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Digital Satellite TV History



Early Analog Satellite Systems

Like many great things, today's digital satellite systems began as something lesser. Digital satellite's roots can be traced back to the early 1970's when cable companies first began using commercial satellites to receive distant programming content for their subscribers. Prior to this, local cable vision companies were limited to the channels that they could collect from off-air antennas. Satellite technology meant that for the first time, cable vision companies would have access to distant stations, which would not have been possible without it.

At the same time, the TVRO (television receive-only)industry was born as an un-intentioned side effect. Just as cable vision companies were erecting large "C band" satellite dish systems to pull in the many distant channels being broadcast on them, many consumers also began doing the same and receiving them direct, rather than pay for them through their local cable tv company. In the beginning, this was not feasible on a large scale, as a huge 20 meter dish would often be required, at the expense of more then 20 thousand dollars. However as technology progressed and commercial satellite broadcasting power increased, the dish sizes decreased. By the late 1970's, most satellite broadcasts could be received by consumers on 12 foot dishes, costing less than 5 thousand dollars.

12 foot C band Satellite Dish Large C-Band satellite TV dishes were once a common sight in many backyards across the United States and Canada during the 1970's and 1980's.

Many commercial broadcasters began to capitalize on this trend and began to scramble their signals and then charge a fee for unscrambling it. This was especially important when the signal was a premium service, such as HBO, which was dependant on subscriber revenue as it did not offer advertising. By the early 1980's, dish sizes had shrunk to 6 feet for most of the U.S. commercial satellites.

At the same time, a new satellite transmission band, known as "Ku band" was allocated. This band was less prone to interference by terrestrial transmissions and as such could be broadcast at a much high power. This allowed Ku band satellite dish sizes to shrink to less than 4 feet in diameter.


Birth of North American DTH

In the late 1980's it was proposed that the United States should have a direct to home satellite service to compete with the terrestrial cable vision systems. This was based in part on similar successful European models.

The direct to home satellite principle is that of a satellite broadcaster intentionally broadcasting to a subscribers home in exchange for a programming fee, rather than the more roundabout way of TRVO systems of the past, where a person wanting to tap into signals intentioned for cable vision companies could in exchange for a fee.

Ironically, the European models originated from a failed U.S. attempt. In the early 1980's, a company known as Satellite Television Corp., a subsidiary of Comcast and Crimson Satellite Associates built and launched a satellite to be used in a direct broadcast venture. This venture was to have offered 6 channels delivered via 2 satellites. By 1984, they were unable to secure financing and the operation failed. The satellite was sold to a Luxembourg satellite broadcaster, known as Societe Europeenne des Satellite (SES). The satellite was re-named Astra 1A and would become the backbone of the first successful European DBS venture. At the same time, another unsuccessful DBS venture was United States Satellite Broadcasting Company (USSB). Although it failed in 1984, ten years later USSB would be part of the most successful DBS company in the United States.


Introduction of Digital Satellite Broadcasts

The 1990's brought about an exciting technological change that allow satellite programs to be digitalized and then compressed, thus allowing more channel capacity per satellite. This meant that not only would future digital satellite broadcasters be able to offer more channels to their subscribers, but it also meant a more robust picture and sound quality, absent of the snow and crackle of traditional analog satellite broadcasts. Prior to this, satellite capacity was limited as only one channel could be carried on each satellite transponder. Most satellites had only 16 C band and 24 Ku and transponders.


FCC Prepares for DBS in North America

The 1990's brought about some new frequency allocations from the U.S. FCC (Federal Communications Commission). The FCC allocated a new frequency band, dubbed the "DBS band" The DBS band, would be a seperate, higher power Ku frequency. DBS satellites would be spaced a minimum of 9 degrees apart, to eliminate interference with each other and to allow smaller dish sizes due to increased satellite broadcasting power. The DBS frequencies would use circular polarization rather than the traditional linear polarization in use by C band and Ku band since the early 1970's. This meant for no interference from tradition satellite transmissions, easier installations and smaller dish sizes.


Early DTH Players

The early also 1990's saw the launch and failure of 2 new DBS companies, SkyPix, which planned to deliver 80 digitally compress channels to subscribers via a 36" satellite dish. SkyPix was to have utilized leased satellite capacity, having no satellites of its own. It succumbed to financial and technological problems. A second company, Sky Cable, was a partnership between News Corp, Hughes Communications, NBC and various cable vision interests. Sky Cable was also doomed, primarily due to management disputes between the different partners. A third company, Primestar was successfully launched in 1991, with an all analog service using existing medium powered Ku band satellites.

