Driven by the entry of several larger manufacturers, the first two conditions were met rather easily. At the same time, the overall reliability of the hardware improved dramatically and the early systems which were really little more than experimental units transitioned into stylish state-of-the-art microprocessor-controlled video tuners comparable in size to a VCR.
This legislation clarified the right of American citizens to own a satellite dish, and it also contained provisions establishing the legal structure by which program providers could require those dishowners to pay for reception of their services. The DTH industry will remember for its rollercoaster ride of highs and lows.
From a shipment perspective, the chart clearly shows that satellite TV was hot -- some , systems were produced in the United States. Some months in the latter part of the year saw in excess of 80, units sold. An industry which began the year with less than a million consumers ended the year with over 1. Indeed, to the outside observer, the DTH industry appeared to be one of the hottest technology bets available. In fact, this success was setting the industry up for a dramatic tumble -- one which would take years to overcome.
With the cash registers ringing wildly in satellite dealerships across the country, the industry literally found itself out of control. The satellite dish had become the pet rock industry of the year. All of this was happening in an environment where programming was free -- the consumer made a one-time hardware purchase and enjoyed well in excess of a hundred channels of high quality video, including every basic and premium cable service, at no charge.
As wore on, the signs of change began to emerge. Several cable programming services announced plans to encrypt their satellite feeds under the authority granted to them by the Cable Act. Clarity in hindsight tells us that the DTH industry should have prepared itself and its consumers for the sea change which was coming.
However, for any number of reasons, most retailers either refused to believe that signal scrambling would ever occur -- or chose to ignore the train which was bearing down on those selling the promise of "free TV forever.
The lines were long at satellite dealerships, and sales were good. As the day wore on, suddenly the video on HBO was replaced by unrecognizable lines and the audio was gone. At that very moment, the hardware-based DTH industry transitioned into one which would be driven by the sale of software - programming. This was not to be however, as the news of scrambling hit the national media with a message that, " The first thing to happen was the wholesale defection of retailers who had entered the business in in search of the easy sale.
This was followed by a bitter internal industry battle over scrambling which soon saw existing DTH system owners drawn into the fight to preserve the free airwaves. Worse yet, the industry allowed this battle to spread to new consumers as they entered dealer showrooms to consider the purchase of a dish.
The political fireworks generated by these shows demonstrated the fact that the industry was approaching a meltdown. The impact on sales of new DTH systems was dramatic. From , systems in , the industry plummeted to , units.
An estimated 60 percent of all retailers in the industry on January 1, were gone as the year came to a close. Fire sales dominated the marketplace as hardware manufacturers and distributors either left the business or fought to generate sufficient cash flow to hang on. Clearly, the DTH industry was rapidly approaching a fork in the road on the way to survival or oblivion.
December 2, The First Signs of Unity For the home satellite industry to survive, it was clear to many company executives that the political disagreements had to somehow give way to conscience building and industry unity on key long-range marketplace issues. John Clark of RCA Americom faced the immediate challenge of how to restore unity to a fractured industry.
They quickly moved to create a Board of Directors which would offer equal representation to all segments of the DTH industry -- including the new players -- satellite programmers. For the first time, these programmers would have an opportunity to directly participate in the decision making of an industry they served -- something they were not afforded in the cable trade organizations of the day.
As the new satellite trade association took shape during the early part of , the first sparks of optimism returned to the satellite business. Little did the SBCA leaders know that perhaps the industry's biggest challenge ever would surface in a matter of months. The grouping of encrypted services all of which had chosen to use the VideoCipher II VC II scrambling system into attractively priced packages was a major step forward in the sale of programming to the consumer who previously was required to make several phone calls to purchase individual programming services.
Just as stability was returning to the industry, the VideoCipher II system came under heavy attack from hackers. Within months of the first rumors of a break in the system, the worst fears of the industry were realized as signal piracy exploded across the nation.
While marked the arrival of medium and high-power Ku-Band DBS service, it was also represented one of the best years ever for the C-Band industry. With piracy effectively under control, and consumer interest in satellite TV growing as a result of initial marketing of DBS hardware, C-Band sales boomed. In August of , some 85, systems were shipped, representing perhaps the best single month in the 14 year history of the industry.
As drew to a close, over , new systems had been shipped, and nearly 2. While C-band activity has slowed, and the total authorized households had dropped, C-Band still represents almost 2 percent of all television households. The industry survived not only because it has a good product which offers unique programming at a good value -- but because many of those early pioneers simply wouldn't let the dream slip away.
Those pioneers are now leading this industry into the digital information age of 21st century. Post reply. Insert quotes…. Similar threads K. Replies 24 Views 2, Replies 11 Views Replies 39 Views 3, Replies 0 Views Breaking Positivity returns slowly for cable, DTH operators. Akash J. RealVU is the second international broadcast project that was launched with direct involvement of GS Group.
GS Group intends to focus on launching digital broadcast projects in other promising markets. Email Robert at rbriel broadbandtvnews. Subscribe Join over 40, readers to our Daily and Weekly emails. Complete the simple form to get the latest issue delivered direct to your inbox.
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