Changes coming in TV land........

[Jim Wilke]

I sent this to a friend of mine so I didn't bother with the links but everything here is accurate:

I'm not sure how this will affect the racing world but a couple of developments in the past few weeks are worth watching; I've mentioned before that I have a SlingBox, a $200 device that allows you to watch your home TV over a remote internet connection. One of the coolest things I've ever done was to watch my beloved Seattle Seahawks over a wireless connection from a hotel lobby in the Canary Islands. Half a world away it was Sunday morning and Seattle was beating the Chargers while all around me were getting ready to celebrate New Year's Eve. Sling Media has sold 500,000 of these things which is a fair number but that leaves a lot of the market wide open. That is going to change.

1. On Sept, 24 this announcement was made:

<< Updated: Sling Media, the early leaders in place-shifting technology have scored a touchdown - they are working with DirecTV on a new offering called SuperCast.

As part of this deal, viewers can get online streams of NFL games every Sunday. The deal has been rumored for a while, but it has been confirmed by a company spokesperson. I couldn’t get the details last night since it was very late, but we spoke to the company and here is the lowdown.
First of all you don’t need a Sling Player to get this video package and you don’t need the Sling software. The video steams are accessed with the Microsoft Internet Explorer browser. If you are a DirecTV/NFL Sunday (HD) package customer, then you get access to the games the web for free as part of your package.
Sling Media is providing a hosted service to DirecTV and is managing the web-operation, including authentication and also decides which streams are available to you based on where you live. The videos are being streamed off DirecTV’s servers, not Sling’s servers. Sling also built the browser-based front end for DirecTV. The service only works with IE browser, which is kinda lame. This is a new business foray for Sling, which till now has been purely a hardware vendor.
The company is looking to expand this business. John Malone, who now owns DirecTV is also an investor in Sling, as is Charlie Ergen, the maverick behind Echostar (DISH), and have been the biggest supporters of Sling. National Hockey League has also partnered with Sling for its clip-and-sling service. >>

2. Less than a week later, Sling was sold to EchoStar/Dish Network for $380 million:

<<EchoStar Communications said late Monday that it struck a deal to acquire Sling Media for cash and stock options worth $380 million combined.
The agreement gives EchoStar control of a new media firm that has built a business in selling Slingbox set-tops, which allow cable and satellite subscribers to remotely access programming from their homes via high-speed Internet connections.
“With today’s increasingly mobile lifestyle, EchoStar’s acquisition of Sling Media will allow us to offer innovative and convenient ways for our customers to enjoy their programming on more displays and locations, including TVs, computers and mobile phones, both inside and outside of the home,” EchoStar CEO Charlie Ergen said in the announcement. “This combination paves the way for the development of a host of new innovative products and services for our subscribers, new digital media consumers and strategic partners.”
EchoStar was already an investor in Sling Media, joining a $46.6 million round of financing in January 2006 which also included Goldman, Sachs & Co., Liberty Media, Allen & Co., Doll Capital Management, Mobius Venture Capital and The Hearst Corp.
With EchoStar and rivals such as DirecTV, Comcast and Time Warner Cable offering consumers similar programming packages, the Sling Media acquisition could help Dish Network differentiate its product from its competitors.
Sling Media sells Slingbox models at prices ranging from $120 to $250. The Slingbox and SlingPlayer software are available in 5,000 retail stores in 11 countries, according to the company.
EchoStar and Sling Media said they expect the deal to close during the fourth quarter.>>

3. Dish then announced that they are considering splitting the company into 2 halves:

<<Satellite television provider EchoStar Communications Corp. said Tuesday it is considering separating into two publicly traded companies.
The proposal would involve EchoStar's technology and infrastructure assets - including its set-top box design and manufacturing business and international operations - being spun off from the DISH Network U.S. consumer pay-TV business. Current shareholders would have separate ownership interests in each company.
EchoStar Chairman and Chief Executive Charlie Ergen would remain as chairman and CEO of DISH Network, while filling the same roles at the new business.
The spin-off is subject to final approval by EchoStar's board, regulatory and other necessary approvals, effectiveness of a securities registration statement and confirmation the spinoff will qualify as a tax-free transaction for EchoStar and its shareholders.
The final terms and timing of the transaction have not yet been determined. >>

4. Now come rumors that A T & T is looking to buy Dish:

<< The cosmos is rapidly aligning for EchoStar Communications.
On Thursday, an Oppenheimer analyst upgraded the satellite teleivison company to "buy" and said it was ripe for an AT&T (nyse: T - news - people ) takeover. The vote of confidence rallied investors, as shares of EchoStar rose 6.2%, or $2.71, to $46.18 in early afternoon trading.
EchoStar is undergoing a swift metamorphosis.
In a two-step move, the company announced on Monday it will purchase the remainder of Sling Media for $380 million. The video technology company makes the Slingbox, a proprietary product that streams television into computers through Internet access.

