July - The Old CATV Equipment Museum

Transcription

o HOW WE .THREATEN'CAbIE
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SATELLITEDICEST 'AGE
JULY15.1985
EARLY Feedback
While attendingthe STTI/SPACEshow late in
June,I made it a pointto talk at lengthwith dealers,
'uneven
distributorsand OEMs about the oresent
state' of our industry'sfinances.By avoidingthe
temptationto have a boothfor CSD, I had plentyof
timeto sitandtalkquietlywithall levelsof the industry
we havegonewrong'so
andto try to pinpoint'where
far in 1985.
Returningfrom Tulsa,I was greetedwiththe first
onslaughtof seven-page'1985 Dealer Survey
Forms'; more than 30 in the first day's mail alone.
This year's seven-pagesurvey form borderson
'intensive'
being
and I wasworriedthatdealerswould
find everyexcusenot to spendthe 30 to 45 minutes
r e q u i r e dt o c o m p l e t et h i s y e a r ' s d o c u m e n t .I
shouldn'thaveworriedbecauseas we go to pressit
appearswe will have morecompletedsurveyforms
thisyear,by a wide margin,than any previousyear.
We'llhavethe tabulatedresultsin CSD for September 1st by the way, and a very interesting
displayof
the statisticsat our CSD booth in Nashvilleoverthe
LaborDay weekend.
Withmorethana hundredformspiledon my desk
I did a'spotcheck'of the healthof the dealersalesso
farthisyear.I wantto sharethesepreliminarynumbers withyou becauseit may assistyou in yourown
saleseffortsfor the balanceof the summer.
1) ls businessat the retaillevelup, down or the
same?Our initial100+ surveyformssay it is
'1
UP;by 12%over the same period (January
to May 31) of 1984.
2) How muchdoes 12oh-uptranslateto? The average for all dealerscompletingthe first survey
forms turned in was 9.79 systemssold during
May of 1985 (versus7.07 systemsin May of
1984).May was but one of the firstfive months,
however.
3) Dealersratethe following(roundedoff) percentagesfor the firstfivemonthsof the year,to date:
A) January-50/" say it was UP over'84,20%
'the
say down and 3O/" say
same';
cooP's
SATELLITE
DtcEsr Rtr
/z
/z
\.r
EDITION
NATIONAL
B) February- 50Yosay it was also UP, only
10% say down and 40"/"say'the same';
G) March- An almosteven split betweenup
'the
(40%),down (40%) and 20"/"say it was
same';
sa\ it was UP,
D) April- At the retaillevel,7oo/o
'the
10% found it down and 2Ok found it
same'as'84;
E) May - 50o/oagain found it UP, with 25%
'the
reporting down and 25o/"reporting
same.'
Again this caution;these are quicklycalculated
numbersfrom only the first 100 or so survey forms
turnedin and we'll have a detailedanalysisin our
Septemberlst edition.Now, what about cable?
TVRO penetration into cabled areas may not be
risingas fast as some have feared.Whilecertainlythe
numberswill adjust some as hundredsof additional
surveyscome in,the firstgroupaveragesays lhat2So/o
of allTVROssoldare nowgoingintocabledbackyards.
Some have reportednumberscloserto 40 or 50% and
our findingsdisagree.At the same time,wherecable
and TVROdo clash,and TVRO 'wins,'wefound77o/ool
all homes who buy a TVRO discontinue cable after
buyingTVRO.Thatis almost50% higherthanpreviously reported.So it appears,from the preliminarynumbers,thatwhilefewer TVROsoverallmay be goinginto
cabledareas,a greater percentage of those people
who are buyingTVRO in cabledareasare discontinuing
cablethan previouslymeasured.
lf business overall appearsto be up over 1984,
why then are some major(i.e.significant)$istributors
findingbusinessdown by say 20"/"over a year ago?
Perhapspartof the answeris foundin an 'admission'by
Unidenrecpntlythat during May they shippedslightly
morethan 20,000receiversto distributors.lf that is an
accuratenumber,it comesvery closeto equaling50%
of the total TVRO receiveruniversefor the month of
May. And a distributortrying to sell against Uniden,
given those sales numbers,would be in a 'marketshare-loss'positionreferenceone year ago.
C S D / 2 - C o o p ' s S a t e l l i t eD i g e s t i s p u b l i s h e dl w i c e p e r m o n l h b y W e s t I n d i e s
V i d e o ,L t d . ,a T u r k sa n d C a i c o sC o r p o r a t i o nw i t h c o r p o r a t eo l f i c e sa t W I V ' T V ,G r a c e
s ,u r k s & C a i c o sl s l a n d s ,B W l . S a l e s ,e d i t o r i a la n d s u b s c r i p t i o n
B a v ,P r o v i d e n c i a l e T
liason offices located at Fort Lauderdale,Fl. (P.O.Box 100858,Ft. Lauderdale,Fl.
33310;305/771.0505between 9 AM and 4 PM eastern,weekdays).CSD/2 is issued
o n t h e 1 s t h o f e a c h m o n t h a s t h e m i d - m o n t hc o m p a n i o nt o C S D w h i c h h a s b e e n
i s s u e do n t h e 1 s t o t e a c h m o n t h s i n c e O c t o b e r 1 9 7 9 ;t h e ' b i r t h ' o f h o m e T V B O .
C S D / 2i s c o m b i n e dw i l h C s D , a t o t a l o f 2 4 i s s u e sp e t y e a r ,f o r a l l d o m e s t i c( U . S . )
s u b s c r i p t i o n sa n d i s a l s o a v a i l a b l eo p l i o n a l l yt o r C S D r e a d e r so u t s i d eo f t h e U S A .
s f S P A C E ,t h e
A d d i t i o n a l l yC, S D / 2 i s p r o v i d e dl r e e . o f . c h a r gteo a l l D e a l e rl M e m b e r o
i n t e r n a t i o n atlr a d ea s s o c i a t i o no f T V R O ,u p o n r e q u e s tf r o m s u c h d e a l e rm e m b e r s .
C S D / 2i s a l s o a p a r t o f t h e ' T V R OD e a l e lS t a r t e rK i l ' p r o v i d e df r e et o a s p i r i n gT V R O
d e a l e r sw h o l e a r na b o u t T V R O f r o m C o o D ' sm o n t h l v c o l u m n i n R a d i o - E l e c t r o n i c s
m a g a zni e . C S D s u b s c r i p t i o nr a t e sa r e $ 7 5 p e ( y e a t , 2 4i s s u e s ,f o r a lI U S s u b s c rbi e r s
o r w h e r e U S z i p - c o d e sa p p l y ;$ 8 5 p e r y e a r ( U S f u n d s )t o r C a n a d a / M e x i c o$; 1 0 0p e r
y e a r( U Sf u n d s )f o r o t h e r s .A l l c o p i e s s e n t v i a 1 s t - c l a s sA l R m a i l .W e s t I n d i e sV i d e o ,
L t d . i s a ' D e a l e r - P i o n e ecrl'a s s m e m b e ro f S P A C E .C o p y r i g h t i c1r9 8 5b y ' R o b e r t8 . ,
S u s a nT . . K e v i nP . a n d T a s h aA . C o o p e r .
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Uniden Norsat MIAGom
Luior Gonifer Gensat 814-942-s003
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Houston
TrackerWinegard
800-367-8899-natonar
317 E. PleasantValleyRd.
Altoona,PA 16602
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607-324-3435
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SATELLITEDICEST eAGE
DISTRIBUTOR
DOINGS
The Antenna Hut (2141 E. SilverSpringsRd., Ocala,Florida
in Florida,800/824-3106national)has pack32670;8001342-0159
aged a systemof AFC antennasand Lowranceelectronicsto make
availablecombinationC plus Ku band terminals{or dealers.
Finger Lakes CommunicationsCompany (195 ClarkSt.,Auburn,New York 13021;3151252-3151)
has expandedby addinga
10,000squarefoot buildingdesignedto allowdealersto inspectthe
full line of productscarriedby the firm. The new facilitywill also be
equippedfor classroom/seminar
trainingand warrantyrepairservice.
FingerLakeshas alsorecentlyaddedthe NorsatLNA,LNBandstereo
(TVRO)receiversto their productline-upalong with the full line of
AndersonScientificreceivers.FingerLakes also introduced'private
delivery'usingcompanyvehiclesto reducedealershippingcostsand
to speed up the deliveryof equipmentto dealersin the northeast.
Northwest Satellite (715 North Medelia,Spokane,Washington
99202;509/534-5972)
has addedthe SigmaSatelliteMarkll (11foot)
aluminummeshantennato theirDroductline-up.Northwest
alsohas
sales officeslocatedin Seattle,Billingsand Eugene(Oregon):
SatcoUSA(800/362-6781in Ohio;800/362-8619nationally)has
programfor qualannounced
an inventoryfloorplanning(financing)
ified dealers buying from any of their five wholesaleoutlets.The
programis backedby the WhirlpoolAcceptanceCorporationand Borg
Warner.
Satellite Earth Stations Of Florida, Inc. (4360SW 36th Street,
Orlando,Flotida32674i 3051843-0272,
or 800/826-1945in Florida)
openedJuly 15th.GULFCOSatellite(1206Moody,Victoria,Texas
hasalsobecomean affiliateoi SatelliteEarthSlations.
5121576-4179)
S a t e l l i t e R e c e p t i o n S y s t e m s , I n c . ( 1 4 5 C o l u m b u sR o a d ,
Athens,Ohio 45701:6141594-2524)held a 'dish-in'at their newest
wholesaleoutlet in the Pittsburghregion in June. Local retailers
receiveda full day antennaeducationcourseand dealerJudy Kohler
New York)won a $1,000
of KohlerTechnicalServices(Stanfordville,
cash prize from MTl. SRS also reportsremodelingof their DeWitt,
Michiganfacilityis now completewith a new compulersystem incoursesJuly
stalled.SRS will be hostingSPACEdealercertification
26-27-28at six locations:Columbus,Cincinnati,Clevelandin Ohio;
Charleston(WVA),Pittsburgh(Pa) and Lansing(Mi).
Satellite Video Services (RR #1, Box B5-S, Paul Saxe Road,
has a newtollfreewattsline
Catskill,NewYork 12414;5181678-9581)
numberin effectat theirSVS-Pa(Pennsylvania)
store;800/367-8891
lor dealers.SVS also has releaseda new (20 page)catalogof productsfor TVRO systeminstallation,
includingmany hardto find accessory items.Dealersmay call for their free catalogat any of the SVS
locations(Catskill,New York; Hornell,New York, Raymond,New
Hampshireor Altoona,Pennsylvania).
INSTALLComponents
BOMANIndustries (SatelliteProductsDivision,9300 Hall Road,
Downey,California90241; 8O01352-2553
withinCalifornia; 800I4212533 outsideCalifornia)has announcedthe 'ULNA', an ultra low
noisepackagewith a rated noisetemperatureof 45 degreesKelvin.
The new 40 dB gain unit carriesa five year warrantyand comeswith
certifiedtest data.Other modelsare also availablein the same gain
configuration
at 55 and 65 degreesKelvin.Bomanhas also released
specificationson a new BDC receiver,using the 450-950 MHz lF
band; the SR-1600.The receiver has a built-instereo processor
(Matrix,discrete),narrow and wideband selection,stereo volume
controls,vertical/horizontal
selection,a skewslidecontrolanda transponderformatpush button.Bomanalsosays the unit is'descrambler
ready'.
HYTEK (3602 East 20th, Joplin,Missouri64801;4171624-4061)
has introduceda monolithic'chip' LNB unit. The 'SuperB' block
downconverter
has a pencil-pointsizedchipthat includestwo stages
of low noise amplification(gain) plus a complete downconverter.
NEW
PRODU cTs/
)
-{\ urnnr,rE
rEsrsEr
SERVICES/
EVENTS a ( t u * o , c + K U
Frequencystabilityis controlledby a DRO device. Hylek also
announces
their'Millennium
ll' LNAavailable
in 55 to 85 degreenoise
figures.The 48 dB gain unit is non-isolatedin design 6ut claims
stabilityfeaturesbaseduponhighquality'matching'
between,internal,
garnsrages.
MILLENNIUM
Thin Line Designfrom HYTEK
MicrowaveFilter Company $7a3 KinneStreet,East Syracuse,
New York 13057;8001448-1666)
has createdan.interesting'coaxial
bandpassfilter'for use in situationswhere out of band terrestrial
interferenceis causingproblemswith LNA or downconverterfunctions.Model4711 provides20 dB of rejectionat 3.5 and 4.4 GHz,the
nearestbut of band frequencyassignmentstypicallyencountered.
The unitis weathersealed,has DC passthroughfor poweringof LNAs
and type N connectorsfor insertionbetweenthe LNA and the downconverter.Price is $135 and deliverytwo weeks.
NewtonElectronics,Inc. (340E. MiddlefieldRd.,MountainView,
California94043:4151967-1473)
has introducedmodel 1600satellite
simulatortestingat a dealer net price of $995. The test set creates
satellite
transponder
simulatedsignalsat transponders
1,12 and24,
lF signalsat 70 MHz, TV RF signalsat VHF channels3 or 4 and
providesDC for the LNA and downconverter.
Satellite Systems Development (760 North Willow, ltasca,lllinois60143;3121773-6618)
has a low cost azimuthand elevationtool
for site surveys.The unit has adjustablelegs, a 360 degreerotating
horizontalplane, a 90/0/90 degree siting vane and measures 12
inchesin length.The unit is shippedin five plecesand is constructed
from ABS olastic.
DEALERSelling Assists
_-,Conifer Corporation (P.O. Box 1025, Burlington,lowa 52601;
800/358-3058)
has introduceda new approachto servicingdealers
CORRECTION:
directly.Duringthe Tulsa STTI/SPACEshow, Coniferannounceoa
CSDIZfor June 15th reportedon the availabilitvof the SAT-SITE
dealerdirectsales programwith a brochureexplainingthat Conifer
productfromGourmetEntertaining.
The Sat-Siteis a dealerinstalltool
had 'killedthe middleman'.To back that programup, Coniferis now
createdto allow visual check-outof any intendedTVRO antenna
offeringa 60 day 'interestfree floor planningprogrdm,to (qualified)
locationfor siting clearanceof local obstructions.A typographical dealers,100%co-opadvertisingfor dealers,protected'trade'areas,
enor mis-listedthe firm'stelephonewhich is properly2191666-2728. an incentiveand promotionprogramand nationalconsumeradvertis-
PAGE 6/CSD-2/7-85
SATELLITE
DICEST
rg.Coniferrecentlyannouncednew B and 10 foot antennasand new
:ceiverelectronics.
