To: DiViT who wrote (40180 ) 4/27/1999 8:23:00 PM From: John Rieman Respond to of 50808
Those recordable boxes with Sony Encoders aren't shipping on time.........................cableworld.com EchoStar and WebTV Unveil Joint Set-Top Box Companies aim to get a jump into expanding personalized TV market BY ALAN BREZNICK Getting the jump on DBS rival DirecTV Inc. and the cable industry, EchoStar Communications Corp. teamed with Microsoft Corp.'s WebTV Networks last week to introduce a new digital satellite receiver that will allow viewers to access the Internet over their TV sets, pause running TV programs, record shows and download video games. Staging a demonstration at the National Association of Broadcasters convention in Las Vegas April 19, EchoStar said the high-end DBS set-top box will start shipping to distributors next month. The digital set-top, dubbed DishPlayer, is expected to sell for $499. EchoStar subscribers will pay an extra $24.95 a month for WebTV's Internet TV service. With the new set-top, EchoStar will join the expanding field of Internet TV players. WebTV, the leader in the market, has nearly 800,000 subscribers and is shooting to approach 2 million by the end of the year with EchoStar's help. But a growing number of rivals, including America Online Inc., @Home Network, Road Runner and WorldGate Communications Inc., are also making or planning forays into this market. Just last week, for instance, the San Jose Mercury News reported that AOL has lined up two consumer electronics manufacturers, Philips Consumer Electronics and Hughes Network Systems, to build set-top boxes for its proposed AOL TV service. Sources say AOL is also negotiating with DirecTV and EchoStar to provide a high-speed data service to DBS subscribers over the TV set. "AOL has been looking at this platform for several weeks, if not months," said Jimmy Schaeffler, publisher and senior analyst of DBS Investor. AOL and DirecTV have denied the reports but DirecTV president Eddy Hartenstein has hinted that some type of interactive TV deal is in the works. EchoStar and WebTV are also moving into the new "personalized TV" market by offering a box that can pause live TV programs and, in a few months, record several hours of digital programming. Two Silicon Valley startups, TiVo Inc. and Replay Networks Inc., have just started introducing somewhat more sophisticated "personal video recorders" after months of delays. "The fortunes of TiVo and Replay are taking a hit because of the delays," Schaeffler said. "It's going to give another advantage to EchoStar." EchoStar and WebTV declined to project how many boxes they might sell this year. But they clearly intend to make a big push for the DishPlayer receivers this summer and fall. In related news last week, EchoStar also introduced three new channels for its planned "convergent service," slated to debut on TVs and PCs later this year. Launch Media Inc. and RollingStone.com will supply music and entertainment, while SuperMarkets Online Inc. will provide coupons and recipe rebates. (April 26, 1999)