Galaxy IV Fails, Cuts Off Pager And TV Traffic

A Hughes/PanAmSat satellite that spun out of control Tuesday, May 19th, cut service off to U.S. pager users and disrupted behind-the-scenes television transmissions across the country.

Galaxy 4 started having problems at about 3:30 p.m. Eastern Time. Galaxy IV's on-board attitude control systems and the switch to its back-up failed, with both Ku-Band and C-Band services ending abruptly at about 6:15 p.m. Eastern Time. The satellite is in a "safe mode" and transponders were deactivated. Engineers from PanAmSat and Hughes Space and Communications, manufacturer of the satellite, are reviewing design information to determine why it failed and see if the bird can be saved.

While they can't control the satellite, which is slowly spinning out of control, engineers cans till communicate with it. It is expected that the satellite will be declared a complete loss..

A spokesman for PageNet, one of several paging companies that had services interrupted, estimated that between 80 percent and 90 percent of all U.S. pager users were affected. The only customers not affected were those whose connections are through ground-based radio transmitters.

Television stations use Galaxy 4 to transmit feeds of advance shows. In addition to syndicated programs, CBS radio and television, the Chinese Television Network and the CNN Airport Channel send feeds through Galaxy 4. CBS apparently switched to the Galaxy 7 satellite during the satellite trouble.

"We are telling our customers to assume that service aboard the satellite can't be restored," he said.

Close to 75 percent of satellite customers impacted by the satellite failure have been switched to other satellites, such as Galaxy III-R located next to the failing bird. Other customers were advised of plans to move C-Band feeds to Galaxy VI, another PanAmSat spacecraft that is being moved to accommodate the loss.

Galaxy IV was launched in 1993, and had a life expectancy of 12 to 14 years. The satellite could cover the Caribbean and United States coast to coast, and was a popular bird for TV and paging customers due to its location at 99 degrees, which would put it just above Kansas.

PanAmSat has 17 satellites, and plans are in place to expand the fleet to 23.

Galaxy IV Outage Impacts Tens Of Millions Of Users

Between 40 million and 45 million pager users had received their messages via Galaxy IV before the satellite experienced glitches. Most pager providers had switched to new satellites or other delivery platforms a day after the interruption of service.

The satellite failure also inter-rupted transmissions that operate bank automated teller machines (ATMs) and fast-pay pumps at gas stations.

Internet services were affected, including Reuters news delivered to America Online. About a third of customers for Hughes Network Systems' DirecPC were cut off when Galaxy IV malfunctioned, but were back online 24 hours later.

National Public Radio said it was unable to deliver programming to affiliates via satellite but continued to broadcast on its Web page.

CNN Airport Network was operating normally on Wednesday morning after the feed from Atlanta to airports around the country were rerouted to the Galaxy III-R satellite.

EchoStar Having Problems With New Echo-4

EchoStar Communications said its fourth satellite launched May 8 is experiencing anomalies in connec- tion with solar panel deployment.

The satellite built by Lockheed Martin was put into geosynchronous transfer orbit on a Russian Proton launch vehicle. Initial data indicates a significant number of transponders probably will not be affected and full recovery remains a possibility, the company said.

A series of maneuvers will be conducted during the next several days to correct the malfunction. The company said it can't yet "quantify the full extent of the anomalies" and no assurances can be given as to the number of transponders that will ultimately be available for use.

In the event performance is diminished, EchoStar may locate EchoStar IV at 148 degrees for local and niche programming, and main-tain its national service at 119 degrees uninterrupted. EchoStar IV was going to replace the company's first satellite at the full-CONUS slot, while EchoStar I was transferred to 148 degrees.

EchoStar has approximately $220 million of insurance on the satellite, and notified its insurance broker regarding the problem. The company said it expects that any significant loss of capacity would be covered by insurance. EchoStar does not maintain insurance for lost profit opportunity.

PT24 Continues Court Fight With Broadcasters

PrimeTime 24's Thomas Casey said his company wasn't dealt a set-back when a Miami-based federal judge slapped an injunction on its delivery of national network signals to satellite subscribers.

And he said the company still plans to fight the lawsuit that originated the preliminary injunction.

The injunction covers the trans-mission of FOX and CBS feeds to satellite subscribers who can get at least a Grade B intensity signal from a local broadcaster. The judge's action resulted from a lawsuit still before the court filed by CBS affiliate stations, CBS, FOX and others.

Loral Skynet gets Fox News/Sports Satellite Contract

Fox News Channel, a division of Fox Television, and Fox News Edge, Fox's affiliate news service, will lease two Ku-Band transponders on Loral Skynet's Telstar 5 satellite to facilitate the expansion of Fox's satellite news gathering efforts in North America.

Fox also renewed its agreement to use Loral Skynet's Telstar fleet of satellites to broadcast Sunday afternoon National Football Con-ference games throughout North America. Fox has used Loral Skynet's Telstar satellites since it won NFL broadcasting rights in 1993. Additionally, Loral Skynet will provide C-Band capacity on Telstar 4 for the distribution of "The Magic Hour," a new nationally syndicated late night talk show hosted by basketball star Earvin "Magic" Johnson that will debut this month.