SatcoUSA(800/362-6781
in Ohio;800/367-861
I outsideof Ohio)
as a newdemotrailerfor TVROdealers.ModelGR-1hasa changeble universalmountingpost which they claim can be used with
irtuallyany type or size of transportableantenna.The trailer has
ttractivestylingand a heavy duty suspensionsystem. Dealer net
rice is $825.
Uniden Corporation of America has extendeduntilAugust30th
reircurrentdealerpromotion
rnvolving
a Caribbean
Cruise.Winners
rillhave an all-expense-paid
eightdaylsevennightcruiseinto the
;aribbean
aboardthe USSNorway,theworld'slargestcruisevessel.
he previousculmination
date,July 31st,was extendedto August
Othto allowthe f ull availability
of the (new)Unidenmodel5000,6000
nd 7000 receiversto reach all dealers on an equal basis. The
opularityof the new productshad resultedin an unevendistribution
f the productduringthe tirstshippingperiodand some dealerswere
ot able to participateas they wished because of lhe shortageof
lnidenreceivers.Winningdealerswill departon Novembergth..
IECEIVERS/Receiver
Aids
Anderson Scientific(2693 E. CommerceRd., RapidCity,SD
-3781) willbeginshippinga 12voltoptionalversionof
7702;6051341
reirfulllineof blockdownconversion
receivers
on August15th.The
ew productmakes possiblefully 12 volt operation of the receiver
lus LNA usingthe 12 volt supplysystemin a recreation
vehicle,for
xample,eliminating
the needfor an external110 VAC connection.
Anderson has also announceda list of distributorswho have
&npletedAndersonadministeredtrainingand who now qualifyas
ervicecentersfor repairon AndersonST1000,ST2000,ST910,
iT1010,ST2010and SP710products.Includedare: HalvorsonDisibuting(Yankton,SD),StarliteTVRO (Libby,Mt.),Symtel(Albuquerue, NM), ProctorElectronics(Davenport,FL.), K and M Resources
Mathis,Tx.), Heinrich'sElectronics(Shickley,Ne.), Reddwood
y'holesale
(Winston,Or.),West CoastSatelliteService(Greenbrae,
)a.),SaturnDistributing
(Jackson,Ky.), InterstateElectric(Dallas,
(Buffalo,NY).
x.) and Moog Electronics
lrt u
t!
il
CONIFER'SCNF Series offers push-button 60 and 80 MHz
The line up includestwo way and four way splitterswith a frequency
responsefrom 900 to 1500MHz with powerpassingthrougha single
port.A new A-B switchfor dual LNA/dualBDC systemsis functional
from 400 to 1500 MHz with 30 dB of isolationbetweenports.And, a
new type ribboncablewith dual runs of RG-6,sweeptestedthrough
1500MHz for highfrequencyBDC applications,
is also available.
R.L. Drake Company (P.O. Box 112, Miamisburg,Ohio 45342;
5131866-2421)
is nowshippingtheirnew model424 and 4248 (block)
receiverpackagesfeaturinginfraredremotecontroland audio-seek
tuning.The unitsaredescramblercompatiblewitha concealedclamp/
unclamped
switch.The B versionuses the 950-1450MHz block lF
band and includesinput switchingfor dual LNB installations.Retail
pricingis $699 for the singleconversionunit and $759 for the block
unit.
Drakeis alsoshippingtheir3428, a blockdownconversion
variationof the popular324 receiver.The new unit alsousesthe 950-1450
MHz bandfor lF and a dual polarityadapteris availablefor automatic
horizontal/vertical
switchingin dual feed installations.
Geotech Communications (355 SinclairFrontageRoad, Milpitas,California95035;408/943-8800)
has introducedtheir8300model
which featuresvideo and audio 'fine tuning' and odd/evenformat
buttonwithan illuminated
tuningmeter.The 8300unitis designedto
compliment
the stylingof the presentlyavailable8200 16 satellite
antennapositioner
system.
InternationalSatellite Systems/lSS(1004 Del Norte, Menlo
Park,California94025; 4151853-0833)
has introduceda new block
downconversion
commercial TVRO rack mountinqreceiverfor
CATVand SMATVapplications.
The receiverhas a built-interrestrial
interferencetrap system (switchable),lF polarityswitching,full frequencysynthesis,unclampedlooped-through
basebandfor use with
anytypeof scramblingservice,and a reducedpricingstructure.Model
GL-5000data sheetsare availableto dealersuoon reouest.
ISS has also introduceda 16 channelCATV/SMATVcombining
nelworkdesignedto allow up to 16 separatechannel inputs to be
combinedintoa singleoutputcable,withgain throughthe package.
Inputsfrom + 45 dBmVto + 60 dBmVcan be 'leveled'to + 60 dBmV
for the outputlineto drivethe cableTV system/SMATVsystem'trunk'
in.
ANDERSON'sKeith Eliminates110 Volt Requirement
Conifer Corporation(P.O. Box 1025,Burlington,lowa 5260'|;
100/358-3058)
has introducedtheirCBF seriesof Tl filters.The notch
trap)devicecenters10 MHzaboveand belowthe centerlF frequency
vith lF centerchoicesof 70, 130and 134 MHz available.Notchdeoth
s 45 dB (minimumclaimed)and are DC passivefor voltagefeedthru.
CZ Labs (P.O. Box 95, Garnerville,New York 10923;914t9471554)has createda line of productsdesignedto assist the TVRO
nstallerwith his 900-1450MHz block downconversioninstallations.
ACTIVE
16 ChannelCombinerFromISS
LUXORNorth AmericaCorporation(P.O.Box 32, Bellevue,
NEWPRODUCTS/
continuespage26
NUMBER
ONE
FOR
SIX
YEARS
ltJ
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IIJ
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o
a
O
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UJ
o
t
o
and
STILL
number
ONE!
il
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o
CSD/COOP'SSATELLITEDIGEST.The ONLY industrypublicationthat was 'there'when this industrybegan,
helpinglaythe foundationfor whathastodaybecomea billion-dollar
consumerbusinessfunctioning
worldwide!CSD/
twocompleteissuesper month(CSD/2issuedon the 'l5thof eachmonth)coveringEVERYimportantaspectof TVRO
fromhands-onequipmentreportsto detailedlearningcoursesdesignedto helpyouown andoperatea moreprofitable
TVRO business.CSD/ strongopinionsin an often confusingmamby-pambyglut of meaninglesspress releases,
claims and counterclaims,and, 'softshoeroutine'editorialswhich say nothingand do nothing.CSD/ a virtual
'correspondence
course' in TVRO communications
designedissue after issue to make you smarterand better
equippedto dealwith a run-awaytechnologybase.CSD/not a'give away'publicationpaidfor by advertisersupport
'advertiser
and
favorable'editorials;
supportedBY dealersand distributors
becauseit is the ONLY publication
willing
to standbehindand supportdealersand distributors.
CSD/"Coop's" SatelliteDigestfromthe man who startedit all;
and THAT says it all!
T . I I I I I I ' I T I I ' I I I I I ' I I I I T I I T I ' - I I I I I I I I ' - I I I I I T I I " ' I ' I I
Ei
S I G NM E U P !
(whereUSzipcodesapply)for24issuesof CSDviaAlRmail;$75
ENTERMY U.S.subscription
(US
funds)enclosed.
- Enter my 24 issue subscription
CANADA/MEXICO
to CSD, via AlRmail;$85 (US funds)
enclosed.
- Entermy 24 issuesubscription
ELSEWHERE
to CSD,via AlRmail;$100(USfunds)enclosed.
IIJ
NAME
E
E
o
@
o
t
ul
o
E,
o
Company(if applicable)
Address
Town/City
MAIL order with payment
ENCLOSED,
or. use V|SA/
Masterchargeby calling
305-771-0505 weekdaysbetween 9 AM and 4 PM easrern.
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zip
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CSDMagazine
P.O.Box 100858
Ft. Lauderdale,
Fl. 33310
PAGE SiCSD-2/7-85
DICEST
COOP'S SATELLITE
Whatthis meansis that:
(A) Somecablesubscribersare switchingfrom cableto
TVRO, and more can be expectedto do so in the
future,as the priceof TVROsystemsdeclinesdramatically;
(B) A potentialrevenueopportunityfor cable operators
and programmers
from sellingsatelliteprogramming
to TVRO householdsis lost.
lf, however,satellitesignalsare scrambled,cable programmingbecomessecuredfrom unauthorizeduse. At the
same time, scramblingmay be accomplishedin a way that
makesit convenientfor authorizedTVRO homesand other
earthstationownersto purchasecable programming.
The NationalCableTelevision
Association
commissioned
Malarkey-Taylor
Associatesto conducta studyof the economic effectsof scramblingcableprogramsignals.This report
presentsthe resultsof a financialcost-benefitmodel developedby Malarkey-Taylor
l T D I D N ' T ' J u s tH a p p e n '
to analyzethe benefitsand costs
U n t i l a t ei n A p r i l t, h eo n l ys a t e l l i t pe r o g r a m m esri n g i n gt h e of scrambling
21 cableprogramservices(6 pay and 15 basic
'scrambling
song'loudand clearwas HBO.Then,suddenly,it services).We focus on the direct economic benefits and
c h a n g e d ;n e a r l y t w o - d o z e nc a b l e p r o g r a m m i n gs e r v i c e s costs to cable operatorsand programmersof scrambling
joinedin the chorusand followingwhat apparentlywas the satellite
signalsand sellingscrambledprogramming
to TVRO
'hymn
same
book' began chantingthe same refrain.The owners.
messagewas clear; cable, most of cable,would scramble
mostof its satellitedeliveredprogramming.
So wheredid the COSTSOF SCRAMBLING
'cue'
to open the hymn book originate?
An infra-structure
must be set up to implementsatellite
T h e N C T A o r N a t i o n a lC a b l e T e l e v i s i o nA s s o c i a t i o n ,
scrambling,
andcapitalcostsmustbe incurredfor scrambling/
cable'sequivalent
of SPACE,commissioned
a detailedanalydescramblinghardwareand software.The infra-structure
s i sa n ds t u d yo f t h e ' h o m eT V R Op r o b l e m ' a ncdo n s u l t i nfgi r m
shouldefficiently
servethe needsof operators,programmers,
Malarkey-TaylorAssociates signed on for the job. The
equipmentmanufacturers
and TVRO households,by providactualreleaseof the MTA studywouldnot be publicuntilthe
ing for the securityof programmers'signalsand delivering
NCTA gatheredin Las Vegasfor their annualconventionin
scrambledprogramming
to TVRO homes.
earlyJune.However,somemembersof the cablecommunity,
One possible configuration of the scramblinginfraapparentlyexposedto pre-releasecopiesof the document,
structureis shownon Chart 1. Programmers
scrambletheir
beganto speakout on the issuein mid-May.We reportedon
signalsand transmitthem to the satellitevia an uplink.The
'new
this
c a b l ec h o r u s 'i n o u r J u n e 0 1 i s s u eo f C S D a n d
signalsare then receivedand decodedby cable operators
broughtUnitedVideo'sRoy Bliss to the TV screenon May
who have installeddescramblersat the headend,and by
30thduringa BORESIGHTsegment.
TVRO owners who have purchased/leased
a decoderand
The Malarkey-Taylor
Associates'Studyof the Economic
orderedthe programming.
A centralhostcomputeractivates
lmpact of Scrambling on Cable Operatorsand Programand de-activates
TVRO home decoders,monitorswho is remers' is nowwidelyavailable.
However,chancesarethatyou,
ceivingscrambledsignalsand providesdatato programmers
the TVROdealeror TVROdistributor,
may not haveseenthis for
billing.A programmerwould have access to this host
document.So CSD is republishing
the documentas releaseC,
c o m p u t e ra n d u p l i n k s y s t e m f o r a o n e - t i m e - o n l a
yccess
'in{he-margin'
essentiallyunchanged,except for our own
chargeof approximately
plus a share of annual
$100.000,
commentsandobservations
wherewe believesomeadditinal
administrativeexpenses.Administrativecosts of the host
explanationis required.
computer
systemare estimatedat no morethang1 millionper
Remember,please,you are readingwhatstartedoutas an
year (2).
'insider
cabledocument'and the audienceenvisionedfor this
In additionto the hostcomputeraccesscosts,scrambling
documentwas not TVRO dealersbut ratheryour friendly,
uplinkexpenditureswill be requiredfor a computerat the
neighborhood,
cable operator.
s c r a m b l i n gf a c i l i t yt o c o n t r o ls i g n a l a d d r e s s a b i l i tay n d a
scramblingsub-systemthat providesfully redundantsignal
scrambling
andencryption.
Theseexpenditures
areestimated
INTRODUCTION
at
per
approximately
scrambledprogramservice,or
$200,000
'l
Approximately millionU.S.households
own TVROsystemsor backyarddishes.At least40,000newbackyarddishes
are beingsold eachmonth,and aboutone out of everythree
1/ Our estimates of TVRO sales are derivedfrom calnew dish salesoccurinsidecablefranchiseareas.lt is esticulationsand projectionsdevelopedby The Home
matedthat there will be between4 and 6 millionbackvard
SatelliteNewsletter(Volume1, #1, March 4, 1985),
d i s h e si n A m e r i c ab y 1 9 9 0( 1 ) .
with appropriatemodificationsbased on MalarkeyTiis rapid growth of TVRO is a problemfor the cable
Taylor'sexperiencein the industry.
industry,not becauseTVRO is an alternateentertainment
2/ Estimatesof the one{ime accessfee, annualadmindeliverysystem,butbecausecableprogramsignalsarebeing
istrativecosts of the host computerand scrambling
receivedfor free by some households(thosewith TVRO),
uplinkcostsare derivedfrom interviewswith hardware
whilecablesubscribers
arepayingforthesameprogramming.
manufacturers.
NCTASTUDY
REVEALSHOWWE
THREATEN
CABLE
e/csD.2/7.85
CHART I
SCRAMBLI
NG/ DESCRAMBLING
INFRA-STRUCTURE
x
?
