====================================================================== DISHCETERA - THE SATELLITE TV NEWS ON-LINE MAGAZINE ====================================================================== ---------------------------------------------------------------------- Volume 1 - Issue #4 (C)Copyright 1989 January 25, 1989 ---------------------------------------------------------------------- ---------------------------------------------------------------------- This entire newsletter is copyrighted (C)1989 by J.M. Dolan. You may freely copy and distribute this newsletter as long as it is distributed in whole and without any changes of copy or content, and without any deletions or additions, and without any format re-arrangement or alterations. Bulletin Board Systems may post this material without any changes and may echo this newsletter in whole as individual message packets where necessary, so long as the entire newsletter is transmitted and is then posted together. DISHCETERA makes no warranty or guarantee of accuracy for any of the information or material contained herein. Reasonable effort has been made to verify all information and DISHCETERA will not knowingly report false information. All the information contained in DISHCETERA has been obtained from various industry news sources, trade publications, K-Sat Broadcasting, and/or press releases. The editorial opinions of DISHCETERA do not necessarily reflect or express the editorial opinion or viewpoint of the Bulletin Board System where this newsletter is posted or displayed. Your comments or complaints are welcome at DISHCETERA, and will be studied with interest, and should be directed to: J.M. Dolan, Post Office Box 189, Bellaire, Texas 77402-0189 or via your computer to any of the nodes listed at the end of this issue. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 1. E.S.P.N. GETS ALL CABLE BASEBALL GAMES FOR 4 YEARS 2. CABLE SAYS 101ST CONGRESS WILL BRING NOTHING NEW 3. G.I. TO TURN OFF ALL THE PIRATES . . . . WELL, MAYBE 4. COMMERCIAL PIRATE IN MILWAUKEE RAIDED 5. PRESIDENT BUSH ASKS DENNIS PATRICK TO STAY AT FCC 6. NETWORKS & INDEPENDENTS BASH CABLE TV 7. LOOKING BACK ON THE 10TH ANNUAL A.C.E. AWARDS 8. GROUP W AND TCI GO AFTER COMPETITORS IN CHICAGO 9. F.C.C.'S MIND HAS BEEN CHANGED ON TELCO CABLE TV 10. GAMBLING VIA SATELLITE COMING HOME SOON 11. MTV SETTLES ANTI-TRUST LAWSUIT WITH HIT VIDEO USA 12. CABLE TV REVENUES TO CLIMB 14% IN 1989 13. CBS TV NETWORK TO BE SCRAMBLED FULL-TIME BEFORE SUMMER 14. CABLE TV OPERATORS PROTECTED FROM COMPETITION IN 5 STATES 15. BOTH DBS GROUPS PREDICTING 1 MILLION HOME DISHES THIS YEAR 16. RENO SATELLITE DEALER SHOW ANNOUNCED FOR FEBRUARY 17. RCA HOME VIDEO JOINS THE MACROVISION GROUP 18. G.I. REPORTS PAY AUDIO SELLS GREAT - CABLE CO. SAYS NO 19. HOW MUCH DOES SATELLITE TV PROGRAMMING COST CABLE TV 20. PLANELOAD OF VIDEOCIPHERS SEIZED AFTER CRASH IN LAREDO * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ************************* 1. E.S.P.N. GETS ALL CABLE BASEBALL GAMES ************************* The ENTERTAINMENT & SPORTS PROGRAMMING NETWORK (E.S.P.N.) has won the cable tv rights to all Major League Baseball games for the next four years and for a mere $400,000,000. And, no price increase to cable tv operators currently carrying the service. Don't confuse this deal with the deal CBS made. They agreed to pay one billion dollars to broadcast 12 games per year. E.S.P.N. is planning to braodcast 175 games per year. It seems like somebody made a really bad deal! Reportedly, E.S.P.N. will broadcast 25 double-headers on Tuesday nights, 26 double-headers on Friday night, 24 Sunday night games, and 25 Wednesday night games. In addition, they will broadcast at least one half hour of baseball highlights everyday, several games on Labor Day and Memorial Day, as well as, All Star and World Series Specials. If you happen to be a regular viewer of E.S.P.N. and some fifty million cable tv homes are, I'm sure that you will appreciate this influx of new programming. It sure beats the cross-country oxe-cart race, the lords-a-leaping contest, and the college cheerleader jump & jiggle-off. The superstation baseball contracts are not altered. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ********************** 2. 