Then, on Tuesday, EchoStar also said it was also considering a split into two distinct public companies. The Englewood, Colo.-company may isolate its Dish Network service--the company's primary profit generator--and spin off the rest of its assets as a separate company. This second bundle of technology assets would likely include Sling Media, the set-top-box business, corporate satellite services and international operations. (See: "EchoStar Soars." )
According to many Wall Street watchdogs, including Oppenheimer analyst Thomas Eagan, the division could unlock $1 to $2 per share for shareholders. However, this move could be a mere stepping stone towards an eventual sale, Eagen said.
Unlike EchoStar's Dish Network service, AT&T's internet television service, U-Verse has failed to gain considerable traction with consumers. Eagan said the U-Verse rollout has been grossly over-budget and behind schedule.
"Given the lack of success of AT&T's U-Verse rollout, it seems to us a matter of when, NOT if, AT&T acquires EchoStar," said Eagan. According to Eagan, the telecommunications giant would be willing to shell out a hefty premium for the company. He predicts that AT&T will pay shareholders more than $56 a share.
"Although Mr.Ergen (the company's Chief Executive Officer) could run and control DISH for the next 20 years, we don't believe that's his strategy. Rather, as the consummate poker player, he is more likely to sell at the opportune time," Eagen said. >>

What does all this mean? I'm not sure.......The NFL already has a deal with DirecTV so I'm not sure how this new NFL deal with Sling/Dish would work. And one assumes that Dish has bought Sling to incorporate their technology into their sat receivers so what happens to their standalone business? A T & T? Well.....if Sling was worth $380 million, what's Dish worth with a subscriber base approaching 10 million? And how does Dish fit A T & T's business plan alongside their cable operator, Comcast?

And how does all this fit into a wireless/cellular/internet world?

[AceRacing]

I use AT&T for my wireless, and they're really pushing for all-in-one (TV/Phone/Wireless) packaging with their customers, the acquisition of Dish and their Broadband TV in some markets are a means to an end in this desire.

[Z28]

It means higher prices for consumers.

[use2know]

Many of the larger content providers have already implemented major internal restructuring to accommodate future growth and development in the areas of new/digital media distribution. This includes all forms of new media such as EST, VOD and SVOD, through traditional and new platforms including cable, satellite, digital terrestrial television… This includes a MAJOR focus on broadband and mobile.



The content providers have been keeping a close eye on the changes currently being implemented by the different distribution entities... And some have actually been pretty successful in staying a few steps ahead.



Times are a-changin’ my friend… In the next 3 to 5 years, the basic landscape of media and entertainment distribution is going to go through some major overhauls…

[Jay J]

Yep, it's an exciting time for media providers and consumers alike!

And it's only going to get more interesting as more options become available in the next few years.

In fact I suspect that like these companies, the cable franchises like Time Warner, Comcast and the like will also start to offer more sophisticated set top cable "boxes" that will combine full HD support, with large hard drives and multipule tuners so you can record more than one HD program at a time while watching another.

The ability to address/communicate with your cable box via the internet for remote programing of what it will record even if you aren't home to program it, and streaming capabilities as well.

And yes, I too agree that we'll see an increase in the fee's for these boxes and services!

Remember too that February 2009 is less than a year and a half from now.

[Jim Wilke]

the cable franchises like Time Warner, Comcast and the like will also start to offer more sophisticated set top cable "boxes" that will combine full HD support, with large hard drives and multipule tuners so you can record more than one HD program at a time while watching another.

?

My DirecTV and Motorola cable DVRs already do that.

[AceRacing]

?

My DirecTV and Motorola cable DVRs already do that.

As do my Time Warner/Brighthouse set top boxes (Scientific Atlanta Explorer 3250HD). Some of the smaller cable providers may be behind in DVR's, HD and other services, though.

[Outlaw]

As does my Dish Network DVR. I can record 1 channel and watch another. I can record 2 at the same time and since I have my antenna hooked up to it I can watch a 3rd program if it is coming in over the air.