S A TE L I T E S Y S T EvI t O P E R A O R
I
UPLINK
A T A I N S E R T I ON
A U T H O RZI A T I O N
D A T A S T R EA M
CONTROL iOMPUTER
SYNC
ROGRAM
TVROHOME
A U T H O R I Z ,ATTI O N
I N F O R M A TOI N
O
z
TU
t
l
STUDIO
B U S I N ES S
OFFICE
PROGRAMMER
I
S A T EL L I T E
R E CE I V E R
DECODER
o-
cHART oNE/ The'scramblingsystem'envisionedand modeledby.Malarkey-Taylor
Associates.Notethe chart does not actually
'show'
a cable system operator 'presence'in graphic form. The written texi coriects this 'oversioht.,
a total of $4.2 millionif 21 services scrambletheirsignals.
Thereare,to be sure,otherproposedconfigurations
and
systems for implementingscrambling,and some may be
equallyor even more cost-effective.
For purposesof this research,cost estimatesare basedon the confiouration
shown
in Chart1.
It shouldalsobe notedthatit may be possiblefor programmers to incur lower scramblinguplinkcosts,especiallyif a
cooperative
organization
wereto be formedfor the purposeof
order taking, scramblingsignals,interfacingwith the host
c o m p u t ea
r n d , p e r h a p sb, i l l i n g .
servicethat it carries.In addition,at least one spare descramblerwouldbe neededfor eachsystem(or about20%ot
total descramblers
for spares),and additionaldescramblers
may also be requiredfor systemswith morethan one autonomousheadendreceivingdirectsatellitesignals.
lf 21 programmers
scrambletheirsignals,we estimatethat
a totalof 100,000headenddescramblers
will be reouiredfor
the industryas a whole,at a costof approximately
9500each,
g50 million.
for a total initialcapitalcost of approximately
6 Pay 15 Basic
Services Services Total
COMMENT:
TheMalarkey-Taylor
scenario,
witha'hostcomputel
andindividual
basicandpremium
services
contributing
totheinstalla- Headenddescramblers
tion,upkeepandoperation
of the hostcomputer
hassubsequently Spares and others
becomethe modelfor a widerangeof would-beprogramservice
planners.
Theconcept
actually
originated
witheitherHBOor Canaan
Communications
morethanoneyearago.Seecomments
TotalDescramblers
of M/ACom'sJim Bunkerin CSDforJuly1st,page9.
TotalCost(@ $500per)
Headend Descramblers
For each programservicethat scramblesits satellitesignal,one descrambler
unit is requiredat the headendof every
affiliate.
Theseheadenddescramblers
arethe dominantcaoital costs of descrambling,
since every cable systemwill requireone headenddescrambler
for eachscrambledprogram
23,000 54,000 77,00o
7,000 16,000 23,000
30,000 70,000 1O0,OOO
$15M $35M $soM
COMMENT:The pricefor cable-gradeVC2C descramblershas
now droppedto $385 per unit accordingto M/A-Com'sJim Bunker,
interviewedin CSD for July 1st.
Over time, as new builds, re-builds and upgraoes occur,
additional headend descramblers will be needed. For the
PAUtr lU/UltU-Zl/-UC
J
Period1986through1990,we project30 majornew builds,
about75 smallnew buildsper year and between400 and 500
systemrebuildsor upgradesper year.The totalcapitalcost of
for thesenewbuildsand upprovidingheadenddescramblers
gradesis estimatedto be between$2 and $2.5 millionper
year.
'21
serThe actualidentityof the to-be-scrambled'
COMMENT:
hasnever
and15basicservices,
vices,notedhereas 6 payservices
the totalnumberof satellitechannels
Additionally,
beenrevealed.
(i.e.Cinemax,
HBO,
services
than21sinceseveral
involved
isgreater
operatea pairof feedsforeastand
TheMovieChannel)
Showtime,
ofscrambledchannels
westcoasttimezones.Thusthetotalnumber
25 or morein thisplan.
becomes
Allocation of Capital Costs
capiTo determinethe net financialimpactof scrambling,
tal costs must be allocatedbetweenoperatorsand programf romthefinancialbenefitsof scrambling.
mersandsubtracted
Becausebothoperatorsand programmersstandto benefit
from industry-wide
scramblingof satellitesignals,Malarkey-
l f,LLl
I f, rJr\JtJ
I
Taylor'sanalysisassumesthat operatorsand programmers
neededto implementscramsharethe capitalexpenditures
bling,with the sharesallocatedas follows:
A) Pay programmers pay for the headenddescramblers
for theiraffiliates(thoughnot for spares).
B) Operators pay for the headend descramblersfor
basic servicesthat they carry.
payfor scrambling
C) Payand basic programmers
uplink
COSIS.
D) Operators pay a portionof the centralhost computer
who are unaccesscharges,for those programmers
able to cover the $100,000accessfee from their own
r e s o u r c e s .O f c o u r s e ,o t h e r p o s s i b l ef i n a n c i n g
arrangementsare feasible, such as hardware suppliersfinancingpan of these costs.
Chart 2 showsthe sharesof totalcapitalcostsof scrambling,allocatedamongpay programmers,
basicprogrammers
and operatorsaccordingto our assumptions.
COMMENT:
Someof the largermultiplesystemoperators
(MSOs)
haveoffered
to paytheuplinkscrambler
costsforthemargin-
CHART 2
A S S U M E DS H A R E SO F C A P I T A LC O S T S O F S C R A M B L I N G
r986 -
lSgO
PAY PROGRAMMERS
OPERATORS
BASIC PROGRAMMERS
CHARTTWO/ How the entrance-fee(capital)costs of creating a 21 channel/servicescrambled satellite environment would be split
between programmers and cable operators. Note the cable systems would carry the bulk of the dollar investment 'load.'
F
DICEST
COOP'S SATELLITE
PAGE11/CSD-2/7-85
'basic'services.
examTherearenospecific
al (orstillmoneylosing)
ARTS,Bravoand
Channel,
plescited,butit is likelythatTheWeather
if theMSOs
morepalatable
of otherswouldfindscrambling
a handful
pickedup theiruplinking
expenses.
BENEFITSOF SCRAMBLING
The followingpotentialrevenuesourcescouldbe tapped
by cable operatorsand programmersif an effectiveindustrywide scramblingsystemwere in place:
1) Sale of cable programmingto TVRO householdsinside cabletranchiseareas.
to TVRO householdsout2) Sale of cableprogramming
side cablefranchiseareas.
to thosecurrentand future
3) Saleof cableprogramming
cable subscriberswho would otherwise buy a backyard dish and get free programming.
4) Sale of cable programmingto those SMATV operators, hotels,bars, etc. who currentlyreceivedirect
withoutconsatellitesignalsand re-sellprogramming
to pay for the programming.
tractualarrangements
5) Greatersubscriberretentiondue to:
P r o g r a m m e r sr e - i n v e s t i n gp a r t o f t h e i r i n c r e m e n t a lr e v e n u e sf r o m T V R O a n d S M A T V
the
salesintotheirproduct,andtherebyenhancing
qualityand appealof cable programming.
Operatorsre-investingpart of their incremental
revenuesirom TVRO sales into plant, service,
marketing,etc.,and therebybetterservicingsubscribers.
6) Increasein local advertising revenues to operators
due to highersubscribercountswith scramblingthan
without.
7) Sale, lease or servicingof TVRO systems and inhomedecoders(i.e.,the hardwareside of the TVRO
business).
8) The ability of programmersto know exactly who is
receivingtheir Programming.
GOMMENT:
Oftheeight'benefit-points'
cited,keyarenumbers
3,
programming
4 and7. By makingthe costof scrambled
high, and
applicable
to allTVROowners,cablehopesto persuade
consumers
to choosecableratherthanTVRO(3).Thispointcomesback,more
in the nextsub-heading.
strongly,
as 'salvaged
subscribers'
Cable
continues
to locateSMATVsystems'taking'HBOandotherservices
withoutbenefitof serviceconiracts
andcableoperators
continue
to
hotelandmotelproperties
losecommercial
customers
todish-owning
(4).Although
thestudysaysit willfocusonlyon benefits
1 through3,
thatthe cableoperatorshouldalso
benefit
sevenclearlysuggests
C H A R T3
S A L V A G E D S U B S C R I B E R SA T T R I B U T A B L E T O S C R A M B L I N G
Prolect6d Sales of TVROs lnslde Cablo Franchlses
TVRO Wllhout Scrambling
o
o
2.2
t
q
0 5
tJ
o
f,
Non-Sub scrlb er s
=
II
I
I
o
T
1.7
Salvaged
Subscr lbere
TVRO Wlth Scrambllng
19 8 5
I 986
19 8 7
1988
19 8 9
1S 9 0
'salvagedsubscriber'is one which the local cable system operator 'retains'or 'holdsonto' as a result of satellite
CHARTTHREE/a
drop cable by 1990
programscrambling.The study estimatesas many as 2.2 million US homes would purchasea TVRO and
'salvaged'
by cable are
ivittrioutsignal scrambling;that number drops to 0.5 millionwith scrambling.The 1.7 million subscribers
also 1.7 million home TVhO system sales'lost'by the TVRO industry, if this forecast is accurate.
PAGE 121CSD-217-85
DICEST
COOP'S SATELLITE
sell TVROsystems(retail);i.e. "the hardwaresideof the TVRO
business."
SalvagedSubscribers
lf current and potentialsubscribersface the choice of
payinga monthlyfee for cable programming,or buying a
The cost-benefitanalysispresentedin this reportdeals
backyarddish and receivingall programming
for free, some
onlywiththefirstthreebenefits:sale of scrambledprogramwilloptforthedish.lf insteadeveryonemustpaya monthlyfee
ming to TVRO households inside and outside cable
for satelliteprogramming,
with or without a backyard dish,
franchises, and prevention of subscriber erosion to
manyof thosewho wouldhaveoptedfor the dishwillnowtake
TVROS.The otherbenefitsof scramblingarejust as real,and
cable.
positiveimpacton the cableindustry,
couldmakea significant
Chart 3 showshow our estimateof salvagedsubscribers
though attemptsto measuresuch benefitsare beyondthe
was derived.The saleof TVROsinsidecableareasis conserscopeof this study.
vativelyprojectedto grow at an annualaveragerateof 650lo,
if
thereis no scramblingof satellitesignals(toplineon Chart3).
lf, on the other hand, most cable services scramble their
ENTRANCEINTOTVRO BY CABLE:
the sale of TVROs insidefranchisesis expectedto
signals,
Brooksi The SatelliteStore,.Da 1984 launchedfranchisestore
show minimalgrowth(bottomline).The differencebetween
operationheadedup by a formerexecutivef rom M/A-Com,has begun
the top and bottomlineson the chartrepresents
the potential
aggressivemarketingof their franchisestore concept directly to
cable televisionsystem operators.In this cable trade-publication lossof cablesubscribers
to TVRO,whilethe areabetweenthe
advertisement,Brooks tells cable "We are cable friendly" and it
dottedline and bottomline reoresentsthe actual. estimated
notes"We want cable operators as franchise owners . . .". Some
loss of subscribersimplemented.
'cable
haveinterpreted
the
UNfriendlv
to TVRO.
friendlyattitude'ofBrooksas beingquite
COMMENT:
Thisiswhatit is allabout;everythingelseis hypeand
hyperbole.The cableindustrylookedat how manysubscribers
it
couldlose,overall,
(Chart
by 1990andthenumber
wassignificant
3).
'value-per-subscribel
At the 1990projected
of $1094,cableas an
industry
saw'assels
draining'
awayto TVRO.Cablesystemowners,
rightfully
regardeverypayingsubscriber
orwrongly,
asan'asset'and
asUnited
Video's
RoyBlissnotedinourJune1stissueof CSD,they
are"paranoid"
aboutlosing'their(assets)
subscribers.'
Estimatesof Direct Financial Benefits of Scrambling
A financialmodelwas usedto estimatethe net operating
incomethatwillaccrueto cableoperatorsand programmers,
f romthe saleof scrambledprogramming
to TVROhomesand
fromsalvagedsubscribers,
if 21 cableservicesscrambletheir
signalsby early 1986.High,mediumand lowestimatesof net
operatingincomewere developed,basedon three assumpt i o n s a b o u t t h e a v e r a g er e v e n u e p e r T V R O h o u s e h o l d
obtainedby operatorsand programmersfrom the sale of
scrambledprogramming:
Highestimate:
$26.00per TVRO householdin 1986
Medium estimate: $21.00per TVRO household in
1986
Low estimate:
$16.00per TVRO householdin 1986
(Forall threerevenueestimates,the averagerevenueper
salvagedsubscriberremainsat $21.00, approximately
the
industryaverage.)
The mediumestimateof $21.00 is basedon an assumotion that scrambledprogrammingis sold to TVRO homesat
about the same prices as those charged to cable subscribers.
The modelalsoassumesthatcableoperatorsaggressively marketscrambledprogramming
to TVROhouseholds,
both
inside and outside franchiseboundaries,and operators
achievea 90o/"share of scrambledprogrammingsales to
TVRO homes inside franchisesand a 4oo/oshare outside
franchises.
Scrambledprogramming
that is not distributed
by
cableoperatorsis presumedto be distributed
eitherthrough
directsalesby programmers,
or by third partydistributors.
COMMENT:
Malarkey-Taylor
suggeslsthat withintheirown
franchise
territory,
cablesystemswill sell 90%of allTVROowners
programming
theirscrambled
(descramblers,
and perhaps'hardware')whilein theregionsurrounding
(cabled)
thefranchise
region,
theywillsell40%oftheTVROsystems
programsold(descramblers,
13/csD-2/7-s5
SATELLITE DICEST pAGE
ming,andperhapshardware).
Extrapolation
of the Malarkey-Taylor
numbers
reveals
theyanticipate
by 1990therewillbe 1.6homes
outsideof the cabledareaswithTVROfor eachhomewithTVRO
withina cabledarea.ThismeansMalarkey-Taylor
is suggesting
that
cableoperatorscould 'capture'59%of the totalTVRO'marketplaceuniverse'by 1990.
The modelgeneratesthe followingnet operatingincome
estimatesfor the period1986through1990,beforeaccounting for taxes,interestand capitalcosts:
Range of Estimates
High
Medium Low
$ltl
$lv
$M
CableOperators:
692.6
604.5 516.3
CableProgrammers:
Total
519.5
424.3 329.2
1 . 2 1 2 . 1 1 . 0 2 8 . 8 845.5
Chart 4 illustratesthese benefitsto ooeratorsand programmersbv sourcesof income.
