Direct Tv Satellite Internet

Byline: Cynthia L. Webb

When the music stops playing in the competitive satellite television market, it's hard to tell who will be left without a chair.

Last year, EchoStar Communications Corp. appeared to be sitting pretty, poised to scoop up the owner of the rival DirecTV system. But that deal fell apart under the weight of regulators' doubts. And while there's not necessarily a direct correlation, this morning Littleton, Colo.-based EchoStar reported not-so-great fourth-quarter earnings, logging a loss of nearly $176 million (45 cents per share), compared to a loss of about $43 million (9 cents) in the same period last year. The big losses were attributed in part to a $690 million, break-up charge from its failed attempt to buy Los Angeles-based Hughes Electronics , owner of DirecTV. On a brighter side, EchoStar's revenue did inch up to $1.32 billion, up from $1.15 billion last year. And the company's Dish Network counted nearly 8.2 million subscribers at year's end, about 1.4 million more than in December 2001. * Reuters via washingtonpost.com: EchoStar Posts Fourth Quarter Loss

Hughes, meanwhile, is worried it may be left chairless unless it finds a new merger partner soon. SBC Communications is reportedly one of the new bidders for DirecTV. John Malone 's Liberty Media Corp. is also eyeing a solo bid of DirecTV if a joint deal with Rupert Murdoch 's News Corp. falls through, which The Wall Street Journal reported last week had already crumbled due to antitrust concerns (Liberty Media dismissed the Journal's report as speculative at the time, but News Corp. has since indicated it would now go solo). "We've made it very well known to the public that we'd be interested in doing a deal either by ourselves or with News Corp. but, at this point in time, the decision hasn't been made," Liberty spokeswoman Julie Ballantine told The Associated Press last week. * The Associated Press via The New York Times: Liberty May Go Alone In Bid For DirecTV (Registration required)

More on a possible SBC-Hughes deal was reported by Crain Communications' Electronic Media Online. "Obviously, there is a lot of interest in Hughes in the marketplace, and we are currently looking at what strategic direction to go forward with," Hughes Electronics spokesman Richard Dore told the news service. "SBC and several other Baby Bells already are in partnership with DirecTV to offer packages of programming along with telephone and data services. After the Texas-based SBC, formerly known as Southwestern Bell, acquired the parent company of Pacific Bell, and Midwestern phone giant Ameritech, sales slowed down due to pressure on pricing and increased competition from alternative phone service providers and cable TV companies that bundle phone and programming services. This would not be the first time a phone company has jumped into the distribution of programming. However, most of the past attempts have not been very successful. Most recently AT&T acquired cable systems but last year sold them to Comcast, abandoning its efforts to be a one-stop provider of all audio and video services for home and business. SBC may also be slowed in its pursuit by the likelihood it would have to take on a large additional debt." * Electronic Media Online: Baby Bell Bids For DirecTV

And in a development that probably isn't good news for America Online , Hughes has ended a four-year-old partnership with AOL, according to a filing with the Securities and Exchange Commission. The deal was ended on Feb. 24 for unspecified reasons. Hughes and its units no longer have to live up to a deal to spend some $1 billion in sales, development and marketing to hawk joint products, but Hughes Network Systems, DirecTV and AOL will still explore new partnerships, the filing said. Hughes Network Systems will continue to provide its Internet services via satellite to current AOL Broadband subscribers "as the companies develop a transition plan to an unbundled service." * Reuters via washingtonpost.com: Hughes Details Charges, Cuts AOL Ties * The Associated Press via Newsday: Hughes Electronics, AOL End Alliance

Another relationship break-up: Liberty now plans to unravel a deal with cable giant Comcast involving shopping channel QVC . "Liberty's move triggers a formal process for determining the future of QVC, but the ramifications of that process could affect many other media companies. The sale of Liberty's stake in QVC, for instance, could help the company finance a bid for Hughes Electronics Corp., owner of the DirecTV satellite operation, which Liberty has been considering. Liberty Chief Executive Robert Bennett said in an interview yesterday that Liberty expected 'to make a proposal' to buy control of Hughes," The Wall Street Journal reports today. * The Wall Street Journal: Liberty Media Asks Comcast For QVC Ownership Change (Subscription required) * The Washington Post: QVC May Be Put on Block After Decision * USA Today: Liberty Disbanding QVC Partnership With Comcast

