Audio Video News

Decreasing losses are often greeted as gladly as increased profits. EchoStar Communications has reported that its net operating loss decreased from $792.8 million in 1999 to $621.2 million in the year 2000. Total revenue for the year ended December 31 amounted to $2.7 billion, an increase of 70% over 1999's $1.6 billion. The direct broadcast satellite operator reported revenues of $805.1 million for the final quarter, up an impressive 56% from the same period in the previous year.

EchoStar attributes the improvement in its financial picture to a massive increase in new subscribers. In 2000, EchoStar netted approximately 1.85 million new subscribers, a 26% improvement over 1999's 1.47 million new subscribers. The gain is a record for EchoStar, which acquired almost a half million of its new subscribers in the last quarter of 2000.

The Littleton, CO–based DBSer and its competitor DirecTV have both benefited from loosened regulations that allow them to retransmit local TV signals into their areas of origin, as cable systems have done since their inception. Both satellite services have HDTV services available, unlike most cable providers.

EchoStar was able to make these impressive gains despite having to drop local television channels operated by Young Broadcasting in two cities, San Francisco and Nashville. Young Broadcasting refused to grant retransmission consent to EchoStar for KRON in SF and WKRN in Nashville after EchoStar balked at paying "excessive" fees for the retransmission rights. WKRN is an ABC affiliate; KRON is currently an NBC affiliate, but will separate from the network at the end of the year, thereby losing its network programming. The new SF Bay Area NBC affiliate will probably be retransmitted by EchoStar's Dish Network, according to company officials.

EchoStar has filed a complaint with the Federal Communications Commission over Young Broadcasting's demand for what EchoStar executives said were fees four times the going rate for the rights to retransmit comparable stations.