Barry Willis

Ever wonder why your cable rates keep climbing? Take a peek behind the scenes at what cable providers have to pay for programming: With only three months remaining on its current contract, ESPN, the sports network, and Cox Communications are still negotiating future annual affiliate rate increases&mdash;which are currently projected at 20%. Merrill Lynch analysts estimate that Cox pays ESPN (and parent Walt Disney Company) approximately $400 million per year, costs that are passed on to subscribers. Cox is seeking a reduction in fees, a move that could become a model for other cable companies and satellite services. Similarly, Fox Sports Net reportedly asked the Cox organization for a 35% increase for use of its 12 regional sports networks. Affiliate fees account for more than 10% of total annual revenue for big media companies like Disney, TimeWarner, and Viacom, according to <I>The Hollywood Reporter</I>.

The <A HREF="http://www.hrrc.org">Home Recording Rights Coalition</A> (HRRC) has thrown its support behind a proposal that could extend consumers' rights in the digital age.

News Corp. and DirecTV: The satellite broadcast merger appears to be a done deal now that both the Federal Communications Commission and the US Department of Justice have given their approval. News Corporation will buy a 34% stake in Hughes Electronics, giving it control over satellite broadcasting service DirecTV.

A cheaper, better future: New microprocessors from <A HREF="http://www.intel.com">Intel Corporation</A> could revolutionize the market for flat-panel and slim-profile big screen televisions, according to a December 17 <A HREF="http://www.nytimes.com/2003/12/17/technology/17chip.html?th">report</A> by John Markoff in the <I>New York Times</I>. Leveraging large-scale integration, the company's chips and design expertise could yield big bright high-definition displays at prices far below today's. In what is perhaps a misquote of Intel executive Richard Doherty, Markoff predicts 50" liquid-crystal-on-silicon (LCoS) rear-projection "engines" selling for $1000 by the next winter holiday shopping season.