Ten Years Ago... Deal By Murdoch For Satellite TV Startles Industry

TEN YEARS AGO...

Deal By Murdoch For Satellite TV Startles Industry
[SOURCE: New York Times 2/26/1997, AUTHOR: Mark Landler]
Ten years ago cable television and satellite companies around the country were roiled [we used words like "roiled" back in the 90s] by the news that Rupert Murdoch had agreed to invest $1 billion in a new satellite service that could be the first full-fledged competitor to cable in its three-decade history. News Corporation and Echostar were to fold their respective direct broadcast satellite services into a single venture. The service would combine Murdoch's internationally known Sky satellite-television brand name with Echostar's 430,000 United States subscribers. Experts said it could be far more than the sum of these parts. Because the combined company could have eventually had seven satellites floating above the earth, the service would have been able to beam 500 channels of programming to its subscribers. The companies planed to use this vast channel capacity to include local broadcast stations -- which were not available on any other satellite service, and which analysts said could enable Sky to offer consumers the first genuine alternative to their local cable operator. Satellite enthusiasts said that consumer benefits could include a clearer picture, better service and a broader menu of programming. The deal would hit a snag in April 1997 and implode by May.
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