ry analysts predict more than 12 million by the year 2000. However, all the current providers are in heavy debt and operating at a loss. The providers 'policy of subsidizing the cost of the customers' receiving equipment down to exacerbates the operating losses as low as $100 in order to attract market share. Since none of the receiving systems is compatible, if a provider goes out of business, as AlphaStar has already, customers are left with worthless equipment.Expand ServicesDBS firms are seeking to expand the business by serving new categories of customers.ExampleBusiness Vision, partnered with EchoStar, and Member Direct Television, in cooperation with DirecTV, are providing business television to thousands of receiving sites. The programming includes tailored business news and information, training programs, industry-specific material, and proprietary packages for large firms.More Product ChoicesExampleDBS companies venture into new business areas, America Online partnered with DirecTV, Hughes Network Systems, Philips Electronics, and Network Computer to work on developing "AOL TV." DirecTV and AOL planned to work together on a service that would combine digital satellite television programming and AOL TV's enhanced interactive TV Internet service. Hughes Network Services planned to design and build a dual-purpose set-top receiver, complete with an advanced set-top box for AOL TV provided by Philips. Network Computer's contribution was to provide a complete software platform for the new service through the company's TV Navigator software.Strategic PartnershipExampleAOL TV/DirecTV plan to market the AOL TV/DirecTV service to a combined base of 24 million subscribers. The service will provide AOL content in addition to satellite TV programming in one platform. The deal also boosts the broadband ambitions of both companies. Hughes' planned $1.4 billion Spaceway geostationary broadband satellite system will benefit by being ...
