EchoStar Expands into Broadband Satellite Networking and Interactive TV

Strategic Insights -

EchoStar Communications Corp., also known as DISH, has taken a significant step into two major growth areas: broadband satellite networking equipment and interactive TV services. The company has signed a letter of intent to acquire Media4 Inc., a supplier of broadband satellite networking equipment, and partnered with OpenTV Inc. to deliver interactive TV services. These deals aim to enhance the viewing experience of EchoStar's consumers and establish the company as a leader in business TV and data delivery applications.

Key Takeaways:

  • EchoStar plans to acquire Media4 Inc., issuing approximately 400,000 shares of DISH common stock for 100 percent ownership.
  • The acquisition will allow EchoStar to offer a full range of broadband content delivery solutions for customers, leveraging Media4's MediaStream technology.
  • EchoStar has partnered with OpenTV Inc. for a seven-year agreement to distribute domestic interactive TV services.
  • The partnership with OpenTV will enable EchoStar to become the first DBS provider to offer full interactive TV services across the United States.
  • OpenTV's software technology has already been adopted by 15 digital cable and satellite TV operators, 24 set-top box builders, and dozens of content developers and service providers.
  • EchoStar serves more than 1.5 million U.S. subscribers with its DBS service and plans to expand its reach with interactive TV services.
  • The partnership with OpenTV is expected to be fully operational in the summer of 1999, with EchoStar's digital set-top boxes available to its DISH Network subscribers.

Statistics:

  • Approximately 400,000 shares of DISH common stock will be issued as part of the acquisition of Media4 Inc.
  • EchoStar currently serves more than 1.5 million U.S. subscribers with its DBS service.
  • The partnership between EchoStar and OpenTV involves a seven-year agreement to distribute interactive TV services.
  • OpenTV's software technology is currently adopted by over 50 different partners, including digital cable and satellite TV operators, set-top box builders, and content developers.

Sources:

  • OpenTV Inc.
  • Media4 Inc.
  • EchoStar Communications Corp.