DBS Subscriptions Continue to Surge

Television viewers can't get enough of direct broadcast satellite services. Both DirecTV and EchoStar have reported huge increases in new subscribers for the third quarter of 2000.

DirecTV now has more than 9 million subscribers, thanks to 450,000 who signed on through September 30. A unit of the Hughes Electronics Corporation, DirecTV claims a 37% increase in subscribers living in urban and suburban markets. Subscriptions in the top five cities in its markets grew by 50%, due in large part to the addition of local TV signals to DirecTV's feed. The top ten cities showed a 40% growth rate.

Littleton, Colorado-based EchoStar is also doing well, reporting a 21% surge in new subscriptions during the third quarter, for a total of 4,755,000 as of September 30. The company claims to have landed 58% of all new DBS subscribers during the first nine months of 2000. EchoStar has traditionally had approximately half as many subscribers as its larger competitor. Despite recent gains, the two companies' relative market shares have remained roughly constant, although new subscriptions in October and November have pushed EchoStar's total subscriber base over the 5 million mark.

That proportion may change, however, with EchoStar's continuing effort to increase premium services. EchoStar's Dish Network is now offering two channels of Showtime in Dolby Digital 5.1 audio. Showtime East (channel 318) and Showtime West (channel 319) both feature box office hits and original programming with Dolby Digital 5.1 signals. Films showing this month with surround sound include The Story Of Us, Double Jeopardy, Being John Malkovich, Notting Hill, The Thomas Crown Affair, and many others. Coming in January: Sleepy Hollow, The World Is Not Enough, and The Limey. Showtime original programming in Dolby Digital includes the series Beggars and Choosers, Stargate SG-1, and Queer As Folk.

"We are pleased to enhance Showtime's channels with Dolby Digital for our viewers who already enjoy Dish Network's Showtime Unlimited package," said Michael Schwimmer, vice president of programming at EchoStar. "Dish Network, which also provides Dolby Digital sound for a number of pay-per-view movies, is committed to providing the best audio and video to our customers."

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