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See the attached news report today stating the first thing Echostar wants to do IF they buy Directv is replace all Directv receivers with dish network receivers.

Now how would that go over with the many different Directv boxes out there and Only one version of the dish HD box.

I would not want to give up my Sony HD100... How about you?

Here is the news report:


ECHOSTAR MAY FORCE NEWS CORP TO UP ANTE FOR DIRECTV

EchoStar Communications' $30-billion bid for Hughes Electronics, operator of DirecTV, may force News Corp, the leading suitor for the General Motors-owned company, to raise its bid, according to analysts and investors interviewed by Bloomberg News. It would also force News Corp to make its bid public so that investors in GM and Hughes can assess it, the wire service observed. It quoted Vic Hawley of investment advisors Reed Conner & Birdwell as saying that GM "can force a sub-par deal to a point, but to get our approval, Murdoch has to make it clear to us that this is a deal we want over EchoStar." Meanwhile, EchoStar said Tuesday that it would replace DirecTV receivers in subscribers' homes with its own over the next four years at a cost of $2.5 billion.


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Troy
 

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So here's a question from a newbie still basking in the joy that was Rockies-Cubs: What would happen to owners of the RCA F38310, the TV with the box built-in?
 

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Jeez, you would think it would a little cheaper than 2.5 billion to make the current DirecTV stuff work for DISH, IF they are successful. I mean they would spend 2.5 BILLION to change all the boxes? what a crazy idea in my opinion.


Winston
 

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I understand why they would not want to run multiple dishes.


However, the strategy of replacing existing receivers is a very poor one. Given that DirecTV has about twice the penetration of Dish right now, extremely poor.


I can think of no happier group than the cable industry. This would give them an opportunity to increase their share previously lost to DirecTV. Consumers would be furious.


My guess is that EchoStar would end up rethinking this approach and would go with some more gradual scheme. Perhaps they would allow one of the two systems to atrophy while they built up the other one, shifting new sales, and overall making a graceful transition.


Customers have become accustomed to the idea that consumer electronics will continue to do what they bought it for during the lifespan of the equipment. They are used to things being phased out, but have no experience with draconian cut-offs.

 

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The DirecTV recievers are the Wintel equivalent of a fractured market. Many of the older receivers can't receive multiple dish locations and also aren't software upgradable. Echostar makes their own receivers so that's something they can can do at relatively low cost.


My main hope is that as they replace existing receivers they'll given them the ability to downconvert HD programming to SVHS so that even if someone doesn't have an HD capable box they'll have a way to receive HD programming.


Dish's future is in providing Linux-based boxes where they have total control of the hardware and software in the receivers and can gain interactive advertising revenue via new OpenTV services. Think of them as the Apple of the satellite world.


Dennis


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Dennis Whiteman

FastPipe Media, Inc.
 

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I think Dish wants to replace them because the D* boxes are easly hacked, in the long run its cheaper for them to replace them than to let all thoes millions of people to get the service for free. I think its a good idea, why should I pay for the service when Joe schmoe gets it for free.. Nahh Dont think so.


As for your sony that you bought, if you read it correctly its at a cost to them, one would assume if its at a cost to them they would be replacing your box for freee...
 

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It not the box but rather the card.


The cable companies want Charlie to get Directv reason
Quote:
  • The length of time it would take to move to a common technological platform ("highly disruptive," Shapiro says);
  • The big cut which Ergen says he could take from retailer subsidies. Shapiro believes that "could disenfranchise the primary distribution channel;" and
  • The long government scrutiny likely for an Echostar/DirecTV merger ... another big disruption and momentum derailer, says Shapiro.


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Directv Subscriber (oval dish)

RCA UTV, Hughes 2 E25 and 1 Hughes E11

Wishlist:

Sony T60
 

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I saw this in the SEC submission that EchoStar made, in the link provided here the other day. At the time I assumed the equipment replacement they were discussing was the receivers, but this confirms it.


Although I believe that this involves a swap of stock for stock (plus some cash), I think it likely that, if successful, one of the entities will be merged out of existence.


In any merger, what happens is a consolidation of operations. Generally, the surviving company has the upper hand (since its board is picking which "departments" survive) and, unfortunately, lots of people lose jobs. One of the objectives of the merger is to operate the sum of two parts with less than the sum of its two operating expense numbers.


So the idea of one box is probably not only technically imperative, but it's also emblematic of what's going to happen at the merged companies. One Accounting Department will exist, where there used to be two--it might be 1.3 times the size of either of the former departments, but it's being counted on to run all the money that comprised the two companies, for, in this case, 65% of the cost. And this will go on down the line--advertising, programming, whatever . . . fact is that a lot less people are going to say they work for a digital satellite company, but, presumably, the totality of all that digital satellite business will remain.


Now, obviously Dish (assuming it's the survivor) is not going to tell subscribers to buy new boxes--that would be suicide. Instead, they're going to make a safe and easy way for you to get their boxes, maybe trade in your old ones, and they'll figure out how to stick everyone for the bill after they've made sure you're still around. If this happens, count on a punchy campaign to convince you that their hardware is better than anything you've presently got, and you're losing nothing in the process. If they become the only game in town. . . who is going to argue?