4DTV Offers Freebies To C-Band Customers

General Instrument is offering free programming to its 4DTV customers from May through Sept. 30.

Ten programmers are particip-ating in the five month deal, includ-ing CBS Eye On People, Outdoor Life Network, and Fit TV.

The deal extends to all existing 4DTV owners as well as new customers who start receiving signals before Sept. 30.

"The addition of these unique channels to 4DTV owners' viewing options shows the programming community's outstanding support for the future of C-Band and adds significant value and choice for C-Band consumers," said Dorian Simpson, national sales manager for 4DTV at GI. "Current 4DTV consumers will be able to take advantage of this offer just by tuning to these channels on satellites G7 and X7."

EchoStar Promotes $89 System/Programming Deal

EchoStar Communications and its DISH Network, which made waves in the DTH industry after dropping the price of satellite receiving equipment to $199 in summer 1996, is now promoting a system deal with programming and installation for $89.

The new sale involves the company's 1000 Series system priced at $149 and the Model 1000 Standalone Receiver for $99. The promotion also provides a free self-installation kit or professional installation for $99 with the purchase of any new system. The purchase of a series 1000 system along with a subscription reduction for America's Top 60 CD and a self-installation kit makes the cost to the consumer $89 to own the system, according to the company.

The new offer expands the company's current Unbeatable Deal promotion and eliminates the need to submit a 1998 cable bill. New residential customers will receive a programming credit - $60 for America's Top 60 or $40 for America's Top 40 - by submitting the required certificate with their first DISH Network statement.

The promotion runs through June 30.

Galaxy's DirecTV Unit Scores PPV Deal With MGM

MGM International Television Distribution, a unit of Metro-Goldwyn-Mayer, entered into a pay-per- view agreement with Galaxy Latin America and its DirecTV unit.

The agreement will allow DirecTV to offer subscribers the latest films from the studio. Movies include the latest James Bond film "Tomorrow Never Dies," with Pierce Brosnan. Additional upcoming films include "The Man In The Iron Mask," starring Leonardo DiCaprio, Jeremy Irons, John Malkovich, Gabriel Byrne, and Gerard Depardieu; "Hoodlum," featuring Andy Garcia, Laurence Fishburne, and Vanessa Williams; and "Red Corner," with Richard Gere.

"MGM was a leading Hollywood name missing from our pay-per-view line-up. As we expand our service to 30 pay-per-view channels, we are pleased to have MGM on board, and we look forward to offering its movies to all of our subscribers across the region," Galaxy President Jose Antonio Rios said.

DirecTV, Superstar Pick Up FOX Sports Direct C-Band Business

FOX Sports Direct won't be involved in the direct distribution of sports networks to commercial and residential subscribers with C-Band dishes after it signed agreements this week with DirecTV and Superstar.

Instead, FOX Sports Direct will supply programming. C-Band customers will receive the networks directly from either satellite provider.

Through the DirecTV deal, nearly 3,000 FOX Sports Direct commercial C-Band customers can convert to DSS and receive a free system and installation. Additionally, DirecTV will offer those C-Band customers who convert 60 days of The Golf Channel and the Commercial Choice programming and the Music Choice package.

"The superior digital distribu-tion system of DirecTV will make each customer more efficient and cost effective. Our regional sports networks, sports leagues, sports bars and restaurants will all greatly benefit from this conversion to DirecTV," said Glenn Gurgiolo, president of FOX Sports Direct. Cable Backing For DTH Provider Forces Justice Suit

The Justice Department said it was PrimeStar's cable support that compelled it to file a civil suit to stop the company's acquisition of satellite assets from News Corp. and MCI Communications.

The civil suit states that the five cable companies backing Primestar "have no economic incentive to use this valuable DBS satellite capacity to steal their own cable subscribers and thus cannot be expected to do so."

"Rather their strategy is to keep this scarce asset out of the hands of any firm that would compete vigorously against their cable operations."

Together, the five cable companies that back PrimeStar serve 60 percent of the nation's 67 million cable TV customers, the Justice Department said. Assistant Attorney General Joel Klein said the only real threat to cable is high-power satellite, and giving a DBS slot to PrimeStar would be a mistake.

"As most Americans know, cable is one of the most powerful and durable monopolies in this country," Klein said. "We have a choice, usually, of one cable company and as a result we are seeing constantly increasing prices that have to be paid in our monthly bills."

High-Power DBS, Others Respond To PrimeStar Block

Following news of the Department of Justice's decision to block the proposed News Corp./PrimeStar deal, DirecTV and EchoStar publicly expressed their accord with the ruling.

DirecTV announced its satisfaction with the Department of Justice's decision, saying, "Clearly the DOJ shares our concern that the concentration of valuable DBS orbital spectrum and programming content in the hands of the largest cable companies would result in anti-competitive behavior."

Charlie Ergen, EchoStar's chairman and CEO, responded that his company was also pleased with the announcement. "It is not in the public interest to give the single piece of real estate in space which is most capable of fostering effective competition to cable to the largest cable and content cartel in the world," he said.