A few oointsshouldbe noted:
1) The estimatesare net presentvalues of gross revenuesminus operatingexpensesprojectedfor the
five year period.
2) Operatorsare shown to obtain a larger share of net
operatingincomethan programmersin part because
operatorsderivegreaterrevenuefrom salvagedsubscribersthan programmers.
COMMENT:
Malarkey-Taylor
findsthatfor an expenditure
o{
will net (aftercapitalcosts,taxesand
$40M,the cableoperators
interest)
asmuchas$280MfromtappingintothehomeTVROmarket.
That'sturningmoneycompletely
over7 timesin fiveyearsor the
equivalent
of nearly260%interest
oninvestment
withinfiveyears;not
'salvaged
bad.Infact,whenyoualsoaddtheirestimated
1,705,000
subscribers'with
a cumulative
assetvalueof morethan$1.7B.the
greater
returnbecomes
considerably
than'usery.'
NET FINANCIALIMPACTOF SCRAMBLING
The net financialimpactof scramblingis defined,for the
CHART 4
O P E R A T I N GI N C O M EF R O M S A L E O F P R O G R A M M I N G
T O T V R O H O M E SA N D S A L V A G E DS U B S C R I B E R S
Nel Present Values for lhe Perlod 1S86 - 1S90
800
700
600
500
o
o
400
=
@
3CO
200
100
o
LOW
MEDIUM
HIGH
$ 18/Month
Average TVRO Revenue
$2 1/Month
$26lMonth
CHARTFOUR/Additionalincometo cable programmersand localcablesystemsat three subscriber-dollarlevels,per month as a
resuft of scrambling. The study assumes lhalT0/o of all TVRO served homes would subscribe to scrambled programming, to
arrive al these numbers,
PAGE14tCSD-2t7-85
COOP'S SATELLITE
DICEST
purposesof this research,as the differencebetweenpresent
valuesof net operatingincomesfrom scrambling(benefits)
and total capitalcosts.The researchindicatesthat the total
direct financial benefit of scramblingto cable operators
M/A-COMAccepting Orders
M/A-Combegan acceptingformal orders for home style
TVRO descramblerson June 18th. Parts to build the first
100,000unitsare reportedlybeingassembledby the firm for
productionof VC2000Edescramblersin their Puerto Rico
facility.
F r a n k D r e n d e l , V i c e C h a i r m a no f M / A - C o m a l s o
announcedthat "We expectthatwith (other)equipmentsupplierslicensing
ourtechnology,
morethansufficient
quantities
of consumerunitswill be readilyavailableby the summer of
1986(emphasisadded;ed.)"Drendelalsonotedthatthe firm
has produced'morethan 25,000(CATV)headenddescramblersto date'.
andprogrammersfar exceeds the total costs. This seemsto
be true for virtuallyany set of reasonableassumptionsand
estimates,
as long as scrambling is industry-wideand the
scramblinginfra-structureis reasonablycost-effective.
As shownin Chart5, ourcost-benefit
modelgeneratesthe
followingnet presentvaluesof cash flows,over a five year
period,afterdeductingcapitalcosts,interestand taxesfrom
the scramblingrevenuestreams:
Range of Estimates
High
Medium Low
$M
$M
$M
CableOperators:
283.1
242.0 200.9
CableProgrammers:
Total:
229.1
184.8 140.5
512.2
426.8
341.4
It must be rememberedthat incrementalrevenuesfrom
SMATVandfromhotels,motelsand barsare not included in
the above estimates.
Chart 5
N E T F I N A N C I A LB E N E F I T SO F S C R A M B L I N G
N e t P r o s e n tV a l u e s t o r t h e P e r i o d 1 S 8 6 - 1 S 9 O
500
400
c
:
300
200
100
LOW
$ 16/Month
MEDIUM
$2 1/Month
HIGH
$ 28/Month
CHARTFIVE/Netdollarsto cableoperatorl(solid
gray)andcableprogrammers
(diagonal
shadedarea)as a resultof threedifterent
pricingstrategies.
Accordingto Malarkey-Taylor,
the typicalUScablesubscribinghomepresenilyspendsSZf a mJnttrwiin ttre
cableoperatorfor both basicand some levelof premiumprogramming.
15/csD-2/z-85
SATELLITE DICEST eAGE
These bottom-lineresults(see Chart 5) are basedon the
assumptionthat operators aggressivelymarket scrambled
programming
to TVROhomes,insideand outsidefranchise
boundaries.We alsoassumethatprogrammerswillbe selling programmingdirectly to a significantportion (40o/o)ol
TVROhomesoutsidefrancises,and thesedirectsalesmake
financialbenefits
to programmers'
a substantial
contribution
from scrambling.
Anotherway to lookat the financialbenefitsof scrambling
to operatorsis to consider the market value of currentand
prospectivesubscriberswho would switchto TVROs if there
were no scrambling.
We estimatethese salvaged subscribers as follows:
Cumulative
Salvaged
Subscribers
Year
Cable Operators' Perspective
The modelsuggeststhatcableoperatorsin the aggregate
will gain between$200 and $280 million incrementalnet
revenues from scrambling(aftercapitalcosts,taxes and interest)over the next five years. The capitalcostsof headend
descramblersfor 15 or so basicprogramserviceswouldtotal
about$40 million,at most,and this initial investmentwould
be recouped within the first year of scrambling,il operators
undertooksuch an investment.
This is a case where the short run financialadvantage
coincidesand reinforcesthe long run objectiveof insuring
industrysecurityand stability.
1986
1987
't988
71,500
202,500
478,500
1989
909,000
1990
1,705,000
By 1990,the market value of these salvaged subscribers (at $1094 per subscriber,inflatedfrom a currentyear
estimateof $900)wouldbe approximately
1.7billion dollars,
implyingan increaseof $1.7 billionin the marketvalueof all
cablesystems in 1990,withscrambling
comparedto without
scrambling.
Of course,the marketvaluationper subscriberis
CHART6
B E N E F I T SA N D C O S T S O F S C R A M B L I N GT O H Y P O T H E T I C A LC A B L E S Y S T E M
300
280
260
240
220
200
o
E
REVENUES
180
o 16O
J
o
f rao
{4}
O P E R A T I N GI N C O M E
120
too
60
40
CAPITAL EXPENDITURES
19 8 6
1987
I sB8
't
989
CHART Sl)0 A hypothetical cable system with 15,000 subscribers would realize additional operating revenues approaching
$280,000per year by 1990,as a result of cable satellite scrambling. Additionally, the same cable system is expected to retain (and
add) 550 ('salvaged')subscribers between 1986 and 1990; an increase of that cable system's net worth by nearly $600,000.And
THAT is the bottom line; retentionof subscribers.
PAGE 16/CSD-2/7-85
COOP'S
constantly
changing,and couldin factbe higheror lowerthan
our projectionfor 1990.
madethe followingassumptionsabouthowscrambling
will
take place.
1) At least2l cable programmingserviceswillscramA HYPOTHETICAL
CABLE SYSTEM
ble theirsatellitesignalsby the beginning of 1986,
and implementa user-friendly way for TVRO ownThe financialimpactof scramblingon cableoperatorscan
perhapsbe seen more clearlyby lookingat a singlecable
ers to buyandde-codescrambledprogramming.
The
scrambledserviceswill includeat least six major,
sysrem.
nationalpay programmers
and about 15 basicprogConsidera hypotheticalcable system, of some 15,000
rammers(including2 or 3 super stations).
subscribers,
offering10 channelsof basicsatelliteprogrammingand3 or 4 pays.Afterindustry-wide
scrambling,
assume
2) A cost-effectiveinfra-structurewill be establishedto
the cablecompanyaggressively
marketscableprogramming
enableprogrammersto scramble,operatorsto deto TVROhomesinsideandoutsideitsfranchise,and is ableto
scrambleat the headendand TVRO homes to deachieveabouta 40oloshare of the TVRO marketoutside. but
code and receivescrambledprogramming.
adjacentto, his franchise.(lnsidethe franchise,the operator
3) Scrambled programming witl be sold to TVRO
presumablyachievesat least a 90% share.)
homes on the basis of a price structure that is
The cost-benefitmodel oenerates the followino results
comparableto the cost of programming to cable
(seeChart 6):
subscribers.
Operating
lncome
I
Capital
Expenditures
COMMENT:
Thereis at thepresent
timea totalunwillingness
to
evenconsiderthepossibility
thathomeTVROowners
willbeableto
$
$
buyscrambled
services
for lessthanthecablesubscriber
pavs.The
TVROargument
lhatthesatellite
vieweris makingthetotal'capital
21,000
7,000
1986
investment
forhissystem
isunappealing
tocablebecause
cablecannot
40,000
1,700
1987
allowthe TVROownerto purchase
HBO(forexample)
for evena
1988
65,000
3,300
pennylessthancablesubscribers
pay.Why?lfthereisanysignificant
'priceadvantage'to
'direct,'
1989
97,000
5,900
watching
HBO(etal)
rather
thanthrough
1990
143,000
9,900
cable,thismightcauseadditional
cableviewersto electto owna
TVRO.Evenif thecableoperator
endedupsellingtheTVRO-convert
Total
366.000
27.800
hisHBOservice,
ihecableoperator
wouldhavelostthe,capital
asset
The operating income comes from sale of scrambled value'of thecablesubscriber;
a notinsignificant
$1,000persubscriprogramming
books.Willcablemarketscrambled
to TVRO homes,insideand outsidethe franch- berlossfromthecableoperator's
for lessvia satellite
thanvia cable?Not likely.
iseat an averagerevenueperTVROhomeservedof $21.00, programs
and from providing cable service to salvaged subscriOtherkey assumptions
and estimatesused in the model
bers. The caoitalcosts include:
are as lollows:
A) $S,SOO
for 11 headenddescramblers(one for each
4) Estimatesof the revenuesand costs of distributino
basicchanneland one spare),
scrambledprogrammingj
to TVRO homes are based
B) additionalheadenddescramblersover time for upon cable industryaverages,unlessotherwiseindigrading,
catedbecauseof the specialcircumstancesof directC) convertersand drops to serve salvagedsubscribers.
to-homesignalreception.
The net presentvalue of cash flows over the five year
5) Of total TVRO owners, T0o/owill purchase scramperiodequalsapproximately$88,000,aftertaxes,interestand
bled programmingservices.
capitalcosts. The up-front capital investment in headend
6) Without scrambling, the average annual sales
descramblersis recovered in less than one year.
growth of TVROs within franchise areas is estiFrom a systemvaluationviewpoint,this hypotheticalsysmated at 65%. By 1990, TVROs would penetrate
tem would recover, with scrambling,approximately 550
5% of homes passed.
subscribers that would otherwisehave been lost to TVRO.
In termsof marketvalue in 1990,these salvagedsubscriCOMMENT:
WhileMalarkey-Taylor
avoids
overall
TVROmarke!
bers would add about $600,000to thevalue of the system.
placeprojections,
the"5%of allhomespassed"
suggests
a number.
Cableisexpected
to passsome63,000,000
UShouseholds
by 1990.
COMMENT:
Malarkey-Taylor
misleads
thereader
slightly
here,by Fivepercent
of63Mwouldbe3,150,000
TVROhomeswithincabled
present
electing
their'net
valueofcashflows'approach
to evaluatino areasby 1990.
Malarkey-Taylor
earliersuggested
thatforeachhome
theimpactof thehypothetical
15,000subscribei
svstem
whichthei in a cabled
area,there
cabled
suggest
will'salvage
550subscribers
period.
intheS-year
Those550 areas.Thatleads wouldbe1.6TVROhomesoutsideof'outside
to a totalof incableareas'(3,150,000)
and
subscribers
willpayto thehypothetical
per
cableoperator
9138,600
of cabledareas'(5,040,000),
or a Malarkey-Taylor
estimateof
yearforeachoffiveyearsor 9693,000.
Malarkey-Taylor'reduces'
ihis 8,154,000
'operating
US
homes
equipped
with
TVROby theendof 1990.With
real.numberto an adjusted
income,
$366,000
tallyby anadditional
6,404,000
TVROs
tobesoldduring1986,
87,88,89and
makingseveralassumptions
aboutwhatit will costto connect(or
90.Andif cableanticipates
capturing
59%of these8.'154Mhomes,
retain)
and'service'
those550'salvaged'
subscribers.
Thedifference thatleaves
3,343,140
forthe'traditional
dealers'to
sellandinstall.
lf
is $327,000
whichis a chunkof moneyin anyone's
book.
you likenumbers,
youcan projectthat3,500retaildealersspread
nationwide
wouldaverage
15.92lerminalr
APPENDIX
eachpermonthforthe60
months startingJanuary1986with cable,or if Malarkey-Taylor
KEY ASSUMPTIONS
projections
arecorrect,38.82terminalseach,permonth,withOUT
Our analysisis basedon a cost-benefitmodelof projected cable'sintervention
intotheTVRObusiness.
incrementalrevenues,expensesand capital costs to cable
operatorsand programmersfor the period 1986-j990.To
7) The estimatesof net operatingincome accruingto
comparethe situationswith and withoutscramblingwe have
operatorsand programmersfrom scramblingare
Year
\
I
!
5
'::::i::::.
COOP'S SATELLfTEDICESJ encenrcsD.2n.ss
basedon three averagerevenuefigures:
$26,00 per TVRO
household
in 1986
Mediumestimate
$ :2 1 . 0 0 p e r T V R O
householdin 1986
L o we s t i m a t e :
$16,000 per TVRO
household
in 1986
8) Decoders for each scrambled service will cost
cable operators $500.00.
9) A $100,000access fee for use of the central host
computer facility will be charged each programH i g he s t i m a t e :
I
I
mer, with 50o/o
of charges to basic programmers to
be paid by cable operators.
10) Programmers'annual administrativecosts for the
centralcomputerfacilityare estimatedat g1,000,000.
11) $200,000per programmer is the upperestimateof
expenditures
requiredfor scrambling at the uplink,
i.e. an in-housecontrolcomputerand a scramblino
sub-system.
12) An inflationfactor of 5'k per year is applied to all
revenueand expenseprojections.The discountrate
usedfor presentvaluecalculations
is 16%.
J
M/A-Com's
BUNKER
'TalksBack'/
(PartTwo)
f
I
!