Preventive Medicine

A flaw with Sendmail , the Internet's most popular mail-server application, could allow a hacker to take over a mail server and set off a dangerous program that could paralyze the Internet. The flaw could be exploited to produce a worldwide Internet attack akin to the Slammer worm that emerged in late January. Even though Sendmail said that it does not believe that hackers have found a way to exploit the flaw yet, companies like Hewlett-Packard , IBM and Sun are still urging customers to download a patch . "Vulnerable Sendmail servers will not be protected by legacy security devices such as firewalls and/or packet filters. This vulnerability is especially dangerous because the exploit can be delivered within an email message and the attacker doesn't need any specific knowledge of the target to launch a successful attack," security software company Internet Security Systems warned yesterday. * BBC Online: E-Mail Exposed to Hackers * PCWorld.com: Mail Server Flaw Could Spawn Slammer II * CNET's News.com: Companies Mobilize To Patch Sendmail

* InternetWeek.com: Security Experts Warn of E-Mail Software Flaw

Meanwhile, CNET's News.com said that security companies gave the brand new Department of Homeland Security "high marks" for working with the private sector to get a fix released. The department's "Directorate of Information Analysis and Infrastructure Protection (IAIP) worked with security company Internet Security Systems, which discovered the flaw, and Sendmail Inc. to create a patch while keeping news of the issue from leaking to those who might exploit the vulnerability," the news service said. * CNET's News.com: Sendmail Flaw Tests Homeland Security

Apple's Music Service Sweet For Some

A new online music service developed by Apple Computer is getting kudos from top record company execs, The Los Angeles Times reports. "The new service ... offers users of Macintoshes and iPod portable music players many of the same capabilities that already are available from services previously endorsed by the labels. But the Apple offering won over music executives because it makes buying and downloading music as simple and non-technical as buying a book from Amazon.com," the newspaper said. "This is exactly what the music industry has been waiting for," an unnamed person who is familiar the negotiations between Apple and the labels told The Los Angeles Times. "It's hip. It's quick. It's easy. If people on the Internet are actually interested in buying music, not just stealing it, this is the answer." * The Los Angeles Times: Labels Think Apple Has Perfect Pitch (Registration required)

A Raspberry for Oscar-Hopeful Studios

One perk for Academy of Motion Picture Arts and Sciences members is getting review copies of the films nominated for the Academy's prestigious Oscar awards. But in a page one article yesterday, The Wall Street Journal reported that while movie studios, including AOL Time Warner 's New Line , handed out thousands of copies to help pump up buzz for Oscar nominations, "some of those discs ... fell into the wrong hands and became the digital blueprint for bootleggers who have copied the film and distributed it both online and in shops abroad. So even as 'Two Towers' plays in theaters around the world, perfect but illicit digital copies of the film are widely available. The DVD for sale in Beijing still carried the on-screen warning: 'The presentation you are about to see is for Academy consideration only. It is the property of New Line Cinema and is not for sale or public exhibition.'" According to the Journal, "The situation represents the collision of two powerful forces in Hollywood: the race to stamp out piracy and the race to win Academy Awards. The movie studios say they are desperate to stop digital copying before it becomes as rampant as the theft that has knocked the music industry for a loop in recent years. Yet, this season at least, it appears that the bloodlust to win Oscars is proving stronger." * The Wall Street Journal: In Pursuing Oscar Dreams, Studios Give Pirates a Hand (Subscription required)

While the Academy Awards are scheduled for later this month , the Oscars for technical and scientific prowess were handed out this weekend. * Reuters via washingtonpost.com: Barefoot Hudson Triumphs Over Dress At Tech Oscars

Filter is designed for hard-core techies, news junkies and technology professionals alike. Have suggestions, cool links or interesting tales to share? Send your tips and feedback to cindy.webb@washingtonpost.com .

COPYRIGHT 2003 Washingtonpost Newsweek Interactive
COPYRIGHT 2003 Gale Group

Refinance As Low As 5.48% - Sponsored Link
Ad - Compare Up to 4 Free Offers. Home Refinance Inquiries Only.