[More Information on FTA Satellite Systems]


PrimeStar

PrimeStar Logo

PrimeStar was a partnership of 6 cable vision consortiums and GE Americom. It was launched in 1991 as an analog DTH satellite service. It converted to an all digital service in 1994, shortly before the official launch of the U.S. Directv/USSB service. It was not technically considered a Direct Broadcast Satellite service (DVB), but rather a Fixed Satellite Service (FSS), because it utilized a traditional medium power Ku satellite to broadcast its signal to its subscribers via a 36" satellite dish and receiver. Primestar offered a 80 channel digital service that was primarily meant to extend the cable companies reach without the tremendous expense of expanding their terrestrial cable vision networks to more rural areas of America.

Early PrimeStar System An early PrimeStar FSS satellite system using a 36" satellite dish and receiver.

After its digital conversion in 1994, Primestar utilized the secure General Instrument's Digicipher system to decode its signal. Primestar had once intended to launch its own DBS satellites into orbit and compete head to head with Directv and then later Dish Network. However numerous problems and a lack of sufficient satellite space would prevent this from being realized. In early 1999, after years of dwindling subscribers, PrimeStar sold its 2.2 million subscribers to Directv in a much publicized sale. Over the next year, Directv slowly upgraded all of PrimeStars customers with new equipment and smaller dishes, thus converting them to the Directv platform. This caused Directv's subscriber count to leap from 4 million to more than 6 million by the end of 1999.


Directv / USSB

Directv USSB Logo

The first company to take full advantage of this new DBS frequency was Directv/USSB. In 1994, two companies, GM Hughes Electronics under the Directv name and United States Satellite Broadcasting Company (USSB) joined together to launch the first successful U.S. direct to home satellite service. USSB had a wide range of premium movie, special interest and premium sports and pay per view channels. Directv, in turn offered a full lineup of popular cable vision favorites and network affiliates. For $699, customers were offered up to 200 all digital satellite channels, delivered to a small 18" satellite dish and receiver. The satellite dish was fixed on one satellite on the sky, the DBS-1 and DBS-2 satellites, located at 101 degrees West Longitude. At the time, the DBS 1 and DBS 2 satellites were the most powerful commercial satellite in existance, broadcasting 120 watts per transponder. The 2 satellites had a payload of 32 DBS frequency Ku transponders each. It was also possible for them to double up their broadcasting power if required, which would allow them to broadcast 16 transponders at 240 watts each. This would allow a reception on a dish as small as 12" or reduce rain fade on standard 18" dishes. The Directv "Digital Satellite System" or DSS would quickly become one of the most popular consumer electronics products of the 1990's. For the first time, the DSS system allowed nationwide television reception on a small dish, that most homeowners and even apartment owners could easily attach to their homes. It offered un-paralled digital picture and sound quality that left analog cable vision companies scrambling to compete. Its 200 channel offerings caused a great many long time cable vision subscribers to seriously re-consider their entertainment choices.

Early Directv DSS System An early first generation Directv / USSB DSS System using RCA Equipment, offered an 8 bit processor, on screen menu and program guide.

Cable companies fought back to retain their market share, spending large amounts on marketing explaining the possible complications that satellite systems offered compared to their simple plug it in and watch approach. All throughout the 1990's, it was commonplace to see exagerated advertisements and commercials of people struggling to install or service their satellite systems. In December of 1998, USSB announced plans to merge with Directv, uniting the two companies into one single entity and allowing Directv to more easily market its programming to its subscribers. In 1999, Directv announced the aquisition of Primestar's 2.2 million subscribers. Late 2003 brought news that News Corp. would aquire a 34% stake in Directv. Today, Directv remains the United States leading digital satellite provider, with over 17 million subscribers. They have expanded their program offerings to include local network affiliates in most major U.S. markets, high definition and ethnic programming in addition to all the cable favorites and premium movie channels.

[More Information on Directv]


Dish Network

Dish Network Logo

Echostar's Dish Network was the brainchild of its founder Charlie Ergan. Echostar Communications Corp. has modest roots in the early 1980's as a small mom and pop C-Band satellite retailer. Recognizing the need for better and cheaper C-Band satellite receivers, Echostar became a leading equipment provider for the flourishing big dish market. Recognizing an opportunity for a direct to home satellite service in the United States, Echostar filed for a DBS license in 1987, which was granted to them in 1992. This license approval left Echostar with the daunting task of raising enough capital to build and launch a direct broadcast satellite TV service including 2 DBS satellites. They succeeded and in July 1995, the first Echostar satellite, Echostar 1 was launched into space where it would achieve a final orbit of 119 degrees west longitude. Echostar 1's 16 130 watt DBS transponders allowed them to launch a competing direct to home service to Directv, also using a small 18" satellite dish and receiver. On March 16, 1996, Dish Network officially began broadcasting their service to customers. The Echostar 2 satellite was successfully launched in September 1996, which allowed Echostar to double its programming capacity with another 16 - 130 watt transponders.