PART Two
James F. Bunker is Seniorvice President
for M/A-Com,a
3/4billiondollar(1984salesreport)electronics
firmwithheadquarters in Burlington,Massachusetts.Bunker has been
'in
appointedas
charge'at M/A-Comto bring togetherthe
many,diverseelementsin the grandplanto scramble20 or
morecabletelevisionprogramservicesnow carriedon satellite.
ln CSD for July 1st, we beganan in-depthinterviewwith
Bunkerwhich runsconcurrentwith a videoplay of the same
interview
beginning
thisThursday(July18th)on BORESIGHT
(1). In our July 1st issue,Bunkerreportedthat becauseof
contractural
agreementswith HBO (and Showtime),his firm
'in
was requiredto make availablehomestyledescramblers
a n o r d e r l y f a s h i o n ' b e f o r e t h e l e a d i n ge d g e c a b l e p r o grammersbegantheirscramblingfull-time.Bunkerand M/ACom are walkinga delicatelysuspendedtightrope.On one
hand,they 'won'thecontractfrom HBO to createand supply
uplinkscramblersand downlinkdescramblers
to the (HBO)
cableaffiliates.
Thismakesthefirm'theguysin the blackhats'
to many in the TVRO industry.And anythingwhichthe firm
does in the scramblingarea is boundto be reflectedin the
salesof theirTVRO oroducts.
M/A-Com has walked both sides of the street previously.Yearsago,whenthefirstpolice/highway
patrolradar
equipmentwas beingcreatedand sold, it was this firm that
builtthe f irstcomponentpartsthat madepoliceradarpossible.
Shortly thereafter,it was the same firm that brought out
componentparts to create the 'radar detector' industrv.As
1/ BORESIGHTairsThursdaysat 9 pM easternon transponder20, SatcomF4.
DanaW. Atchley,Jr., Chairmanof the BoardEmerituswould
observe"We are In the componentbusinessand it is an
electronic
fact of lifethat each new breakthrough
in componentpartscreatesa parallelbreakthroughfor marketingpeople.Onlyin militarycomponentpartsis therea 'lock'ontechnologyin favorof a singletype of customer."
lF lt Does Not Fly?
TVROindustryreactionto the scramblingplan advanced
by the cable programmershas been largelynegative.As
originally
conceived,
therewouldbe a relatively
lengthy'phasing in period'duringwhichfirst one and then anothercable
satelliteprogrammingchannelwould scramble.HBO and
Cinemaxwould be first,followedperhapsearly in 1986 by
Showtimeandthenat someunspecified
pointlater,additional
serviceswouldscramble.Then latein May the cableindustry
beganto toss arounda plan whichwouldcreatea 'National
Authorization
Center'withas many as 20 cableserviceprogrammersall scramblingwithin a relativelynarrow 'timeframe'(seeCSD/2,June1Sth).We askedBunkerto comment
whatmighthappenif the initialscramblingby HBOand others
met severesalesresistancefrom the TVRO world.'Suppose'
'it
we suggested
simplydoesnotfly;peopledo notstandin line
to takethe scrambledservices.What happensthen?'.
"lf HBO
was the only programmerto offer a scrambled
service (withaffiliateCinemax),M/A-Comwouldhaveto wind
downour productionramp-upvery quickly.However,we Delieveand are committedto the planthat many of the programmers will scrambleand we are advancingbased upon that
assumotion."
HBO has their uplink scramblingsystem essentiallyin
place,andthe downlinkdescramblers
havebeendeliveredto
allauthorized
CATVaffiliates
of HBOand Cinemax.In theorv,
PAGE 18/CSD-2/7-85
HBOcouldmovefrompart-time
scrambling
to full-timescramblingat any time.However,HBO has stated,repeatedly,
that
they will not throwthe switchesto full{ime scramblinguntil
thereare'adequatehomeTVROdescramblers'
in thefield(or
salespipeline),and concurrentwith that,HBO has begunto
markettheir serviceto the home TVRO viewers.All of this
remainsvery nebulousand we wonderedif Bunkerand M/ACom couldgive us any insighton when HBO might,in fact,
throwthe switchto full-timescrambling.
"We have released
the initial quantity of parts and
circuitboards to production(at the M/A-ComPuerto Rico
facility).We expectto have small quantitiesof home style
descramblers
readyfor deliveryto (TVROand other)distributors in latesummeror earlyfall.Now,when I thinkin termsof
quantitydeliveryof descramblers,
I believe we are in late
1985 beforeHBO could start marketingtheirserviceacross
the country.So the date-certain
time is towardsthe end of
1985."
Giventhe not-date-certain
timingof the exercise,and the
probabilitythat HBO (plus Cinemax),standingalone in a
scrambledformat,willnotattracta sizeableaudienceof TVRO
users,at what point does a traditionaldistributorof TVRO
productsbeginto becomeseriouslyinterestedin handlingthe
M/A-Comdescrambler?lt is the oft-observed'chickenand
M/A-Com'sBUNKERduring CSDiBORESIGHT
interviewin Burlington.
SATELLITE
DICEST
egg' scenario;M/A-Comis reluctantto starta big production
on home style descramblersuntil they feel there will be a
on their
marketfor them.HBO is not readyto startscrambling,
own, full-timeuntil there are descramblersavailablein the
In fact,theywouldrathersit it out and wait until
marketplace.
they are loinedby anotherdozenor so scrambledchannels
marketingprojections
suggest
sinceeventheirmostoptimistic
'thin'marketfor their
serviceif nobody
thattheywillfinda very
'would
'So why,' we asked Bunker,
any
else is scrambled.
distributorof TVRO productsbe placingan orderfor TVRO
at this point in time?'
descramblers
"To those dealersand distributorswho ordernow,they
will obviouslybe first in the marketplaceto understandthe
product,to be exposedto the operational
characteristics,
the
and so on. But I really don't expect
servicingrequirements
largeorders for the descramblerproduct belorelatesummer; not untilwe have more programmersannouncingtheir
plansto scramble.And that is why our own productionramp'85
because
up for the productis reallycenteredaroundlate
we thinkthat is when it will be realisticto startheavyproducmakinga commitment
tion.This is a functionof programmers
of the (NationalAuthorizato scramblingand the availability
tion Center)controlnetworkto run the lull networkas well."
The suggestedretailpricefor the VC2000E(homestyle'
stand-alone)
is $395.M/A-Com,at one pointlast
descrambler
'widely
advertisethat price' to
spring,stated that it would
insure that the consumerswere fully aware of the price.
However,the stand-alone
unitwill cost the distributor $325
each (pluspossibleshippingchargesf rom PuertoRico).lf the
is goingto movethe productthrougha dealer,and
distributor
thento the consumer,it becomesa very low mark-uppieceof
and another10%for
equipment;barely10%lor the distributor
the dealer.We askedBunkerhow this thin margincould be
justifiedby thosewho are beingaskedto committo significant
quantitiesof the product'ongood faith.'
"l think for all of us, the dealer,the distributorand the
originalequipmentsupplier,the profitsare veryslimor narrow;
perhaps10% eachfor the equipmentsupplier,the distributor
ol the
and the dealer.However,we believethat introduction
new marscrambledCBD servicewillcreatea (considerable)
ket in the upgradingof existingterminalsystems.We expect
thereto be a significantmarketfor upgradedreceivers(i.e.
to addthedescramwhenan existingTVROconsumerwishes
bler, M/A-Comforecaststhat a large percentageof those
peoplewill also upgradeto a newer receiverwith recently
offeredfeaturessuchas stereoand full remotecontrol).Additionally,whentheCBDsystemistinallyin place,it willtakethat
and leadus
of scramblingout of the marketplace
uncertainty
to the next steo which will be the receiverwith the built-in
descrambler;our IRD system.We think this will all help to
make a much strongerTVRO industrywith increasedretail
salesfor everydealer."
The'chickenand egg'problemkeepscomingbackas the
'timingproblem.'
coreof the
Not even HBO believesthatthey
can scrambleon their own and have a viablehome TVRO
business.
We feltthatM/A-Comhad studiedthisoroblemand
thatthey probablyhad somethoughtson wherea 'threshold'
mightbe reachedwhichwouldtriggerseriousinterestin home
descramblers
by theTVROmarketplace.
Bunkerofferedwhat
point'
he clearlylabeledas an opinionon wherethat'threshold
of scramblingmightbe
"There certainly has to be
some amount of programmingavailable,only througha descrambler,
to attract
theattention
of the homeTVROviewer.I thinkthatif vou have
1e/c
one or two of the super stationsscrambled,a Disney,an
ESPN,alongwith the premiumprogrammers
includingHBO
and Showtime(plusCinemaxand The MovieChannel),that
will trigger all of the distribution
channelsto moveforward.I
wouldexoectat that time we will see a floodof orders.In the
meantime,we are pushingahead with the manufactureof
c a b l e ( V C 2 C )d e s c r a m b l e r sa n d t h e u p l i n k ( s c r a m b l i n g )
equipmentfor that eventuality.The manufactureof cable
headendunitshas to be movingaheadon a parallelcourse
withthedevelopment
andstart-upproduction
of theconsumer
units;we haveto anticipatethe announcement
by moreservicesthattheywillscrambleand be preparedto supportthem
with the timely delivery of cable headenddescramblers.
However,until all of this does come together, (we feel)
therewon'tbe a largeandviablebusinessof sellingscrambled
programming
to TVRO owners."
lf this is an accurateassessmentof 'when'therewill be
widespreadscrambling,and 'how' it will triggerconsumer
purchasesof descramblers,
why thenwouldHBO be practicingever-increasing
scrambling
of theirfourfeeds?How does
Bunkerview what HBO has done to date?
"l believe that what HBO and M/A-Com have done,
goodor baddependinguponwhatyou reador hear,is thatwe
havetakenthefirststepin gettingthe scrambled,
subscription
servicein effectin America.Theotherswillfollowbutit is going
to take more programmers
with the rightprices
announcing,
and the rightequipment,beforethis all comestogether."
HOW Scrambling ts lmpacting TVRO
Some have pointeda fingerof blameat the uncertainty
surrounding
scramblingas a majorcausein the ,OEM/distri
butor'shake-out
that has beenwith us thisyear.A numberof
productlines(lntersat,Earth Terminals,for example)have
the marketplace.
Otherproductlinesare strugglingunder
l9f.t
'Chapter 'l
1 re-organization'(Automation t66nn-iques,
Locom, for example)to stay afloat.Does Bunkeror M/A-Com
attributeany of the businessproblemsfaced by OEMs and
distributors
to the scramblingscenarionow infectingthe industry?
"As
a businessfellow, I am verysorryto see thisshake_
out.lt hasbeenwidelywrittenabout,by CSDfor example,but
the truthhere is much more basicthah a fear of scrahblino.
There have been too many vendors in the marketplac;.
Whenyou haveas manyvendorsas we havehad,servinoa
marketthis small,there must be instability.
As priceshaive
gonedown and featureshave gone up, there has obviously
prolitsqueeze.And it is not onlythe smallcompanies
!ee1 a
that have felt this; M/A-Com,which is relativelyspeat<ing
a
largercompany,has had to stop the maufactureof low no'ise
amplifiers
and blockdownconverters
for the industrvbecause
the pricingof theseproductshas droppedso dramaticallyfrom
the overseassuppliers."
Stoppingproductionis a businessdecision.But it can be
an expensivebusinessdecision.
"There
sure are losses here. We are in businessto make
money.But the pricinggot so low that it was no longerviable
for us to continuein the business.I have seen recentlvthat
othersuppliers,buildingthe sametype of equipmentOomestically,.have reporteda loss in dollars from ongoing opera_
tions..I can'tread insidecorporatepricingstructuresbut it is
not obviousto me that any Americanmanufacturersare enjoyingsignificantprofitmarginsfor LNAs and block down_
convertersas stifferand stifferpricingcompetitionnas come
from overseas."
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DICEST
lf the LNAsand blockdownconverters
are now difficultto
is it not
buildandsell,profitably,by a domesticmanufacturer,
possiblethatoffshoreproducersare alsofacingexceptionally
low profitstructuresas well with the same units?
"My opinion, as an ex-microwave
engineer,is that if they
are enjoyingany profits at all, the profitson LNAsand block
downconvertersare very low; regardless of where they are
being built. There is a fundamentalbill of materialswhich
goes into any product.This bill of materialsis no different
olfshorethan it is onshore.
"Whatwe have
seenhereis the entryintothe marketplace
consumertype manulacturers
offshore.
by large,established
They were geared up to participatein the early Ku band
markets,especiallyin Japan.Withthe failureof the Japanese
three channelKu band satellitethis past spring,these conhave been forcedto shifttheirproducsumermanufacturers
They
tionlinesf romKu bandequipmentto C bandequipment.
have done this by bringingin very low pricingand reduced
profitmarginsin anticipation
of a significantand much bigger
marketplacebuildinghere."
We hear the comment, perhaps the fear, that some
'marketing
strategies'or businessplansmay actuallyinclude
a periodof salestime whereeach unit shippedis shippedor
'buy' portion
a
or
sold 'at a loss'; that a firm will attemptto
that
shareof a marketby bringingin low pricesin anticipation
theircost oer unitwill catchup with
as the volumeincreases,
the earlysellingpriceand thateventuallythey will be profitable. Does M/A-Comfeel that this marketingtechniqueis
beingemployedin the TVRO business?
"l am sure there are companies out there following
that strategy. lf you followthe BostonConsultingGroup's
theoryof marketshare,startingoff at low pricingand gaining
marketsharethroughthe learningcurve of start-upproduction,that is a strategyor theorythat is prevalentin consumer
And I thinkthis processwillaccelerate
electronics.
the shake'85
outduringthe balanceof
andthrough1986.M/A-Comtries
not to follow that strategybecausewhen you do, it can be
very costly.We are a public corporation,we have shareholderswe mustanswerto. On the otherhand,thereareother
corporations,some privatelyowned, which will lollow that
strategy.I wouldhaveto agreethatwe thinkthere are some
now in the marketplacewho are operatingin that mode."
'back-stop'
itselfif it elected
Onewaythata companymight
policyis
to followthe low-pricing
and buying-of-market-share
'subsidy'for
its operations.For examto acquiresomesortof
ple,a firm with lucrativemilitarycontractsmightbe in a posi'subsidize'entry
intoTVRO at a low pricinglevelwith
tion to
the profitsfromits militarysales.In anotherexample,someof
the offshorefirms operatein countrieswheretherearedirect
subsidies'availableto allowa f irmto
and indirect'government
actuallylosemoneyduringa start-upphasein hopesthatthe
low pricingwillcapturefor the firm a significantmarketshare,
the cost per unitwill fall
and as the firm expandsproduction,
(basedupon experienceand volume)and that eventually
therewill be a orofitable
ooerationat hand.Of courseas all'of
this happens,those firms withoutsuch a subsidyare faced
with stifferand stiffercompetitionand they may be forcedto
becausethey are unableto comdropout of the marketplace
'subsidy'
petewiththe subsidized
firms.Bunkeron thatsortof
in the TVRO marketolace.
