DIRECTV Could Team With EchoStar On HDTV

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DIRECTV Could Team With EchoStar On HDTV
Incoming boss John Malone says he would like a relationship with the rival satcaster.
By Phillip Swann

Washington, D.C. (December 30, 2006) -- Liberty Media Chairman John Malone says DIRECTV could team with EchoStar on several High-Definition TV projects.

That's according to a new article published by Broadcasting & Cable Magazine.

Liberty Media this month took control of DIRECTV in a stock swap with former parent News Corp. While the deal is not expected to close until mid-2007 or later, Malone is already reviewing the satcaster's plans for high-def.

He told B&C that he's excited about DIRECTV's upcoming launch of two satellites that will give the satcaster capacity to offer up to 150 national HD channels.

"DIRECT specifically is about to be able to offer an explosion of High-Definition services that cable is going to have a hard time matching," Malone said.

David Hill, DIRECTV's entertainment president, told TVPredictions.com recently that the satcaster will have at least 40 national high-def channels by mid-2007. (It now has fewer than 10.)

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Malone also commented on speculation that he will seek a merger with EchoStar, DIRECTV's chief rival. He noted that many observers believe that the federal government would not approve the deal. But if a merger was not possible, he said the two companies could still work together on various projects, particularly high-def.

"You know, if the government wouldn't let us put the businesses together today, we can at least save a lot of cost and capital by cooperating in certain areas," Malone told B&C.

He added: "We could form an alliance with EchoStar and share a High-Definition platform, which would either double the capacity or cut the costs in half or some combination. We could develop content jointly with EchoStar for that High-Definition platform, which would be very interesting."

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology.

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