To: John Rieman who wrote (35101 ) 8/11/1998 1:15:00 PM From: DiViT Respond to of 50808
Hughes signs deal with Thomson for satellite TVdailynews.yahoo.com EL SEGUNDO, Calif. (Reuters) - Hughes Electronics Corp. unit DirecTV Inc said Tuesday it has signed a long-term satellite television pact with Thomson SA unit Thomson Multimedia to develop services. The company said in a statement the pact covers the development and distribution of advanced direct broadcast satellite (DBS) receivers and the integration of DirecTV reception capability in Thomson digital televisions. As part of the alliance it is expected that DirecTV, will take a minority interest in Thomson Multimedia, have one seat on its board of directors, and also sit on a newly formed strategic committee of Thomson Multimedia. "This agreement is a natural extension of DirecTV's long-standing and successful relationship with Thomson in the deployment of a wholly new form of digital home entertainment," said DirecTV President Eddy Hartenstein. "The strengthened partnership will allow for the rapid introduction into the market of new and innovative interactive services and platforms." The two companies hope to enhance the capabilities of DBS receiver technology to enable new services and accelerate the launch of new products. The partnership will initially concentrate on the U.S. domestic market and later seek out opportunities in Latin America, Europe and Asia. The two companies have agreed to jointly design and develop a new cost-competitive, entry-level DBS receiver platform which will include new interactive services such as data enhanced video and electronic commerce. Higher-end advanced products are also planned including products aimed at accelerating the introduction and consumer acceptance of digital terrestrial television. Thomson Multimedia is the fourth largest consumer electronics company in the world and makes TV sets, VCRs, camcorders, stereos, digital decoders and DVD players. The company has the largest market share in the United States and is the third such firm in Europe. DirecTV's 185-channel service is the leading digital TV service in the United States, with more than 3.8 million subscribers, and also offers service in Latin America and Japan. (Reuters/Wired)