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Technology Stocks : Echostar Comm.
SATS 69.47-0.4%2:00 PM EST

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To: Dom Sartorio who wrote (521)12/22/1997 11:18:00 PM
From: John J. Thrall  Read Replies (2) of 1394
 
Your mention of the new sports package is important, and that package should provide a good test for the companies marketers.

If marketed correctly, the new sports package could present a great oppurtunity for market share. The sports programming is Echostar's biggest weak point. Before you could only get the FOX or ESPN regional sport network that was in your area, wheras DIRECTV/USSB offered a multichannel package. With these 14 regional channels available for 4.99, who needs Sunday ticket or NBA pass. This sports package and Encore/Starz were the only mainstream programming differentiation that DTV/USSB had.

The only advantage to go to the DTV/USSB now are more PPV movie channels (50+ to 10), and maybe the playboy channel (which I suspect is a cash cow for USSB). It seams that in the neat term, the capacity in E I and EII will provide the bandwith to compete in mainstream programming. This leaves EIII to be used only by businesses/schools and other special case individuals to buy business/educational programming and maybe Internet access (compete head on with DIRECPC), in which case a second dish might be acceptable.

Regards,
John Thrall
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