Audio Video News

Versatile, low-cost set-top boxes are coming soon, thanks to a joint venture announced February 23 by digital television software developer OpenTV and direct-broadcast satellite service EchoStar Communications Corporation. The device will incorporate both interactive features and a hard-disk recorder, and may be rolled out by EchoStar's DISH Network by the end of the year.

Mountain View, California-based OpenTV is developing applications and interactive television services, including video replay, ITV advertising, and entertainment services such as providing product information on items seen in movies, sports events, or music videos. The hard-disk recorder will let users record favorite programs without the use of videotape, much like recorders already on the market from TiVo and RePlay TV. With its software installed in more than 6.1 million digital set-top boxes worldwide, OpenTV is a major provider of software for digital interactive television, and is designated as a preferred operating system by 25 television network operators worldwide, including the UK's British Sky Broadcasting (BSkyB) and France's TPS.

Interactive television is on its way, most industry observers agree, but the exact form it will assume is still unclear. Without being specific, EchoStar chief Charlie Ergen was enthusiastic about the joint venture: "Interactive television, combined with a hard-disk drive that uses OpenTV's software, is an exciting new medium that can provide DISH Network with tremendous opportunity to produce new content for our customers, as well as offer them convenient e-commerce applications,'' he said. "EchoStar is proud to work together with OpenTV to lead America into the 21st century of television.''

The two companies hope to attract 2 million US customers by 2001, after which they plan to take the device and service global. OpenTV president Jan Steenkamp said his company has "proven our worldwide leadership in bringing people a new kind of television experience, and this partnership with EchoStar—already enjoying massive US reach—solidifies that position. This OpenTV-enabled hard-drive product will combine the technological and visionary power of two industry leaders, providing TV viewers with everything from video-on-demand to entertainment services to e-commerce capabilities—all in one low-cost box."

EchoStar's part in the venture includes contributing intellectual property, market experience, and the necessary bandwidth to broadcast OpenTV's interactive television services and hard-drive applications. The deal includes the issuing of 2.25 million shares of OpenTV stock to EchoStar, stock backed by investments from companies as substantial as America Online, General Instrument Corporation, News Corp., Sun Microsystems, and Shaw Communications.

In addition, EchoStar has announced a stepped-up timetable for deploying more satellites. On February 24, the company revealed plans for an aggressive launch schedule that will bring the number of EchoStar satellites to nine by 2003. Some of the new "birds" will be equipped for two-way Internet communications, business-to-business services, and other features. The first of three new satellites, EchoStar VI, has already been built and will be launched this spring. Competitor DirecTV, a subsidiary of Hughes Electronics, announced last month that it also plans to debut two-way satellite applications for the Internet (or "DirecPC") by the end of the year.