101ST CONGRESS TO BRING NOTHING NEW ********************** The National Cable Tv Association is already reporting via their spokesman John Wolfe, that the 101st Congress will pass no anti-cable legislation this session. Does this mean that the "fix is in?" * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ********************* 3. G.I. TO TURN-OFF ALL THE PIRATES ********************* Those great guys with the "pirate-proof" box are finally going to turn-off all the pirates. Well, . . . maybe, . . . . sort of. . . . OK, you're probably thinking this story should appear on April 1, but General Instruments is really planning to "try" to turn-off the pirates on March 6, so here goes. Last year Warner withdrew all their movies from pay-per-view and they cited the reason as lack of security with G.I.s Videocipher II encoding system. On March 6, Warner is producing and distributing the Ray "Boom Boom" Mancini vs Hector "Macho" Camancho pay-per-view boxing event from Reno. Warner is marketing the pay-per-view fight using the VC II to protect its transmission. President of Warner Pay TV Ed Bleier said, "a lot of things have changed since then. To a very large extent, this is a test of General Instruments." Mr. Bleier is right. A lot has changed, more than half of all VC II's are defeated. A year ago, the figure was much lower. For my self, I watched the "Royal Rumble" the other night on Galaxy 3-#2 at no charge and everything seemed ok. The only problem I had was with their audio being several seconds ahead of the video. However, after the intermission, that problem had been corrected. I assume that it was a problem with their local loop and not with the VC II. Oh, I almost forgot, General Instruments is planning an extensive anti-piracy campaign in connection with the March 6th event. Their "plan" is to hire 450 private investigators and have them hang-out in bars seeking persons engaged in illegal activities. Mr. Dunham, I don't know what they call that sort-of conduct in California, but in Texas we call it "pandering". As for turning off the pirates, they will employ "electronic counter-measures" again. You and I know, if these so-called elctronic counter-measures actually worked - all the pirates would have been turned-off a long time ago. They probably will turn off the few remaining legitimate subscribers. I wonder why their use of electronic counter-measures didn't shut-off my viewing of the "Royal Rumble?" If anyone using a VC II did get turned-off the other night, how about giving me a call or leave me a message. I don't want to know your name or id number but I would like to know your VC II's revision number and the zip code where it's authorized. It seems very strange that I only hear from legitimate VC II owners being turned-off. It may be an isolated situation, but everywhere I look I find commercial properties receiving everything for free and none of them are being turned-off. (See the next story for an exception.) * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ************************* 4. COMMERCIAL PIRATE IS RAIDED IN MILWAUKEE ************************* On November 4, 1988 in Milwaukee, Home Box Office accompanied by United States Marshals, raided the offices of the Entertain-U Corp. Various business records were seized along with several Videocipher II descramblers. On January 5, 1989, Home Box Office was granted a temporary restraining order against the Entertain-U Corporation and it's president, Gerald M. Walters. The order prohibits the use of any altered Videocipher II descramblers to receive unauthorized HBO programming pending the outcome of HBO's lawsuit. According to HBO, Mr Walters purchased an un-specified number of VC II's and modified them to intercept HBO and other pay services without payment. These modified descramblers were then sold to an un-specified number of hotels and motels in New Mexico and Arizona. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *************************** 5. PRESIDENT BUSH ASKED DENNIS PATRICK TO STAY *************************** Chase Untermeyer, assistant to the President-elect for personnel, has extended Mr Bush's request for the current F.C.C. Chairman Dennis Patrick to remain at his post. Patrick's position has been in doubt for some time although he has repeatedly denied that he was leaving the agency. Mr Patrick was a "temporary" appointment in the fall of 1983. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ****************** 6. COMMERCIAL TV BASHES CABLE ****************** The network television stations and the independent television stations have a couple of things in common. a. They don't like cable tv - unless they're carried on it, and b. Only on their original tv channel number designation, or in the case of uhf stations, on a lower vhf number, and c. Imported distant stations programming must not conflict with their "exclusive" programming, and d. Their advertising customers shouldn't be sold cable tv ads. Commercial tv says the same thing cable tv says, we support competition as long as they don't compete with us. Recently, CBS and ABC have both made anti-cable presentations to their advertising clients. The basic premise has been: "What Cable Promises - The Networks Deliver." Statistics have been presented showing that the audiences for cable tv ads are highly inflated and are a waste of advertising budgets. Needless to say the cable industry has been crying "foul." Many cable companies have secured local advertising usually carried by the independent stations. And, in some cases, the independent stations have been dropped. The independents have launched a campaign to convert advertisers from cable tv to their stations and seek must-carry legislation in Congress. Rep. John Dingell told attendees of the Independent TV Stations convention in Los Angeles recently, "Cable is now completely unregulated and functions in a way that suits itself. Either regulation must take place or competition installed." Mr Dingell described free tv as "one of our greatest bargains." He will work to get must-carry passed this year. Jim Mooney, president of the National Cable TV Association, spoke before the Washington DC Cable Club on January 11 (which dish owners have seen repeated no less than 23 times on CSPAN) and addressed his remarks towards the independent broadcasters. Mr Mooney said he would be happy to meet with them and work-out a must-carry agreement as soon as Congress told him to. Mr Mooney went on to say that it "would be catastrophic to this country's democratic values to have only one principal provider of news, information, and entertainment to the home." Mr Mooney also stated that the "average" cable tv subscriber pays $16.95 per month for 36 channels of service. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ********************** 7. LOOKING BACK ON THE A.C.E. AWARDS ********************** Well, the 10th? annual A.C.E. awards show was held the other evening on almost every channel. The were all sorts of awards for all sorts of "made-up" categories. The company that poured the most money into this program and nominated itself the most times, and then selected itself the winner the most times....came out with the most A.C.E. awards. WOW! What A Surprise! My weekly Variety hasn't arrived yet so I don't know how the ratings looked for that evening yet. I'll venture a guess that the network and independent stations did better than usual that night. I just can't get too excited about a show that gives awards for program excellence when The Weather Channel is up for the "Golden Ace." * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ***************** 8. GROUP W GOES AFTER SMATV ***************** In Chicago, Group W Cable and Chicago Cable TV/TCI, both have non-exclusive franchises to serve Chicago. Recently, they have noticed that another company, 21st Century, a SMATV serving hotel subscribers in the Chicago area, is sending their signal via lines leased from Illinois Bell Telephone. They have complained to the City of Chicago and the city has cited 21st Century for operating without a franchise. 21st Century claims that they are a SMATV and don't need any franchise to operate. A SMATV is a satellite master antenna tv system that usually installs a satellite dish or dishes at hotels and apartment projects and then serves only those tenants without crossing public streets. In most states, you need permission from the city to cross over or under the streets. In this case, the Illinois Bell Telephone Company has such a franchise and has leased their lines to 21st Century. All phone companies do this, they lease lines to cable tv, alarm services, data communications providers, etc. You don't need a franchise to do this. The city is now being sued by 21st Century due to pressure from the cable tv companies to pursue this matter. The only purpose of the city's complaint is to stop competition for their cable tv companies. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *********************** 9. FCC'S MIND CHANGED ON TELCO CABLE TV *********************** One of the F.C.C.'s primary objectives this year was to allow the telephone companies to begin providing enhanced information services in their local service area. (cable tv) Needless to say, the cable tv industry has been telling everyone that cable tv currently has lots of competition. There is no need for telephone companies to get involved. Until a few days ago, the Reagan Administration, Department of Justice, the N.T.I.A., and all three of the F.C.C. commissioners, all agreed on this objective. Then, Commissioner Diaz expressed concern about letting the phone companies in. The N.T.I.A. changed their position after heavy lobbying by the cable tv industry. Now, Commissioner James Quello ia also against competition for cable tv by the telephone industry. Only Chairman Dennis Patrick is still in favor. Mr Quello claims that allowing telephone companies to compete with cable tv operators would harm broadcasters and put an end to "free tv." * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *************************** 10. GAMBLING VIA SATELLITE COMING TO HOME DISHES *************************** A group of Las Vegas area businessmen and attorneys have started a service to be known as The Gaming Network. The service is to be delivered via a Ku band transponder beginning in the first quarter of 1989 thru an uplink station now being constructed. The service will offer all original programming to cable tv and home dish owners consisting of entertainment and gambling related features. The F.C.C. has issued the service a common-carrier license said John Locke, a company spokesman. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *************************** 11. MTV SETTLES ANTI-TRUST LAWSUIT WITH HIT VIDEO *************************** Three years after filing an anti-trust lawsuit against MTV, Video Hits USA has announced its settlement. The terms were un-announced. Hit Video USA started as an alternative to MTV by Connie Woodlinger of Houston Texas. From the start, most cable tv operators refused to carry the service citing exclusive service contracts with MTV Networks. (Viacom Networks.) These contracts precluded the cable tv operator from carrying more than one music video channel on their systems unless it was MTV's sister service, Video Hits One. In addition, MTV contracts with music video providers also were exclusive service contracts and Hit Video USA found that it was almost impossible to buy music video programming. In 1987, Woodlinger left the cable tv business and now serves as a provider of music video programs to broadcast stations. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *********************** 12. CABLE TV REVENUES TO CLIMB 14% IN 89 *********************** The United States Department of Commerce is reporting that the revenues in the cable tv industry are expected to climb at least 14% in 1989 to $14.5 billion. The revenues from basic service are also expected to climb 15% to $7.7 billion and premium revenues will "improve slightly" to $4.5 billion according to the 556 page Commerce Department report. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ************************ 13. CBS TV NETWORK WILL SCRAMBLE FULL-TIME ************************ The CBS Television Network has now confirmed that they will be scrambled full-time on all their Telstar 301 & 302 circuits no later than March 15, 1989. All of the necessary General Instruments VC I decoders have been installed and are ready to go. CBS says that they have no plans to serve anyone other than their affiliates. The VC I decoders cost nearly $3000. (If I can't watch The Bold & The Beautiful unscrambled at 2am each morning, they'll lose me as a viewer.) * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ********************************* 14. CABLE TV OPERATORS PROTECTED FROM COMPETITION IN 5 STATES ********************************* During 1988, cable tv operators in four states sought and received protection against any competition in their service areas. Illinois, Minnesota, Tennessee, and Oklahoma joined Florida, which passed similar legislation in 1987. California passed the law but it was vetoed at the last minute by the Governor. These so-called "overbuild protection" laws guarantee the existing cable tv operator will not be joined by any competitor due to restrictions placed on all new, would-be competitors. In Minnesota for example, in order to compete with an existing cable tv company, it would be necessary for the new company to offer fiber optic systems, many additional channels, performance bonds and other cost-prohibitive items not required of the original company. In Tennessee, the law prohibits electric co-ops from owning any cable tv systems or selling programming to anyone other than rural dish owners. The cable tv industry will be proposing similar legislation in every state at the earliest possible date. You should contact your State Representatives as soon as possible and alert them to watch-out for such legislation and to work against its passage. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *********************************** 15. BOTH DBS GROUPS ARE PREDICTING 1 MILLION DISH HOMES THIS YEAR *********************************** In case you have been living under a rock and haven't heard about DBS (direct broadcast satellite), two firms plan on 1 million home satellite dish receiving systems by the end of their first year. This is the long-awaited, low-cost, consumer friendly and user installable - 18 inch home satellite receiving system. For a mere $350. (U.S) you can go to your nearby tv shoppe and purchase the dbs package. Currently, you have a choice of either Rupert Murdock's Sky Channel service which starts February 4, 1989 or BSB (British Satellite Broadcasting) which is slated for a September start-up. Both packages include the 18" dish, satellite tv receiver and the necessary decoder for that particular service. There is a hitch with the decoder. (Bet you have heard that before.) The two companies are using uncompatible systems. Murdock's got the PAL version of the Scientific Atlanta BMAC and BSB using an off-shoot of the BMAC but with General Instruments software. (What a great choice!) The Sky Channel is using the Astra (medium power) satellite just placed in its orbital position last month. Murdock's service is starting up with six channels consisting of Sky News, Sky Movies, Sky Arts, Sky Channel, Eurosport Channel, and a Murdock-Disney joint-venture, "Disney" type channel. Also included are the Lifestyle and Screensport Channels owned by William H. Smith Bookseller. An "MTV" type channel owned by Robert Maxwell and Viacom will complete the initial package. Five other channels are available on that satellite for other services to join-up. At this time, only FilmNet, a Swedish-owned movie channel is expected to participate. Meanwhile, a few degrees across the sky, the BSB package is being put together. Now, a news & current affairs channel, Galaxy, a mix of lifestyle and women's channel, and a pay movie channel - The Movie Channel. Granada and Anglia TV are partners in another up-coming service proposed to join BSB next year. To date, BSB has only the three channels to offer. Although it would seem that BSB is doomed with such a small group of channels to offer, BSB predicts that one million DBS systems will be sold and installed during the first year of operation. Murdock is also planning on one million subscribers the first year. It will be interesting to see how Rupert Murdock does considering how his Fox TV Network has done in this country. (Now you know where those thousands of systems being sold each month are really going - Europe) * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **************************** 16. RENO SATELLITE DEALER SHOW TO BE HELD IN FEB. **************************** A satellite tv show for dealers and distributors is set for Feb. 13, 14, and 15 at Bally's Casino Resort in Reno, Nv. The cost for dealers attending is $5. at the door. The show is being supported by K-Sat Broadcasting, the U.S.I.A. and H.S.T.A. Some of the companies exhibiting their products at the show are: STS of California Chaparral Communications STV Weekly Satellite Home Entertainment Orbit Magazine Signal Sources Panasonic Phantom Engineering Toshiba America Echosphere Corporation OnTop Systems Houston Tracker Systems Lee Hadlock Recreational Sports & Imports J.J. International Apex Ajax Industries Netlink USA Paraclipse Gardiner Communications A special room rate for dealers attending the show is available by calling Bally's at 800-648-5080. More information on the show, as well as, a special air fare available from American Airlines, may be obtained by calling Tom Burke at 501-982-2552. If you're only going to attend one satellite tv trade show this year - this is the one. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ************************** 17. RCA HOME VIDEO JOINS THE MACROVISION GROUP ************************** In order to prevent the unauthorized duplication of pre-recorded videocassettes, RCA Home Video has announced that they will join the Macrovision group as soon as possible. Macrovision, is a system used on videocassettes to prevent the casual viewer from making unauthorized copies. When the Macrovision signal is incorporated into the duplication process, the cassettes contain a signal which not affect the playback of the protected tape. However, when you try to make an unauthorized copy, the Macrovision signal will confuse the automatic gain control circuits in the vcr recording the encoded tape. On consumer vcr's, this may be observed as a flashing from bright to dark when the unauthorized tape is re-