Audio Video News

EchoStar Communications Corporation has begun an aggressive campaign to win new subscribers. The three-pronged effort includes low-cost subscriptions to the company's DISH Network, a soon-to-be-launched eighth satellite, and a marketing deal with discount giant Wal-Mart, Inc.

On August 2, the Littleton, CO–based direct broadcast satellite service announced its "WOW—Free Satellite TV" promotion, which claim to offer consumers the lowest all-digital TV channel package in America: $22.99 per month for 60 channels and a free professionally-installed satellite TV system. EchoStar hopes to win converts among cable subscribers, who in the past six years have seen their monthly cable fees rise almost three times faster than the rate of inflation: 44.7% for cable compared to 16.5% for prices generally. Inflationary figures for the period from February 1996 through June 2002 were quoted by EchoStar from a July 24, 2002 press release from Consumer's Union, the nonprofit consumer organization that publishes Consumer Reports magazine.

The deal: DISH Network is offering new customers a $12.50 equipment credit per month for an entire year when they purchase a DISH Network Dish301 satellite TV system for $149 and subscribe to America's Top 50 programming package for $22.99 per month. One year this system amounts to a "free" satellite TV system, according to EchoStar's announcement. DISH Network programming includes CNN, Disney, USA Networks, and Discovery Channel. Customers with televisions in two rooms can take advantage of a $17 per month equipment credit if they buy two Dish301 receivers for $199 and subscribe to America's Top 50. Programming activation of the second receiver will cost an additional $4.99. Local television channels (in the 43 metropolitan areas where EchoStar provides the service) cost an additional $5.99 per month. No long-term commitment is required beyond the first year.

EchoStar is also promoting its Dish PVR 506 personal video recorder as part of the package. The PVR 506 allows viewers to "time shift," pause live broadcasts, perform instant replays, and skip ahead in 30-second increments. Normally priced at $349, the PVR 506 is only $199 after monthly equipment credits are deducted. Among other available viewing packages are "America's Top 100" at $31.99 per month and "America's Top 150" at $40.99 per month. This last option includes "more than 30 commercial-free, CD-quality music channels."

Also on August 2, EchoStar announced that its EchoStar VIII satellite, originally scheduled for a June 22 launch, has been rescheduled to launch from pad 23 at the Baikonur Cosmodrome, Kazakhstan, on Tuesday, August 20. The Space Systems/Loral–built satellite will launch aboard a Proton launch vehicle at 1:15am EDT. A technical glitch with the satellite's command receiver caused the delay.

The EchoStar VIII satellite will join seven other satellites in the EchoStar fleet, and will assume its position at 110 degrees West Longitude. Combined with EchoStar VII at 119 degrees W.L., EchoStar VIII will provide Ku-band and spot beam services over the continental United States, Alaska, and Hawaii, thereby enhancing the delivery of EchoStar's DISH Network local-into-local TV channels.

EchoStar also hopes to win more consumer awareness through a recent distribution deal arranged with retail chain Wal-Mart, Inc. Wal-Mart, which previously carried DirecTV equipment, will soon carry RCA-branded satellite TV integrate receiver de-scrambers (IRDs) in 1900 Wal-Mart stores across the country. EchoStar's network of installers will handle the installation of the dish antennas essential to the system. RCA parent company Thomson Multimedia and EchoStar announced their joint IRD manufacturing agreement shortly after CES 2002. Thomson was also the primary developer and manufacturer of DirecTV equipment.