"l
am almost'too American'todeal with that subjectlIn
thosecountrieswherethishappens,thisis simplytheirway of
doingbusiness.I thinkwe have experiencedthis in the low
noiseamplifier(andBDC) productline.I thinkit is realisticto
COOP'S SATELLfTE DICEST
expect receiverpricingwill (also) decreasein the coming
monthsandyears.I personally
believethe C-bandelectronics
(LNA or LNB, receivers)will be availablewith featuresand
pricingby 1986as if it were Ku band.The only differential
I
foreseebetweenthe C and Ku bandservicepackageswillbe
the antennas(C bandbeinglarger)and perhapsthe addition
of the antennaactuatorsand controllers
for the C bandoackages (whichare not presentlyenvisionedfor the single-bird,
dedicatedKu band packages).And in fact some would
argue that we are already there. The Galaxy1 systempackages,for dedicatedreceptionof just the Galaxy1 (24)transponderseven today approachesthe retailpricingoriginally
estimatedfor Ku bandsinglebirdreception.
Whichis another
wayof sayingthat'DBS'is nota f requencysensitiveservice.lt
couldjust as easilybe a C bandserviceas a Ku bandservice.
We havefelt that way for some time now."
Finally,the questionof which firms will 'control'the distributionof descramblers
when they finallydo becomeavailable.M/A-Comadmitsthat therewill be a'slow and orderly
rampup' of production
for the stand-alone
units.With limited
supply,thereis someconcernthata singlesuppliermightgrab
all of the unitsinitially,therebydominatingthe marketto the
disadvantage
of other suppliersand distributors.
Bunkeron
this possibility.
"We will allocatethe initial supply of descramblers
as
evenlyand fairlyas possible.The last thingwe want or the
industrywantsor needsis for one or a coupleof suppliersto
controlthe distribution
of the descramblers.
"We don't want
a distributor, or cable programmeror
manufacturer
to buy up the productiontherebyinhibitingthe
widedistribution
of the units.We willdo thesamethingwiththe
modules,the IRD units.By startingour acceptance
of orders
evenly,to everyoneat thesametime,we willallocateunitsand
thenbuildthe factoryrampup as a functionof the backlogof
ordersthat we receive.What we must be very careful of is
thatsomebodydoes not buy a positionin the linewitha large
eAGE
21tcsD-2t7-ss
order which is then cancelledseveralmonths later as the
deliverydatecomescloser.One way we can controlthis is to
requirean up front downpayment of earnestor 'honesty'
moneyto proveto us thatthe firm placingthe ordersincerely
wantsto takethe unitswhichwillbe scheduledfor them.That
willbe onewayto tryto keepothersfromhoggingor absorbing
our manufacturingcapacity in the start-upphase of this
program."
BOTTOMLine?
It is clearthat M/A-Com,at least.has the resolveand the
resourcesto fulfilltheirpart of the mastercontractwith HBO
and Showtime;and, that they are preparingfor what they
believewillbe a majorswingto scrambledprogramdeliveryby
as manyas 20 of the presentsatellitedeliveredprogrammers.
However,the satelliteprogrammersmust act, must set
specifictargetdates to be scrambledand must begin the
processof installingtheirown uplinkscramblersand getting
t h e i r c a b l e a f f i l i a t e se q u i p p e dw i t h V C 2 C ( c a b l e f o r m )
descramblers
before the TVRO industry accepts that any or
allof thisis 'reallyhappening.'
Untilthatday,untila 'threshold
of reality'is apparentto the TVRO industry,it is very unlikely
thattherewillbe a significant
marketfor home-style
descramblers no matterwho attemotsto marketthem.
It also appearsto us that while M/A-Comwould like and
preferto seeTVROreceiverOEMsmakinghardplansnow to
shiftto the'lRD'receiverdesign(seeCSDfor May01, May 15
andJune01) ratherthanexpectingthe marketplace
to adapt
to the standalone(VC2000E)descramblerunit,this step is
even further away. We thereforeenvisiona periodof a year
or eventwo,afterit becomesclearthata scrambling
threshold
is upon us, beforewe beginto see significantactivityin the
redesignof TVROreceivers,aroundthe M/A-ComIRD package.Thissimplymeansthatfor 1985,1986and perhapswell
into 1987,the likelyform of a descrambler
will be the stand
alone VC2000Eunit.
TULSASHOW
REPORT
TIME To Speak Out?
The recentlyconcludedSTTI/SPACE(or SpACE/STTIif
you wishto apportion'equalblame')Tulsatradeshowdemonstratedthattoo muchof a goodthingcan be a bad thing.Too
manyshows,too closetogether,ultimatelywil[(anddo) work
to the detrimentof a young,strugglingindustry.In a nutshell,
too manyshows,too closetogether,resultin too few people
attending. And a show risesor falls on its final attendance
figures.
Various'official'statements
from SPACEand STTI fixed
the numberof attendeesat around4,500.To that,we aretold,
one shouldadd an 'additional
3,000for exhibitor.booth.oress
andotherpersonnel.'Those
numbersdo notsound bad,even
whencomparedto the 15,000'officialcount'for the springLas
Vegasgathering.
However,othermuchsmallernumberssuggestthe degreeof difficultyattachedto an accurate'count'of
attendees.For example,the openingsessionfeaturingthe
(Taylor,Brown,Hewittet al) drew fewer than
heavyweights
PAGE 221CSD-217-85
SATELLITE
DICEST
'banquet,'
300.The show-annual
a bar-b-quein deferenceto
Tulsa
location,
the
had fewerthan250 'tickets'soldjust hours
aheadof the event.And therewere neversignilicant'lines'in
f rontof the registration
booths;not evenon openingmorning.
Writingin the'deScrambler,'a monthlynewsletter
issued
(NSC)for
by the peopleat NationalSatelliteCommunications
theirdealeraffiliates,Baringersuggested:
"ls this a business or is it a 'show' (business)?
Are we
barkersat a carnival,or businessmenand women? lf we
are to be constantly involved in the-business-of-shows,
when do we find time to run our satellite business?".
Yet in spiteof lightattendance(approximately
200 exhibit
boothspaceswerealsoempty;theshowsponsorshad hoped
for 700)the show did provideinteresting
businessopportunitiesfor thosewho did attend.The choiceof Tulsawas not as
abstractas it may have seemed; a significantnumber of
establisheddealersattendedtheir first show here; several
we talked with have been sellingTVRO systemsfor three
yearsand longerbut have neverpreviouslyattendeda trade
show.They may have beenthe winnerssincethe majorityof
the boothsexperiencedlight enoughtrafficthat these firsttimerswere ableto get all of the time they neededor wanted
withthe boothpersonnel.
And withseveralhundredfirst-timeestablisheddealers on hand,manv of the exhibitorsreoort
AND A DEALERRESPONSE:
How did the Tulsa show impressthose who have been in the
businessfor severalyears,but who have neverattendedan industry
trade show previously?This letter suggestsat least one dealels
impressions.
"With great
anticipationI attendedmy first SPACE/STTIshow on
SaturdayJune 22nd. Enteringthe main air terminalat Tulsa,I expectedsomeoneto supplyinformation
aboutthisbigshow.Two hand
penciledposterboardsgreetedme. I askedthe peopleworkingat the
rentalcar serviceaboutshuttlesto the 'SPACEShow.'They had not
heardof SPACEbutthefaithfulcabbie
knewwhereto go. Entering
the
exhibithallafterpaying$24for an additional
exhibitor's
badge,I could
not help but noticethe vacantbooth space;especiallythose with
unpackedcartons,at the far end of the hall.
"l
did enjoy the show and was quite surprisedat how many
exhibitors
were apparentlyanticipating
a big turn-out.I say this becauseSundaymanywerepassingout basketballs,
hats,literatureand
packetsto other vendors so they wouldnot haveto take them home
themselves.
What a shame all of those promotionalitemsdid not
reachtheirintendedrecipients;
dealers.
"A
commoncommentheardon thefloorwastheextremeentrance
fee to dealers.There was a feelingthat the dealerswere being
penalizedwith such a cost. Many of the exhibitorsI talkedto had
commentsaboutthe show,suchas'Whythe highentrancechargeto
"Where
dealers?",
is the big turn out?"or "Why do they haveseminars duringthe day when we are here in our boothsto see the
dealers???".
In closing,
theJuneissueof Coop's SatelliteDigestreviewed
the
subjectof thecableTV industryandtheirangertowardsTVRO.When
lwas in Tulsa,lwatcheda localtelevision
newscastwherethevstated
thatour industry's
salesweredown and they cameto the on-the-air
conclusions
thatwithscrambling
coming,thatwouldeliminateuseof
TVROdishes.We in our industryneedall of the positivesupportwe
can muster.Can you imaginethe impactof that news report on a
first-time
show goerwho first heard the negativecommentson the
exhibit hall floor and then heard the local TV newscastsay our
industry
wasfinished???
| hopewe canalllearnfromthelailingsof the
Tulsashowandgo on to gainmorepublicrespectandpublicsupport."
Ronald B. Ramon
STAM ManufacturingCo.
B o x3 1 9
Watseka.lllinois60970
JANEIL'SBOB LULYexplainsthe terrestrialinterference
trappingcircuitandthequartzlockingsystemfortheJaneilBCR2000
receiver.
w r i t i n go r d e r t o t a l s a p p r o a c h i n gt h e $ ' lM m a r k . N o t t o o
shabby.
AutomationTechniques,filingfor re-organization
under
c h a p t e1
r 1 i n t h es p r i n gw
, a s b a c k ' a t h ef r o n td o o r ' w i t ha h o t
air balloonannouncingthat they were 'strongerthan ever.'
Insidethey provedit by liningup varioustelevisionpersonalities and beautycontestwinnersto adorntheirboothwith the
allureof the bigtime.AT may well 'arisefromthe ashes'andif
so, Tulsawas theircomingout party.
The numberof new,imported,receiverscontinuedto rise
'copying
and if
receivers'was not the most popularway to
'enter
our business'in a hurry,copyingantennaswas; one
wag reportedhe counted28 different'clones'
of the popular
Raydxantennaline in the antennalot.
28 was a numberthat repeateditselfat leastone other
time;tradejournalistswith 'timeon their hands'countedthe
numberof separatepublications
on displayfor handoutat the
show.Yup, 28.
SPACEreactionto recentcableindustrymaneuversin the
'war'
scrambling
highlighted
the firstfew days of the session.
M/A-Comhad issuedan invitationto the SPACE 'Executive
Committee'to
tourtheirNorthCarolinafacilityandto witnessa
demonstration
of the M/A-ComVideociphersystem.SPACE
CounselBrowncautionedthe boardmembersagainstaccept-
COOP'S SATELLfTE DICEST
ingthe invitation,
concernedthatthe cableindustrymightread
the visit as a sign of 'weakness'on the part of the TVRO
industry.An alternateplan,to sendmembersof the industry's
trade press as a substitutefor the full ExecutiveCommittee,
receivedsome attentiorr.
Brownreportedfirst to the Boardof Directorsand then to
the membershipthe status of the cable attack. CATA, the
CommunityAntennaTelevisionAssociation,
had concluded
theirannualconventionand tradeshowonlydays priorto the
Tulsa gatheringand there Brown had spoken on a panel
dealingwithcable'sentryintothe TVRO business.His report
foundCATA cableoperatorsbasicallyunfriendly and basically uninterested in any type of 'accommodation'with
TVRO.
On the exhibithall floor,we bumoedinto four Oklahoma
cable operators who had come to the show as potential
TVROdealers.One,from westernOklahoma,had lost44 of
his subscribers
this year (out of a total cablehome countof
525)to TVROownership.
Hewasyourbasicangrypersonand
not quitecertainthat becominga TVRO dealerwas goingto
solvehis problem.Another,fromeasternOklahoma,had lost
fewerthanfivesubscribers
to TVRO(outof a cableuniverseof
'extend
4early2,500)andwas lookinguponTVROas a way to
eAGE
2stcsD-2t7-ss
awholrlt:.rv\Vol{r1..
"
i*
l[.
n*
s s }
CLEANER
DISHES/
one of the morenovelproductson display
was'DishMaid,'adishcleaningsystemthatperhapsoriginated
withproductsoriginally
soldto themarineindustry.
A longpole,
witha brushon theend,is connectedto a gardenhoseandfrom
'clean'
thegroundthesystemownercan
hisor herdishwhenever
it getsdirty.Cleandishesmakecleaner
pictures
...
hiscablelines'into ruralareaswherethe population
was too
thinto supporttraditional
cableservice.The bottomlinewas
'examples'to
thatyou couldfind
supportalmostany'position'
you wishedto take in the cableversusTVRO war.
TheSPACEDealerBoardtookone hardnosedviewwhich
is guaranteednot to delightthe 28 publications
in the field;
they ended up urgingoriginalequipmentmanufacturers
to
shavetheirtrade publicationadvertisingbudgetsin favorof
puttingthe same dollars into consumerpublicationsand
'TVRO
awarenessadvertising.'
The suggestioncontinued
prodthatTVROdistributorswerethe 'naturaladvertisers'of
uctfor the trade publicationswhilethe OEMs,the 'motion'
went,were moresuitedto the consumertrade.Followinoon
the heelsof the highlyhelpful ABC'2Ol2O'reportby H-ugh
Downs(seeCSD for July 1, page38), the dealergroupwas
quickto askfor OEMhelpin gettingmoresuchpieces'placed'
in the'nationalmedia.
BADGECOLLECTOR/when a show gets 'slowenough,'people
look for ways to liven things up. MTI's Guy Davisstarted a 'badge
collection' and wound up with 8 different badges,all intendedfor
different show-going categories, in Tulsa.
UNFORTUNATE
CHOICEi'CableBuster'antenna attracted plenty
of the wrong kind of attention. Gabte 'spies'on hand were busy
snappingphotographswhich will undoubtedlyappear in cable
trade publicationsin coming months.
