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--------------------------------------------------------------
Which is worse - cable or DBS piracy? Cast your vote in
SkyREPORT's Sky Poll - http://www.skyreport.com
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SkyREPORT 09/24/2004 - Still No Moves for Sat Bills

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Today's Headlines:
Still No Moves for Sat Bills, Biz Eyes McCain Proposal
FCC Eyes Ownership Issues with Cablevision, MVDDS
DirecTV Weathers the Storm
SkyFILES: Random Thoughts
PROGRAMMING: It's All Politics on Showtime


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        Still No Moves for Sat Bills, Biz Eyes McCain Proposal


As the week comes to an end, there still wasn't any movement 
on key satellite TV legislation on Capitol Hill.

There is talk that a hearing on bills impacting the satellite 
TV industry may move to the House floor next week. On the 
Senate side, where two pieces of legislation await action, 
there hasn't been any news.

Satellite TV needs critical items passed in the legislation 
such as its compulsory license for superstations and distant 
networks, which are set to expire at the end of the year.

Meanwhile, legislation sponsored by Sen. John McCain, the 
Arizona Republican and chair of the Senate Commerce Committee,
is gaining more attention due to its proposal to help 
consumers obtain access to digital TV when analog TV feeds are
shut off.

McCain's bill, which aims to allocate spectrum for public 
safety issues as well as push forward the digital TV 
transition, contains language pertaining to subsidies for 
devices consumers can use to obtain digital TV signals if they
still have analog TV sets. The bill also has a proposal that 
would provide payment for a one-time installation of equipment
required for residential reception of services provided by a 
multichannel distributor, such as cable or satellite TV.

A key part of McCain's bill was gutted during a hearing in the
Senate Commerce Committee Wednesday. Lawmakers took out a 
provision that would've required broadcasters to cease analog
broadcasts and convert to digital TV by 2009. (For story, see:
http://www.skyreport.com/viewskyreport.cfm?ReleaseID=1490)

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        FCC Eyes Ownership Issues with Cablevision, MVDDS


The Federal Communications Commission granted DTV Norwich,
the Cablevision-backed entity that holds licenses for
Multichannel Video Distribution and Data Service (MVDDS),
an extension to come into compliance with rules governing
cross-ownership  issues. 

Cablevision, which has a large presence in the New York City 
area, holds a 49 percent indirect interest in DTV Norwich. FCC
rules prohibit an entity that has interests in a cable 
operation from having an interest in an MVDDS licensee if the
cable operator's service area significantly overlaps the MVDDS
license area.

In order to avoid any conflict, DTV Norwich was made part of 
Cablevision's planned spin-off of a group of assets that also 
includes VOOM, the Cablevision-backed satellite TV service. 
The FCC granted DTV Norwich an extension of 270 days for it to
come into compliance with the MVDDS/cable cross-ownership 
rule.

Satellite interests have been closely watching MVDDS at the 
FCC. The service will share frequencies used by DBS, and that
has some worried about potential interference with small dish
services.

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        DirecTV Weathers the Storm


How well did DirecTV manage the hurricanes that recently blew 
through Florida? With flying colors, stated one customer of 
the satellite TV company.

A subscriber in Palm Beach wrote DirecTV about the service 
before, during and after a recent storm. The customer had a 
DirecTV system hooked up to a generator, which allowed for TV
reception of critical news and information and (more 
importantly for the viewer) access to HBO. The customer 
reported 115 mph winds blowing through the neighborhood, as
well as trees falling to the ground and debris traveling 
through the air.

During the entire time the hurricane ravaged the area, the 
DirecTV satellite dish remained intact on the roof. "Let me 
tell you when they put that dish up its not going anywhere," 
the customer wrote DirecTV.

That's great news for satellite TV viewers in the Sunshine 
State. The not so great news for cable customers: According to
the Florida-based DirecTV customer, cable service in the area
is still out and may be out for weeks.

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        SkyFILES: Random Thoughts
by Michael Hopkins [EMAIL PROTECTED]


*A Gem of a Company ...