Early Dish Network System First generation Echostar DBS receiver for the U.S. Dish Network system with 32 bit processor, on screen guide and menu.

The Dish Network principles were lower programming costs, which were based 10-20% less than competing Directv/USSB and also lower equipment costs. Dish Network has a significant advantage over its competitor Directv, in that Dish Network in addition to controlling its program content, also controlled its equipment, which was manufactured by Echostar, Dish Network's parent company. In the first 6 months of its existance, Dish Network lower programming costs gained them 100 000 new subscribers, which was faster than any other DBS company in existance. In August of 1996, Echostar stunned the satellite industry with deep discounts on its satellite equipment, which had previously been matched with Directv $999 system pricing. Consumers could now get a complete Dish Network system for only $199 when they purchased a years worth of programming in advance. This was a bombshell to cable vision companies, whose only saving grace was the high dollar outlay for a satellite system, and also to Directv, who could not tach the offer as their equipment was licensed through Thompson Electronics, under the RCA brand name. This promotion skyrocketed Dish Network's sales numbers to more than a million subscribers by the end of 1997.Directv has finally able to compete with the lowered pricing sometime later through an awkward programming rebate program when subscribers bought a years worth of programming up front. Today, Dish Network remains the second largest digital satellite broadcaster in the United States with over 14 million customers, offering a wide range of programming including local network channels, high definition and ethnic programs in addition to all the cable favorites and premium movie channels.

[More Information on Dish Network]


VOOM

VOOM Logo

VOOM had a brief entrance into the North American Direct to home market. VOOM was owned by Rainbow DBS Holdings, a subsidiary of Cablevision Systems Corp. Rainbow had unsuccessfully tried to launch a DTH satellite service since 1997 when it entered into a partnership with satellite manufacturer Loral to launch 2 satellites at the 61.5° and 166° orbital location. Loral missed a required 1999 satellite construction milestone set by the FCC and in 2001 Rainbow entered into an agreement with Lockheed Martin for construction of a DBS class satellite for use at the 61.5° orbital location. The satellite was to be completed in 2003. The original Rainbow service was to broadcast local programming and news to selected markets using the Rainbow 1 satellite's spot beam technology. The service was slated for a 2004 launch.

Despite having 3X the HDTV programming content, VOOM was unable to win the appeal of consumers, fighting to match the long established dominance of Directv and Dish Network and lacking a substantial dealer network. The VOOM operation folded in April 2005, gaining less than 30 000 subscribers in the 20 months of operations.

By late 2003 as Rainbow approached the date of their proposed satellite launch, it became apparent that high definition television was in big demand in the United States. Additionally, the existing U.S. satellite and cablevision providers were at a satellite capacity crunch and were not able to offer much more than 12 HDTV channels as high definition technology consumed 5 times as much bandwidth as a standard definition channel. Rainbow modified their business model to focus on a high definition satellite service, offering over 40 HDTV channels in addition to most popular cable and satellite favorites.

Rainbow had ambitious expansion plans. In addition to their 61.5° orbital location, which was difficult to receive in the Western United States, Rainbow applied for 5 additional Ka FSS satellite slots at 62°, 71°, 77°, 119°, 129°, which was granted in late 2003. Theoretically, this would have allowed them to broadcast hundreds of high and standard definition channels to their subscribers. In 2004, Rainbow purchased 2 addition half-conus slots at 166° and 175° In late 2004, the entered into an agreement with Lockheed Martin fo the construction of 5 Ka band FSS satellites for use in their ka slots obtained in 2003. The satellite construction milestone was 38-50 months.

In July 2003, the Rainbow 1 satellite was launched into orbit and began limited satellite broadcasting operations on October 15 as VOOM. By the year end, they were offering 30 HDTV and 75 standard definition channels, including many VOOM exclusive channels.

Despite their attractive HDTV offerings, VOOM received little more than a lukewarm welcome into the DBS market, entering nearly a decade after competitor Directv Inc. began operations. By the first quarter of 2004, VOOM had only attracted 1200 subscribers. By year end 2004, VOOM had succeeded in winning over only 26 000 subscribers and was clearly a cash losing venture to VOOM's parent company Cablevision.

Cablevision began looking for options and after a bitter internal battle, decided to cease operations in April 2005, less than 2 years after they had begun, becoming the latest victim of the volitile North American digital satellite industry.

Echostar acquired the Rainbow 1 satellite and orbital location in a partial buyout as well as exclusive rights to continuing the VOOM original programming. This allowed Dish Network to expand their HDTV lineup and offer the exclusive VOOM original channels, which Rainbow would continue to operate.




Administrative Announcements
08/04/2008 11:20 AM
In order to give the website a better focus, we are phasing out the less popular areas of the site, including the high definition and digital video recorder areas and forums. This will leave the site focused on digital satellite television and satellite radio.

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