To: DiViT who wrote (29042 ) 2/3/1998 9:28:00 AM From: Brad Rogers Read Replies (1) | Respond to of 50808
Satellite Firm Offers Area's Local Channels By Paul Farhi Washington Post Staff Writer Tuesday, February 3, 1998; Page D02 From their inception, satellite TV broadcasters offered viewers both more TV -- and less. While their small dishes can pull in as many as 200 channels, they've been unable to offer local broadcast stations, the most-watched channels on the dial. That has left cable companies -- which offer both local and national signals -- with a distinct marketing advantage. But cable's edge may be dulling just a little bit. One of the major players in the direct-broadcast satellite (DBS) business, EchoStar Communications Corp., last week began marketing local-channel service in the Washington area and five other metropolitan areas, for $4.99 a month. The Colorado-based company thus becomes the first to retransmit the signals of local stations to dish owners. EchoStar, which markets its TV service under the Dish Network brand name, will offer four local stations as an add-on to its basic package of 40 channels. The stations include the local affiliates of the four leading broadcast networks: WJLA, Channel 7 (ABC); WRC, Channel 4 (NBC); WTTG, Channel 5 (Fox); and WUSA, Channel 9 (CBS). "The biggest drawback to satellite TV has been the lack of" local service, said Judianne Atencio, an EchoStar spokeswoman. "Eight of 10 [potential] customers have walked away once they found out they couldn't get their local stations." In fact, cable companies have seized on that fact in TV commercials to convince their customers not to drop cable in favor of a satellite dish. Until now, dish owners who wanted local news, weather and sports had to either keep their basic cable service or install rooftop or set-top antennas to pull in shows from local stations. About 6.3 million households have DBS receivers, although many retain limited cable service as well. Jimmy Schaeffler, an industry analyst with the Carmel Group, called EchoStar's new service "a big risk," given that providing local channels will use up expensive satellite capacity. It's not clear, he added, that the offering is "robust" enough for consumers because it doesn't include all of the local broadcast stations in a market. There are other caveats to the local service offer as well. By law, EchoStar may sell the package only in so-called "white areas," generally outlying portions of a metropolitan area where local signals are weak or nonexistent. The law is designed to protect the copyright interests of local broadcasters. EchoStar said it will sell the local package only in Zip codes where over-the-air signals are "unacceptable." But some observers say it will be hard to stop consumers who don't live in these areas from getting service. "This is a quagmire," said Bob Scherman, publisher of Satellite Business News. "Enforcement is impossible." For this reason, the broadcast industry's main lobbying group, the National Association of Broadcasters, opposes EchoStar's local service. The NAB wants the company to carry all of the broadcast stations in a market -- as cable companies do -- or negotiate with each of the stations individually for the right to carry their broadcasts. EchoStar responds that it doesn't have sufficient capacity to handle all stations. In addition to the Washington area, it is offering limited local service in Boston, New York, Chicago, Dallas and Atlanta. c Copyright 1998 The Washington Post Company <Picture><Picture: Navigation Bar><Picture: Navigation Bar> ÿ