DICEST
SATELLITE
PAGE 24ICSO-217-85
(The realityis, ol course,that individualOEM effortsto
pressto attractconsumersintoTVRO
advertisein consumer
'one-shot'propositionsince the dollars
storesis at best a
generrequiredarefargreaterthanevenour largerOEMscan'TVRO
to collectivelyengage in
ate. A prograrn-designed
supportedby all of the OEMs, has
awarenesstadvertising,
'lost'for now throughthe cracksof an industrysales
been
period.)
re-adjustment
We spokewith as many dealersas we couldconcernlng
the impacton their businessesof lhe'2Ol2O'programplece
airedlatein May.A Californiadealersaid he had neversold
before;but addedthat his sales
foursystemsin a singleday
'followup' piecedown on a ma;or
spurtwas tied directlyto a
Los Angelestelevisionstation,after the 20120piece was
telecastlThe 2Ql2Opiecetriggeredthe localstationintodoing
'TVRO story' and he happenedto be the dealer
their own
featuredin the report.Wichita,KansasdealerJeff Manion,
sueda yearago by his localcablesystem,had no increasein
trafficafter20120.Wewonderedwhy.
"The focal (ABC)affiliate did not carry 2Ol2Othat evening; instead, they chose to telecast a regional Plofgs-sioial baseballgahe." In effect,the stationshutthe TVRO
messageout of the Wichitamarket.Manionwas suspicious
that this was no accident.
E q u i p m e n t r e n d s .J a n e i l ' s f u l l e q u i p m e n tl i n e , f r o m
hadbotha newlookanda
antennaandactuatorto electronics,
The BCR2000,apparentnewlookof improvedperformance.
'Tl'
with a built-in
ly the firstreceiverto enterthe marketplace
The Tl system
system,was especiallyintriguing.
suppression
is a pairo{ trais, at 60 and 80 MHz,wiredintoa switchso the
of the
usei can swiich in and switchout. A demonstration
*!
worked
antennalot meshdishassembler
AUDIENCE/
CAPTIVE
insideof this screenantenna.
receiver'soerformancewith moderateamountsof Tl was
and we heardseveralotherOEMstalking
indeedimoressive
aboutaddinga similarcircuitto theirown receivers.Probably
by Nashville.
reA new John Ramsey (RamseyElectronics/Sat-Tec)
'on
ceiver,promisedfor nearlyone yearnow,finallyappeared
stage'in Tulsa.This receiver,likethe newerJaneilunits,uses
'region'for its block lF lendingitself to
the 400/900 MHz
hook-upsusing commonlyavailableUHF
multiple-receiver
t e l e v i s i o nd i s t r i b u t i oenq u i p m e n tT. h e m a r k e t i n g ' d i r e c t i o n '
"(We
are) Strongerthan
Techniquesgreeteddealersto the Tulsa show with a pungent message;
ALIVEAND WELL/ Automation
Ever."
SATELLfTEDICEST'oc' 2stcsD-zt7-ss
STS GAMBLE/ unorthodox cassegrain design antenna system
offered by STSattracted interest but most dealerswere skeptical
of the installation challenges and performance.
BEAUMONT
takenforthenew Ramseyreceiveris of specialinterest.A total
of 3,000 are availableper month.These have been apportionedto 30 distributors,
each of whichwill havean even 100
to sell.By spreadingthe availableinventoryaround,Ramsey
hopesthattheywillbe ableto headoff 'pricecutting'on the unit
and this would be a benefitto dealerswho find themselves
biddingagainsttheirown receiverbrandswith a dealer'down
the street'willingto drop another$10 or $20.
USS/Masproalso had their new top-of-the-line
SR-3 on
hand.This receiverhas on screengraphics,set (to memory)
and forgetvideoand audiotuningand skew,individualtransponderlockout,full UHF remotecontroland sleekJaoanese
styling.Deliveryon the new unitswillbeginat a lowlevelat the
e n d o f t h i s m o n t ha n d b u i l dt o v o l u m eb y N a s h v i l l e .
D E A L E RI n p u t
One of the more interestingnew conceptsattemptedat
Tulsacame out of the SPACEdealerboard.Afterthe highly
'Dealer
successful
ScramblingRally'in Las Vegas,the dealer
boarddecidedto passoverscrambling
as a majorissueandto
headdirectlyintothe never-neverlandof 'Dealer Relations
w i t h O E M s a n d D i s t r i b u t o r s . ' A f i r s t - e v e n i n gm e e t i n g
alloweddealerson stageto posedifficultquestionsto OEMs
and distributors
who wereseatedin the firstthreerowso{ the
meetingroom.Dealersin the audiencewere then allowedto
ask additionalquestionsfrom the floor.The questionsasked
weretough;'Whydo somedistributors
continueto sell directly to consumers,''Why must we (the dealer) pay return
freight chargeson a unitthat is DOA (deadon arrival',)'Why
can'twe get more in-storepromotional
literature'and on and
on.A widevarietyof OEMsanddistributors
willinglyparticipated
a n d t h e d e a l e r b o a r d p l a n s a n o t h e r ,e x p a n d e ds e s s i o n
in Nashville.
So if youarea dealer,startmakingyourown listof
HOUSTON
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r l /,
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PAGE 26tCSD-2t7-85
DICEST
COOP'S SATELLITE
questionsnow.
NEW PRODUCTSicontinues trom page 6
Washington98009) has releasedadditionalspecificationsfor their
Mark2 dual band(C and Ku) compatibleTVRO receiversystem.The
packagewill accept a BDC input between 950 and 1750 MHz to
accomodatenot onlythe NorthAmerican500 MHzwideTVRO bands
at 3.7-4.2 and 11.7 to 12.2 GHz, but to also handlethe European
bands which stretchout over a 750 MHz wide spectrum.Separate
feedsand LNBs coveringthe two bands,or two separateantennas,
eachequippedwith its own LNB can be usedto feed the Mark2 wide
lF receiversystem.
receiver.The receiverhas microprocessorcontrolledsynthesized
tuningto eliminatefine tuning,automaticpolaritychangeover,consecutivechannelscanning,and continuousaudio tuning.Infrared
remotecontrolis optional.The unit is doubleconversionand features
no-pot-setting
for the installingdealer set-up.
SatStarHas'Moore' Behind lt
MARK 2 is C and Ku Band Ready
Microdyne Corporation (P.O. Box 7213, Ocala,Florida32672:
904/687-4633)
has a data sheetavailableexplainingwhy theirmodel
1100HDRvideoreceiveris the most'flexible'satellite
videoreceiver
presentlyavailablein the marketplace.The BDC designedproduct
providesfront panel selectionof 48 differentpre-set lransponder
frequencyconfigurations
plus it allowsthe userto set in an additional
48 channelsfor a totalof 96 separatepre-settransponderallocations.
The receiveris availablewith optionalhalf and full transponderfilters
andthe lF rangeis 950 to 1450MHz for BDC unitsreceivingsignalsin
any C or K band frequencyassignment.
NORSATInternational(302-1288678th Avenue,Suney, British
Columbia,Canada V3W 8E7; 800/663-8733in USA and 604/5913334in Canada)has announceda full lineof highlystablelow noise
LNBunitsfor usewithreceivers
utilizing
the950to 1450MHzlF band.
The fullyisolatedunit has 58 dB of averagegain (at 20 degreesC), a
gain variationof +3 dB, local oscillatorstabilitVof +2 MHz (LO
frequencyof 5150 MHz),and an inputVSWRof i .3 to 1 maximum.
The units are availablewith LNB noise figures of B0 through 95
degreesK and carry a two-yearwarranty.
Norsat has also introducedtheir JR-200 receiver which was
awardedan awardfor innovativedesignat the recentCES/Consumer
ElectronicsShow in Chicago.The infraredremotecontrolled,direct
accessreceiverhas automaticquartzsynthesizedtuning,automatic
A-Bswitchingfor returnto off-airor cableTV service,automatictuning
searchfor audio driven by a microprocessor,
audio plus video and
satellitememorysystemand it is'decodercompatible'forthe scrambled servicescoming.
NORSIT Wins Styling Award with JR-200
Satstar Satellite Products (A Unitof MillimeterWave Technology, 1395 MariettaParkway,Building700, Marietta,Georgia30067;
4041425-9385)
has announcedtheir new 'Elan' svnthesizedTVRO
SatStar/Millimeter
havealsoannouncedthe engagementof Jerry
K. Mooreas Vice Presidentof Marketing.Moorecomesto SatStarvia
GouldDexcelandAmplicawherehe was instrumental
in bringingnew
TVRO productsto marketfor both firms.
ANTENNARelated Developments
Aztech Antenna Corporation (Route 150, Box 21, West Sand
Lake,New York 12196;800/892-8999or 5181674-2864
within New
York) has a new five foot, spun aluminumGalaxy-1dish with Az-El
(PVC)mountwhich they say sets up in less than five minutestime.
The fish has an f/D of .375 and a claimed gain of 34 dB. Optional
accessoriesincludesteel mount and a polar mount.
Beach Craft Electronics (701 CollierStreet,Hannibal,Missouri
63401;3141221-4146)
has a new oilite bearing movement mount
designedfor easy declinationsettingsand installation.The mount is
availablefor a wide varietyof antennasand is now standardon all
BeachCraft 6. B. 9 and 10 foot fiberolassantennas.
Beach Craft Makes lt Easy
Birdview Satellite Communications, Inc. (8500 W. 11oth
Street,OverlandPark,Kansas66210;913/451-2636)
ceasedshiopingtheirSpoon'ilantennabecauseof a problemrelatingto the diih
retainingits finish during shipping.Dish surfaces were arrivingat
dealerswith imperfectfinishesapparentlycausedduringthe shipping
process.Birdviewexpectedthe halt in shippingto be temporaryand
shipmentof the Spoonwouldbeginagainwhenthe f inishproblemwas
corrected.Birdviewbegan shippingthe antenna to dealers late in
May.
ERL/ElectromechanicalResearchLaboratories,Inc. (624VincennesSt., New Albany, Indiana47150; 8121948-8494)
has begun
shippingtheirnew (7.3foot)CNC/7.3blackwiremeshTVRO antenna.
The companyhas previouslyannounceda 10 foot anlenna.The dish
27tcsD-ztz.Bs
SATELLfTE DICEST eAGE
has an f/D of .375,shipsvia UPS, and carriesa five year warranty.
Anothernew productofferedis the'Quick Stand',an antennaassembly and site surveystanddesignedto travelwith the dealerfor simplified dish assemblyor testing for Tl. The Quick Stand mount is intendedfor dish assembly(an extenderkit gives you five feet ground
clearance),
willhandleantennasrequiringpolemountsto 4.5 inches
in diameter,
weighs39 poundsandfoldsup to transportin thetrunkof
a car.
GillaspieCommunications,Inc./Geotech(355 SinclairFrontage Road,Milpitas,California95035;408/943-8800)has announced
a 4.5 foot offset fed C band TVRO antenna which they claim out
performs6 foot diameterantennaswith 'centerfeeds',The portable
antennais designedfor RV or other transportableuse and has an
elevationover azimuthmount.
LUXORNorth America Corporation(600-108thAvenueN.E.,
Suite 539, Bellevue,Washington98004) has introducedthe Luxor
ActualorArm, now beingshippedas an integralpartof the firm's9534
and9434-02antennacontrollersystems.Strokelengthsf rom 1I to 52
inchesare availableand the arm has installer-adjustable
limitswitches and reed type sensorswitching.Operatingvoltageis 36 voltsand
the 02 modelis for the Mark2 blockreceiverwhilethe 9534is intended
for the 9540/9550TVRO receivers.
Luxorhas also beendisplayinga12GHz electronicsand antenna
packageas a partof the firm's9570Mark2 satellitereceivingpackage
whichhas a blocklF of 950-1750MHz and is comoatible
withbothC
and Ku band satellites.
Jim Patterson Enterprises (111 E. Pacific,Salina, Kansas
67401;9131827-4682)
has announcedtheirSky Sentrylineof 6, 8 and
10footfiberglass
TVROantennas.
The antennasuse RoMHoglas
as
'reflective
the
material'and are formedto an accuracvof 0.015".The
feed/LNA mountingsystem is also constructedfrom fiberglassto
reducethe amount of surfaceblockagefrom the feed system.The
polarmount has a mechanicalazimuthadjustmentin additionto the
normallockingboltsas well as an adjustableheadthatcan be leveled
bytheinstaller.
Oilimpregnated
bronzebushingsgivethemount-plusantennalongterm rigidity.A signal-kansparent
domecoverfor the 10
foot antennaeliminateselectronicsweatherinoand a 3 inch lio with
reflectivematerialprovidesa'Tl signalshroud'io help reduceterrestrial interference.
IN STOCKIN TAMPA
DX COMMUNICATIONS
Receivers& Accessories
ARISTOCOM
ANTENNAS
Paraclipse
16 FootAntenna
12 FootAntenna
12 Foot PowderCoatedAntenna
9 FootAntenna
ActuatorRib MountingBracket
CHAPARRAL
PolarotorI and Polarotorll
Tune FeedPolarotorI for Paraclipse
HOUSTON
TRACKER
SYSTEMS
All Models
-
SKY SENTRYfiberglass feed support (left) and shroud (right)
RAYDX Satellite Systems, Ltd. (9 Oak Drive,Ocala, F|.32672;
904/687-2003)is promisingdealers their first look at the 'second
generation'
RaydxantennasSeptember2nd in Nashville.
Raydxwill
'firstgeneration'of
alsobe revealing
the
Raydxelectronics,
including
'dream receiver'
a
at the same time. Distributorswill get a closedsessienpeek in advanceon September1st.
Saginaw Steering Gear (Division,GeneralMotorsCompany;
3900 HollandDrive, Saginaw,Michigan48605) has createda new
miniatureballscrewlinewith applications
in precisionproducts.
The
newballscrewshavea nominalsizeof 0.1875inchesandballnutsare
availablein stainlesssteel,alloysteelor epoxy.OEM pricingis avail-
52 dB Gain LNAs
SPACEVISIONLNAs
STSiMBS& LSR SYSTEMS
CALL TOLL FREE
FOR PRICES
813t876-7677
TELEX:52-825
1-800-237-2903
1-800-282-7713
PROMAR,INC.
4912 W. LaSalleSt.
Tampa, Fl. 33607
PAGE28tCSD-2t7-85
DICEST
COOP'S SATELLITE
FIELD Reports
ACESAT Satellite ReceiverCorporation Pty. Ltd. (856 Princes
Highway,Sutherland2232 N.S.W.,Australia;[02] 521-5994)has
and PlesseyAustralia,
becomethe first licenseeof Scientific-Atlanta
Limitedto createan Australianreceiverequippedwiththe mandatory
B-Macsignaldescrambler.