I was personally impressed by the details of the offer, since it sounds like they are determined to make this work. And what I read only convinced me that we're way better off from a HD standpoint with Dish in command.


Still merits an ear to the wall, but I still consider this promising news.


Nick http://www.avsforum.com/ubb/cool.gif
 

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Quote:
Dish's future is in providing Linux-based boxes where they have total control of the hardware and software in the receivers and can gain interactive advertising revenue via new OpenTV services. Think of them as the Apple of the satellite world.
No thank you. The apple model for a STB is a non-competitive, single source of supply. If other manufacturers are allowed to compete and provide STB's then cost and features will follow the market place.


Also advertising as a source of revenue with STB's just gets in the way of what an STB should be used for.. watching TV.


I recently participated in an interactive STB evaluation and thought it was seriously lacking (ie it sucked). If I need interactivity I go where it's done with style and gusto: friends, the internet or a bar.


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Tom Smith
 

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Quote:
I would not want to give up my Sony HD100... How about you?
You are talking 3 to 5 years. By the time they did a box swap, all the new boxes would be way better than the current D* and E* boxes.
 

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Did they ever think that the reason DirecTV has more customers is that the variety and quality of boxes is better. The last time I looked at their GUI it was as bad as RCA's first generations(slight exaggeration). Why would I switch to that?


Anyway I don't think they will pull it off anyway. Murdoch will probably get it.
 

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There's no way Dish could just shut down the entire DirecTV receiver market. There are several big CE players (Sony, Thomson, Matsushita, etc) that have large investments in their DirecTV partnerships.
 

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Did I forget to mention that Microsoft also has invested in the DirecTV platform? (Ultimate TV) Do you think Bill would like to lose this early in the game?
 

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Shouldn't be a big deal to make a single box deal with both broadcast streams.They aren't that different. Besides, given the control DTV exercised with its licensing, there really isn't that much competition amongst the STB folks.


Mike
 

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I'll weigh in my $.02 worth on this issue:


First of all, I don't think Charlie really wants DirecTV, nor does he honestly think they'll sell to him. This is pure business strategy, brilliantly implemented, that came at the perfect time. By slowing things down and creating so much uncertaintly in the market, DirecTV has practically slowed to a standstill. Subscribers are jumping ship left and right, and they aren't moving forward very agressively because they don't know who will own them. It also doesn't look good when you're trying to sell your company if they blow a lot of money and not make anything in return. Don't believe for a minute that it's "business as usual" at DirecTV. They are walking a fine line of providing service while keeping their revenue profile as high as possible. At this stage in the acquisition game, every decision is scrutinized to the nth degree (been there, done that).


So, while Charlie and Co. have paralized DirecTV, they have moved in and started to offer new services like CBS-HD and others. Honestly, I don't know how much of this was planned years ahead of time or how much is just coincidence, but things just haven't worked out for DirecTV. Primarily, they don't have enough transponder space to offer new service or much more HD, while Dish is slopping over with extra slots. That will change, but right now is a critical time, and it couldn't have happened at a better time for Dish Network. Dish is growing day by day, while DirecTV is losing subscribers. Who knows how it will all pan out, but I have to admire Charlie for what he's doing. In a purely business sense, this guy's got the brass coconuts and isn't afraid to use them.


As I said, I don't think this sale will actually go through, so I wouldn't worry too much about the receiver hardware issue. But on the off chance that E* does acquire DirecTV in the future, keep these things in mind:


You can't read too much into one-line press releases. At this early stage of the game, a comment about replacing DirecTV boxes with Dish boxes is pretty preliminary and we don't know exactly what that means. I agree that the smart cards have to go. DirecTV wouldn't have such a difficult time with hackers if they just got rid of those stupid cards. With regard to the CE manufacturers of the current DirecTV boxes, Dish would probably work out an agreement with them to produce Dish-compatible boxes. We have no idea what the contracts between these vendors and DirecTV look like, so we can't even begin to speculate. I'm encouraged that the release did indicate it would be an expense for Dish, which means they don't expect everyone to just go out and buy new receivers. If Dish and DirecTV do merge, I doubt that Dish would be able to continue to make all of their own hardware. Contracting out to CE vendors makes the most sense.


Let's not put the cart before the horse here, is the point of my posting. First of all, I doubt this buyout will really take place. (Besides, you don't know what Murdoch will do when he gets control, either!) And even if it does, we don't know exactly how it will affect everyone. I think a 4-year transition is pretty reasonable. Come on, now. You were planning on upgrading your receiving in the next 4 years anyway, weren't you? http://www.avsforum.com/ubb/smile.gif
 

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Damn I just love Dish and the way they think. To bad Directv didn't think the same way, LAMO. hehe go dish!!!!!


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MetalMarineE5_IWB

http://claniwb.cjb.net
 

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Sounds like a monopoly to me! I don't think it would pass FCC inspection, (can't corner more than a certain percentage of the market), unless there's serious bribe money being passed under the table...(and we know that would NEVER happen) http://www.avsforum.com/ubb/rolleyes.gif



[This message has been edited by sam54 (edited 08-09-2001).]
 
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