Also lauding the DOJ's block of PrimeStar's 110-degree acquisition were public-interest groups. "This is an important moment for the future of television," said Andrew Schwartzman, president of the public interest law firm Media Access Project. "If cable - through the PrimeStar deal - could have taken a big chunk of the DBS market away from independent companies ... they may not have made it."

DirecTV Gets Time-Shifted "Days of Our Lives" For PPV

DirecTV has signed an agreement with Columbia TriStar Television to offer time-shifted airings of the soap "Days of Our Lives" seven days a week via pay-per-view and through monthly subscriptions.

Commercial-free, time-shifted airings of "Days," NBC's highest-rated daytime drama, began May 18. DirecTV will broadcast each episode every night to coincide with NBC's current daytime broadcast. It is the first time that "Days Of Our Lives" fans will have the option to see their favorite daytime drama, shown in sequence, during weekday evenings and on the weekend.

"DirecTV is thrilled to be the first broadcasting service to offer a daytime drama series in the evening, making it easier for thousands of 'Days Of Our Lives' fans to stay in tune with their favorite soap," said Stephanie Campbell, senior vice president of Programming. "This groundbreaking broadcast will create the opportunity to expand the fan base of this already incredibly popular program."

Individual episodes will be available for $1.49 and will air on channel 199. It will be available Monday through Friday from 8:00 p.m. to 6:00 a.m. Eastern Time. Monday through Friday episodes will air in sequence beginning at 6:00 a.m., 11:00 a.m., 4:00 p.m., 9:00 p.m. and 2:00 a.m. on Saturdays and Sundays. A monthly subscription will be available for $9.99.

PrimeTime 24 Slapped With Injunction Over DBS National Network Feeds

A federal judge in Miami issued a preliminary injunction against PrimeTime 24 preventing the national network provider from de-livering broadcast feeds to satellite subscribers across the country who are ineligible to receive the signals.

The injunction from Judge Lenore Nesbitt covers the transmission of FOX and CBS feeds to satellite subscribers who can get at least a Grade B intensity signal from a local broadcaster. The judge's action resulted from a lawsuit still before the court filed by CBS affiliate stations, CBS, FOX and others.

PrimeTime 24 had no immediate response to the court's action.

According to National Association of Broadcasters President Edward Fritts, the ruling "represents a great step forward for localism and free over-the-air television.

"For years, PrimeTime 24 has illegally provided distant network programming to DBS customers who by law should receive this programming from their local station affiliates," he said. "The net effect has been that local stations are being bypassed in favor of distant network programming.

"The federal court in Miami has now indicated the time has come for PrimeTime 24 to obey the law."

According to the NAB, The judge's action also applies to DirecTV and EchoStar, two DBS providers that carry PrimeTime 24 programming.

DirecTV spokesman Bob Marsocci said the satellite provider "is not a party to the lawsuit, but we will work with PrimeTime 24 to ensure full compliance with the conditions of the injunction."

EchoStar wasn't available for comment.

Global DBS Summit '98 Comes To Denver

On June 14-16, 1998, the fifth annual Global DBS Summit, "Ticket to Ten Million," will come to Denver, CO.

The Global DBS Summit will feature 24 panels and presentations by more than 66 global DBS experts. An opening session on Tuesday, June 15, will discuss "Digital TV Strat-egies" with EchoStar's Charlie Ergen, Encore's John Sie, Loral's Dr. Greg Clark, and Capitol Broadcasting/Local TV's Jim Goodman.

The DBS Summit will also host the fourth annual DBS Inny (Innovator's) Awards during the June 16 Summit luncheon.

HBO Sets HDTV Format

HBO said it will use the 1080 interlaced format to transmit two HDTV channels, one an east coast feed while the other a west feed of the company's main programming service expected to debut in early 1999.

"Quality has always been a focal point for us. It's what consumers expect from HBO," Robert Zitter, senior vice president of technology at HBO, said. "After a thorough evaluation of the HDTV formats, we feel that 1080 interlaced simply offers the best quality. It will be compatible with all early HDTV television sets, and since the early adopters of HDTV will most likely be today's HBO subscribers, it makes even more sense for us to go with this format."

Theatrical and HBO-produced motion pictures, which make up about 70 percent of the network's schedule, will be offered in HDTV. HBO's other original programming will be offered in the HDTV format as the base of HDTV households grow, the company said.

HBO Brings Seinfeld Live This Fall

On August 9, HBO will debut its comedy special with a live stand-up performance by Jerry Seinfeld. The special - "Jerry Seinfeld Live: I'm Telling You for the Last Time" - is Seinfeld's second live performance for HBO and will feature some of his classic material.

ESPN2 Covers World Cup '98

ESPN2 will cover World Cup '98 events from June 10 to July 12. Along with 23 matches, ESPN2 will show the World Cup 2Night program which is hosted by Dave Revsine and Phil Schoen. Together, ABC, ESPN and ESPN2 will present live coverage of all 64 matches.