Dish also recently turned on the capability to hook up an external Hard Drive to the unit so that I could store more programs. I have not paid the $39.99 to activate this yet. They are also supposed to turn on Ethernet connectivity so that I no longer will have to have it connected to a phone line in the near future.

With the Ethernet connectivity thing imminent I think the sling box being incorporated into the set top box is a logical move. I think eventually they will allow you to save programs to a share on your network and play movies and other programs that you have downloaded. A direct competitor to Apple TV.

[skypigeon]

What's happening should surprise no one who's paid attention to the broadcasting industry for the past twenty years.

Within a generation, broadcasting and computing will be indistinguishable. In many ways they already are.

[Marvin Panch]

OK. So does AT&T buy Dish Network and stick that on the No. 31 for 2009 -- and thumb their corporate noses at Sprint?

[rodneyh]

With the Ethernet connectivity thing imminent I think the sling box being incorporated into the set top box is a logical move. I think eventually they will allow you to save programs to a share on your network and play movies and other programs that you have downloaded. A direct competitor to Apple TV.

It's all about 5C.

Technology will only go as far as the providers feel protected

[indyracefan]

I use AT&T for my wireless, and they're really pushing for all-in-one (TV/Phone/Wireless) packaging with their customers, the acquisition of Dish and their Broadband TV in some markets are a means to an end in this desire.

...I have AT&T for my cell-phone, home phone and DSL and they're trying real hard to have me switch from DirecTV to their new fiber-optic television. She was real nice in trying to convince me to leave DirecTV saying something to the effect of getting over 200 channels for about $70.00 a month. I countered that I currently get over 400 channels for that price with the added option of being able to get the NFL Sunday Ticket, NBA League Pass, NHL Center Ice, MLB Extra Innings, ESPN Full Court, NASCAR Hot Pass.

She then told me to have a nice day.

[SamC]

- Video over computers as a major deal, as opposed to a novelty for people on vacation in the Canary Islands watching the NFL, is another level of development away. It will happen, but its probably 10 years away.

- "And how does Dish fit A T & T's business plan alongside their cable operator, Comcast?" AT&T and Comcast have no relationship. AT&T's cable business was sold to Comcast in 2001, that is all.

- " I ...countered that I currently get over 400 channels for that price with the added option of being able to get the NFL Sunday Ticket, NBA League Pass, NHL Center Ice, MLB Extra Innings, ESPN Full Court, NASCAR Hot Pass." I love telemarketers that try to sell anything be DirecTV. Simply put, there is DirecTV and there is its inferior competition.

- The general DISH - AT&T merger makes sence. Egren is a "maverick". Some might say "outlaw", who regularly shows up as one of the world's richest men, but its 99.999% in DISH stock, and he has taken the system as far as he can. Its only marketing theory is to engage in price wars with DirecTV. He does not have the money to duplicate the DirecTV channel offerings. He can cash in his chips and AT&T can fund DISH's needed launches.

[skypigeon]

- - "And how does Dish fit A T & T's business plan alongside their cable operator, Comcast?" AT&T and Comcast have no relationship. AT&T's cable business was sold to Comcast in 2001, that is all.

Comcast runs some fascinating commercials just slamming AT&T (which is not the same AT&T they bought the cable business from, I know). Including one that has so many errors in technological fact it's ridiculous. It's the one where the pretty face holds up a fiber-optic (I think) cable and calls it "your grandmother's technology" compared to a coaxial broadband cable. If not for my wife's fundamental disgust with AT&T over some phone bill issues some years ago, that bit of ignorance alone would have made me switch to AT&T!

[SamC]

Comcast runs some fascinating commercials just slamming AT&T

My local college football team runs commercials on the video board for early arrivers. The cable company in the town where the school is located is Comcrap, and the service is, of course, awful. City Council and such are after the company all the time. Most of the rest of the draw area for the game has Charter-Suddenlink, which is generally accepted as the worst cable company in the country.

Well they were running these Dan Ackroyd (he really has gotten fat) and Mr. T (remember him) slamming the phone company (Verizon, in this case) and "the dish". Full of stupid and false statements. People were actually throwing things at the video board, and the school had to stop showing the spots.

[stretch51]

then there's SopCast..............

[Brantoc]

Verizion has just put fiber to every home in town. They are touting it as HD TV all digital network. Kinda hard to to analog over fiber.