DirecTV isn't the only U.S.-based News Corp.-controlled 
company that's firing on all cylinders.

Gemstar TV-Guide, the company known for its interactive 
program guide technology, has News Corp. as its largest 
shareholder. This week, the company announced that Hitachi 
America will put its IPG technology into digital TV sets. 
Earlier this month, Gemstar said Panasonic was licensed to put
its IPG technology into digital recording devices and 
televisions sold in Europe.

TVG Network, Gemstar's interactive horseracing channel, was 
launched on Comcast cable systems in 13 markets this month. 
And the net inked a deal with the New York Racing Association
for television and account wagering rights for races at 
Aqueduct, Belmont Park and Saratoga Racecourses.

Add to that a few recent court victories, and Gemstar 
(which once had a reputation as a company not that didn't 
exactly have its feet firmly planted on the ground) 
appears to be an emerging winner in TV technology circles.

*Fighting the Pirates ...

DirecTV recently won two key cases concerning piracy. One was
in Colorado, in which a federal judge fined an end-user 
$10,000 (the maximum allowed under federal law) plus attorney
fees for allegedly using illicit satellite TV reception 
equipment. In Phoenix, a man was sentenced to four months in 
jail and three years probation for unlawful possession of an 
access device and facilitation of computer tampering.

And in Utah, DirecTV filed suit against a couple for allegedly
setting up a fraudulent scheme to obtain programming from the
satellite TV company for consumers by setting up false 
subscription accounts and illegally activating receivers.

DirecTV's piracy-fighting efforts have always been in the 
spotlight. And another DBS company (DISH Network) is 
experiencing piracy challenges of its own. For more on 
satellite TV's battle with the pirates, as well as cable's 
signal security efforts, check out the October issue of The 
BRIDGE (http://www.mbc-thebridge.com).

*Where the Air is Thin ...

During the week, I received comments concerning my last column
on the NHL lockout and carriage of Denver-based Altitude 
Sports and Entertainment on EchoStar's DISH Network. While 
some will miss TV coverage of Avalanche hockey, readers 
reminded me that the regional sports network will still 
deliver Nuggets basketball plus game action from local college
sports teams.

In fact, this past weekend, I caught the Idaho State/Northern
Colorado match up on Altitude (via DISH Network). And as an 
alumnus of the University of Northern Colorado, I was happy to
finally see coverage of the Bears (even though my college team
lost in overtime to the Bengals from Pocatello).

It's terrific Altitude has stepped up and is delivering 
coverage of local colleges that haven't before had the TV 
exposure. The network also has a deal in place with the 
organization overseeing Colorado high school sports concerning
TV coverage. So far, Altitude has carriage deals in place with
DISH Network, Adelphia and a handful of smaller cable 
companies. Nonetheless, the lack of Avs coverage isn't going 
unnoticed, and that (plus other factors - probably associated
with carriage costs) may have hurt the RSN's chance for 
carriage on Comcast and DirecTV.

Do you have a comment or letter for SkyFILES? Write the editors
at: [EMAIL PROTECTED] Please note, your comments may be 
used for our Web site.

****** The BRIDGE for October 2004 ******
Illicit Copying, "sharing", digital cable
filters, black boxes ...

If these words make you uncomfortable ...
Read the October issue of The BRIDGE,
The Fight for Signal Security!
****** http://www.mbc-thebridge.com/ ******







        PROGRAMMING: It's All Politics on Showtime


There are three remaining candidates on Showtime's political 
reality series, "American Candidate." They are Park Gilespie, 
Malia Lazu and Lisa Witter. This Sunday, and on Oct. 3, 
viewers can elect the winner of the TV series by calling a 
toll-free number or text messaging number available by 
watching the show. The winner will be announced on the final
episode Oct. 10, Showtime said.

VH1 Classic Features Styx - Tonight at 6 p.m. Eastern, VH1 
Classic will feature Styx and its newest album entitled, 
"Cyclorama." The hour-long program also will feature videos 
from the band and a visit from band member James Young.


















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