Sign in Subscribe
Internet services

Hughes Electronics Partners with AOL to Develop AOL TV

Strategic Insights

— 1 min read

Hughes Electronics Corp., the world's leading provider of digital television entertainment, has partnered with America Online Inc. to develop AOL TV, a new service that combines digital satellite television programming with AOL's enhanced interactive television Internet service. The partnership includes agreements between two of Hughes' units, DIRECTV Inc. and Hughes Network Systems, and AOL to extend connected interactivity to television. The new service will allow subscribers to access a wealth of information and enjoy a more enriched television experience.

Key Takeaways:

  • Hughes Electronics Corp. has partnered with America Online Inc. to develop AOL TV, a new service that combines digital satellite television programming with AOL's enhanced interactive television Internet service.
  • DIRECTV Inc., a unit of Hughes Electronics Corp., will collaborate with AOL on a new service that combines digital satellite television programming from DIRECTV with AOL's enhanced interactive television Internet service.
  • Hughes Network Systems will design and build the dual purpose AOL TV/DIRECTV set-top receiver.
  • The set-top boxes will be connected to AOL through built-in 56K modems over standard phone lines, and will be enabled for digital subscriber line (DSL) connectivity as well.
  • Hughes Electronics has 7 million subscribers, following the recent acquisition of PRIMESTAR's medium-power direct broadcast satellite business.
  • The partnership will enable DIRECTV to offer its subscribers connected interactivity, a benefit that gives them a far more enriched television experience and access to a wealth of information.
  • AOL has always focused on making the online experience a key part of its members' lives, and this partnership will allow it to extend that interactive experience to connected non-PC devices.

Statistics:

  • 7 million: The number of DIRECTV subscribers following the recent acquisition of PRIMESTAR's medium-power direct broadcast satellite business.
  • 56K: The speed of the modems built into the set-top boxes that connect to AOL.
  • $: Not specified in the source material.
  • 1999: The year in which the partnership was announced.

Sources:

  • BUSINESS WIRE, May 11, 1999
  • Hughes Electronics Corp.
  • America Online Inc.
  • DIRECTV Inc.
  • Hughes Network Systems

Read more