EchoStar and OpenTV Announce Plans for First Deployment of Expanded
Interactive Television in the United States
10/14/98
Business Wire
(Copyright (c) 1998, Business Wire)
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 14, 1998--OpenTV Inc., the leading provider of operating system technology for digital interactive television, and EchoStar Communications Corp. (Nasdaq:DISH) (Nasdaq:DISHP), whose DISH Direct Broadcast Satellite (DBS) Network serves more than 1.5 million subscribers in the United States, Wednesday announced a seven-year agreement to provide interactive television services in the U.S.
This represents the first deployment of interactive TV services to the entire U.S. market via an alliance with a major, direct-to-home satellite provider. Under the terms of the agreement, EchoStar will license and deploy OpenTV's technology and software with EchoStar's digital set-top boxes, which will be available to EchoStar's DISH Network subscribers beginning in the summer of 1999.
With more than 1 million homes currently using its platform for interactive television outside the United States, OpenTV has established a leadership position in Europe.
OpenTV's flexible software technology has enabled the company to develop a varied list of partners, including 15 digital cable and satellite television operators, 24 set-top box manufacturers, four conditional access providers, seven chip-set vendors and dozens of content developers and service providers.
"We believe that interactive television is not simply 'the Internet on your TV,'" said Jan Steenkamp, CEO of OpenTV. "EchoStar's DISH Network is the ideal medium for the first U.S. deployment of truly interactive services for people who enjoy watching television. Further, digital interactive television will be available to any consumer in the U.S. immediately, without lengthy negotiations with multiple television operators.
"The key to our success is an open and flexible software design that can 'fill the gaps,'" Steenkamp continued. "We can work with virtually any cable, satellite or terrestrial television operator and set-top box manufacturer to provide an end-to-end solution. This is why we are uniquely positioned to bring expanded digital interactive services to the entire U.S. television market."
"By being the first in the U.S. to offer interactive television, we provide greater value to our customers who want more from their television experience," said Charlie Ergen, chairman and CEO of EchoStar Communications.
"OpenTV's platform is flexible and cost-effective to deploy, while generating new revenue streams for EchoStar and the content providers who use our service. In addition, OpenTV's technology allows us to offer the interactive services which help us to further differentiate ourselves from our competitors."
During the first year of deployment, OpenTV's software platform will enable DISH Network to offer its subscribers a variety of enhanced television services. OpenTV's platform will enable services such as an interactive electronic program guide, e-mail and Internet access for television, weather forecasts on demand and a variety of e-commerce services, including home banking and music merchandising.
New television services will be added to EchoStar's DISH Network each year for the balance of the term of the agreement.
About EchoStar Communications
EchoStar Communications includes three interrelated business units:
-- DISH Network, EchoStar's state-of-the-art DBS system, which
offers customers more than 300 digital video and CD-quality audio
programming options, fully MPEG - 2 /DVB compliant hardware,
installation, financing and leasing.
-- EchoStar Technologies Corp. (ETC, formerly HTS - Houston Tracker
Systems Inc.) designs, manufactures and distributes DBS set-top
boxes, antennae and other digital equipment for the DISH Network
and various international customers, including Express Vu Canada
and Telefonica's Via Digital system in Spain. ETC also provides
uplink center design, construction oversight and project
integration services for customers internationally.
-- Satellite Services provides the delivery of video, audio and data
services to business television customers and other satellite
users. These services include satellite uplink, satellite
transponder space usage and other services.
The DISH Network currently serves more than 1.6 million customers. DISH Network is located on the Internet at: www.dishnetwork.com.
About OpenTV
OpenTV is the world's leading software solution company for interactive television, providing the key components for the development and delivery of interactive services and content to digital satellite, cable, terrestrial broadcast and other video delivery services worldwide.
OpenTV provides the only truly open digital platform for the rapid delivery of interactive television services, and its software platform is already deployed in more than 1 million homes around the world.
OpenTV provides digital interactive television products to leading media companies and television broadcasters -- including British Sky Broadcasting and British Interactive Broadcasting in the United Kingdom; Television Par Satellite, France Telecom Cable and Cable Lyonnaise in France; Telia in Sweden; TeleDanmark Kabel in Denmark; ViaDigital/Telefonica in Spain; FreeTV/ARD in Germany; Stream in Italy; and Multichoice in Greece, South Africa and the Middle East.
OpenTV is a member of the Digital Video Broadcasting (DVB) project and a licensee of Personal Java from Sun Microsystems.
OpenTV's headquarters, located in Mountain View, covers the North American, Latin/South American and Asia/Pacific regions, while the company's European headquarters, based in France, supports Europe, the Middle East and Africa. Information about OpenTV is available at www.opentv.com.
Note to Editors: DISH Network is a trademark of EchoStar Communications. HTS is a trademark of Houston Tracker Systems.
CONTACT: OpenTV Inc., Mountain View
Mary Montes, 650/429-5556
650/237-0804 (fax)
mmontes@opentv.com
or
EchoStar Communications Corp.
Judianne Atencio, 303/723-2010
303/723-1999 (fax)
judianne.atencio@echostar.com
or
Miller/Shandwick Technologies
Dayna Verstegen, 650/596-5807
650/610-6900 (fax)
dverstegen@miller.shandwick.com
or
International Data Corp.
Sean Kaldor, 650/962-6428
skaldor@idc.com
or
Forrester Research Inc.
Josh Bernoff, 617/497-7090
jbernoff@forrester.com
10:33 EDT OCTOBER 14, 1998
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