
MacDougal approached Hartenstein on stage and handed him a DirecTv
lapel pin saying, Your company can no longer represent
me, Im sorry. Hartenstein countered saying, Thats
whats great about this industry, theres a passion
involved in it. Thats whats going to make us different.
Thats whats taken us to where we are today.
MacDougal garnered attention in 1986 as Captain Midnight,
when he pleaded guilty to federal charges of illegally jamming
HBOs signal while working at an uplink in Florida. Ironically,
MacDougal was not an authorized DirecTv retailer, DirecTv said.
Hartenstein also refuted arguments that provisions of the NAB
agreement eliminating nondiscriminatory retransmission consent
would keep DBS companies from offering local stations. The
natural tendency of a young industry such as ours may be to look
to the government to do our heavy lifting, he said. I
dont think the government is going to be able to provide
an effective remedy in this case. Im confident that DBS
providers will be able to negotiate fair and reasonable terms
for retransmission consent from the broadcasters. The industry
pressure will be enormous, the political pressure will be enormous
on them. Turning away from the DirecTv-NAB agreement, Hartenstein
said the satellite TV industry is in an early point of
its growth curve and will benefit from a host of new interactive
services and programming offerings. He specifically touted digital
recorders such as TiVo and EchoStar Communications DISHPlayer
satellite receiver as devices that will increase DBS growth
by giving consumers more control over which programming they
watch.
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