The B-Macscrambling
systemhas been
11/12 GHzsatellite
videotransmissions
and
adootedfor allAustralian
the firstof the Aussatbirdsis scheduledfor launchand deployment
this earlyfall (November1 turn on date expected).Acesat has been
Scientific-Atlanta,Inc. (P.O. Box 105600,Atlanta,Georgia supplying4 GHz TVRO receiversystemsto 'outback'sitesfor several
30348:4041441-4000)
has releaseda 4 GHz (C band) and 12 GHz
yearsand will be pioneering12 GHz serviceas well.
(Ku band)4.5 meterantenna.Usingstretch{orming
techniques,
the
The Ganadian Satellite Communications Association has
12 piece antenna has a standard elevationover azimuth (El-Az)
been formed to deal with a myriad of problemsfaced by Canadian
mount.
and equipmentOEMs.The new Canadiantrade
dealers,distributors
Sigma SatelliteManufacturing& Sales, Inc. (1'115 Hamilton associationinvolvesall three levelsof the industryand is chairedby
Court, Menlo Park, California94025: 4151327-5210)
has introduced Sam Singer of Gensat. The new trade associationsprang out of
three 11 foot modelaluminummeshantennasequippedwiih a new discussionsbegunin Marchat the SPACE/STTItradeshow and it will
'stress
equalizerhub' system.The new hub is designedto reduceor
focus on the followingareasof activity:(1) Establisha nationalforum
eliminateshiftingof aniennapartswithtime so thatthe dishesmain- for the discussion
of problemsand issuesfacingCanadianTVRO;(2)
taintheirparabolic
shapeevenafterextendeduse in highwindareas. To negoiiatepremiumprogramviewingrights;(3) To developa proWesbarCorporation(4201U.S.Highway45 South,WestBend, gram to allowrentalor leaseor sale of premiumservicedecoders;(4)
To educatethe publicon TVRO; (5) To createa frameworkfor negoWisconsin53095; 4141334-2381)has introducedits new Eagle ll
seriesof satellite
antennapositioners.
Thedrivesfeatureno-end-play, tiationwith electedofficials;(6) To assistin the developmentof tech36 volt DC motor,10 turn pot for sensing,Acmethreadeddrivescrew, nical and safety standardsfor TVRO systems;(7) To establisha
and a weatherizedpackaging.The cover is releasedwith a single systemwherebyCanadianmanufacturedproductscan receive(US)
FCCtypecertification,
To establish
dealertrainingand
as required;(8)
screwand all antennadriveadjustmentsare retainedweathertighlby
certificationprograms;(9) Establisha forumfor mediationof disputes
replacingthe cover.
betweendealers,distributors,
OEMsand consumers;(10)To createa
'national'
liasonwith other
tradeassociations;(11) To makepresentationsto municipalbodiesseekingto restrictthe use of TVRO (antenna) systems.The dues structurevaries from $300 per month for
manufacturers
to $50 per year for dish owningconsumers.
Conifer Corporation(P.O. Box 1025,Burlington,lowa 52601;
800/358-3058)has created a product designedto eliminate'hum
bars' in the videofor TVRO (andoiher)systems.The systemconsists
of a small length of coaxialcable with a male F on one end and a
femaleF on the oppositeend.The'lVB'unitdecouplesAC/DCpaths
fromthe lineinsuringthatany videosignalscarriedby thejumperline
are freeof the annoyingeffectscreatedby the simultaneouspresence
of 60 cycle AC or some combinationof AC and DC.
able on the HiTec90 + units.
SATCOM,lnc. (623SagamoreParkwayNorth,Latayeite,Indiana
has introducedthe Spectreone piece,spun
47905;3171477-7471)
flai
aluminumperlorateddishantenna.The spundesigneliminates
spots of bumps in the reflectorsurface,allowsinstallationsin as little
as five minutes time, and includesa heavy duty circularring type
support and matchingpolar mount. Satcom also manufacturesthe
Optimaline of TVRO antennas.
LongTermparabolicshape
SIGMA'stresses'
Conifer's IVB Beats Hum Bars
Fantasy Unrestricted Network (FUN Channel;2902 Almaden
Expressway,San Jose,California95120;408/559-881
2) reportsSTo/o
of theirsubscribersrenewfor the WestarV adultratedservice.FUN is
expectedto select a new transponderon either F3R or Galaxyfor
expanded programmingwhich will include pay per view weekend
events.FUN is Oak Orionscrambledand is availablethrouohTVRO
o""ffi
[rL%;""T
8T,"Jl;",,
" " (p.o. Box7213,o cat
2;
a,FIo ri]as26z
Wesbar Whips Weather
904/687-4633)
will send you a recentlyreleasedbrochureexplaining
their video scramblersystem. The 1100 TVL/TVK Audio/Video
Scramblingsystem was created for video conferencingand other
uniden'E T
l
UST 5000 Block receiver offers LED channel
d i s p l a y ,a u t o m a t i c p o l a r i t yc o n t r o l , s l o w a n d f a s t
S C AN .
UST 730 Antenna Positionerfeatures built-in
programmabte antenna control and Optol n t e r r u o tc i r c u t r v .
cn
UST 6OO0 Block receiver features expanded
audio format and fine tuning skew adjustments.
U S T 7 1 O A n t e n n a p o s i t i o n e ro f f e r s c o m p a c t s t v l ,
ing, manual east v'/estcontrol and 3 digit LED
readout.
O
UST 70OO Block receiver features lR remote
built-in programmable antenna control accom
m o d a t i n g u p t o B 1 s a t e l l i t ep o s i t i o n sl n m e m o r v .
Sqtettile
Video
Services
UST 11O Aluminum Mesh Antenna is designed
f o r m a x i m u m f l e x i b i l i t ya n d m a i n t e n a n c e ,e a s y t o
i n s t a l la n d w e a t h e r r e s i s t a n t .
The Northeast'sLeadingDistributor
Sales and MarketingAssistance
Factory Authorized Service
Professional
TrainingSeminars
Co-op AdvertisingSupport
S a t e l l i t eV i d e o S e r v i c e s , I n c .
R R # 1 , B o x 8 5 S , C a t s k i l lN, Y 1 2 4 1 4
518-678-9581 .80O-528 DISH- National
8 0 0 - 8 3 1 - D I S H - N YO n l y
S a t e l l i t eV i d e o S e r v i c e s P A , I n c .
317 E. PleasanV
t a l l e y B l v d . ,A l t o o n a ,P A 1 6 6 O 2
814-942-5003 . 800-242-386O - PA Ontv
d
S a t e l l i t eV i d e o S e r v i c e s N H . l n c .
R R # 2 , H a r r i m a nH i l l R d . , R a y m o n d ,N H O 3 O 7 7
. 6 0 3 - 8 9 5 - 3 1 8 2 . 8 O O - 4 4 8- O O 1 2- N a t i o n a l
S a t e l l i t eV i d e o S e r v i c e sW N Y , I n c .
E a s t A v e n u e E x t e n s i o n ,H o r n e l l ,N Y 1 4 8 4 3
607-324-3435 . 800-642-0018 - Ny Onty
Luxor M/A Com Norsat Gensat Houston Tracker W i n e g a r d C o n i f e r L a u x O r b i t r o n K a u l - T r o n i c s
PAGE 30/CSD-2/7-85
SATELLITE
DICEST
'smalluniverse'applications
Venture Development Corporation (One WashingtonStreet,
where large numbersol addressable
Wellesley,Ma. 02181; 6171237-3000)
has yet another survey and
receivesites are not requiredby the system operator.
Mirafite(4050Chandler,SantaAna, California92704;7141641- marketstudyavailablewhich they reportrevealsthat consumersfor
TVRO would preferto purchasetheir TVRO systemsfrom specialty
7000) has reducedthe art and science of locatingand evaluating
storesdealingwith TVRO,electronicstores,or TV/Appliancestores.
terrestrialinterference(Tl)to a brietcasesizedtestset system.Called
'Clearsite',the newpackageinvolvesa smallhandheldantenna/LNA The detailedstudy,more than 200 pages in length,sells for $3,250.
combinationthat is connectedto a signalprocessorand displayunit.
The entire packageoperatesfrom a self-containedbatteryand the
SALES Reports
the
usermerelywalksthe sitewiththepackageturnedon to determine
B i r d v i e w S a t e l l i t e C o m m u n i c a t i o n s .I n c . ( 8 5 0 0 W . 1 1 o t h
price
is
Dealer
Tl
of
the
sources.
Tl
the
direction
$795.
levelsof and
Street,Overland,Ks. 66210; 913/451-2636)
has enteredinto an
(GECC)to proagreementwith GeneralElectricCreditCorporation
videBirdviewdealerswitha consumerfinancing programfor Birdview products.Birdviewis alsoseekingSEC permission
to sell 1.2M
shares of stock presentlyowned by 16 membersof the publicand
coroorateofticials.
R.L. Drake Company (P.O.Box 112,Miamisburg,
Ohio 45342;
reportsthatf rom day one throughMay of this year,the
5131866-2421)
firmhasshipped270,000TVROreceivers.
Basedupona totalTVRO
universeof 1M systems,thisaccordsto Drakea25k shareof market
to date.The first DrakeTVRO receiverswere shippedin 1981.
MIRALITESends Tl Packing
The National University Teleconlerencing Network (NUTN,
OaklahomaStateUniversity,
StudentUnion330, Stillwater,
Oklahoma74078;4051624-5191)
willstagea 'teach-in'December8-11. The
conceptis thatthosewho wouldlikeio learnthe finerpointsof creating
a teleconference
or privatesatellitetransmissionpackagewill be able
to learnby doing.The groupwillcreatea livetelecastusinga satellite
and be brokenintotwo learningsessions;one for the uplinkportion
and anotherfor the downlinkportion.Studentswill be ableto participatein bothsessionsand learnby doing.Registration
in advancewill
be reouired.
SatelliteShoMime (NovaVideo Productions,Box 637, Highway
14 East, Richland Center, Wisconsin 53581; 608/647-4246)has
movedtheir transpondereffectivewith their July 2nd program.The
programis now seen on transponder 5 at 10 PM easterntime each
Tuesday,Satcom F4. Two new featuresslantedfor regularairing
includeMike Gustafsondealingwith technicalfeaturesand regular
movie reviews('MovieMania')by New Yorker Ed Hulse.
Scientific-Atlanta, Inc. has been chosen to provide the Ted
TurnerCNN operationwith his 11 meteruplinksystemdesignedto
transmitthe 24 hour CNN service into EuropestartingSeptember
1Sth.The newfacilitywilltransmitto an IntelsatV birdat 4 GHz and
within the satellitethe signal will be 'cross-strapped'or frequency
translatedto the 11 GHz K band for downlinking
into the UK and
elsewherein Europe.
Distributors
and OEMsseekingto reachCanadianTVROdealers
willfind a new serviceavailablefrom Skytrak Resources (1842East
'I1th
Avenue,Vancouver,BritishColumbia,CanadaV5N 121;604/
873-8222)of interest.Skytrakhas createda 'purged'mailinglist of
some1,500CanadianTVROdealerswho are activelysellingTVRO
systemhardwareand willmailliteratureto thosedealersfor you under
contract.DennisShouldicesaysthe listis constantlybeingevaluated
and corrected,
with each mailing.
SPACE has addedTom Cramer as a new staff memberto concentrateon a varietyof functionsincludingnew membershiprecruitment(inthe dealerarea)and membership
communications.
Cramer
comes to SPACE from a trade associationdealingwith plumbing/
heatingand coolingcontractors.
CALENDARiThroughAugust30th
Television:
BORESIGHT,9PM ET,TR20,F4;World'ssmallest
J u l y1 8 :
TVRO receiver,Part One M/A-Com's Bunker on
Scrambling.
SatelliteShowcase,F4, TRs, 10 PM.
July23:
BORESIGHT,9 PM ET, f R20, F4; Wirth on survivJuly25:
ingas a dealer,PartTwo Bunkerinterviewon scrambling.
July30:
BORESIGHT,
I PM ET, rR20, F4;Wirthon dealer
Aug.01:
Part3 Bunkeron Scrambling.
competition,
Aug.06:
gPM ET, TR20, F4; Wirthon Dealer
Aug..08:
BORESIGHT,
self-help,Uniden'sDoctorKonishi(PartOne).
A u g .1 3 :
SatelliteShowcase,F4, TR5, 10 PM.
I PM ET,TR20,F4; Uniden'sDoctor
BORESIGHT,
A u g .1 5 :
Konish(PartTwo).
Aug.20:
PM ET,rR20,F4; drawingfor CSD
BORESIGHT,9
Aug.22
winner in DealerVacationIn Paradise(contest).
Aug.27:
SatelliteShowcase,F4, TR5, 1OPM.
9 PM ET,TR20,F4;Previewof NashBORESIGHT,
Aug.29:
villeShow.
Shows/Meetings
SatelliteVideo Services Product Introduction
J u l y1 7 :
Seminar (advanceregistrationrequired).Contact
DonnaMcCann518/678-9581).
July 26127128:First SPACE scrambled dealer certificationprogram,transmittedvia satellite.Downlinksitesin DeDallas,Phoenix,Van
nver,Knoxville,
Sacramento,
Merced(California).
Minneapolis,
Nuys,Milwaukee,
For information,costs, registrationcall SPACE at
703/549-6990.
July31:
S a t e l l i t eV i d e o S e r v i c e s B l o c k C o n v e r s i o n /
SMATV seminar (advance registrationrequired).
ContactDonnaMcoann 518/678-9581. Note: AdditionalseminarsscheduledduringAugust,call SVS
for details.
Aug. 2-4:
FifthAnnualNorthwestSatelliteTradeConference,
MGMGrandHotel.Reno.Nevada.SPACEcertification coursesavailable.Contact503/389-1553.
systemseminar,Minneapolis,
July 13-15:
Jenold(Gl)Technical
Mn. ContactBeth Schafer2151674-4800.
Upcoming:
Sep.2-4:
TenShow,Nashville,
NashvilleTrade
STTI/SPACE
nessee.More than 700 booths,12,000peopleanticioated.ContactSTTI 405/396-2574.
I
l r

July - The Old CATV Equipment Museum

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