t to the dominance of cable broadband. In the last year, the number of DBS subscribers grew to 13 million homes from 10.1 million, vs. 67.7 million cable homes. More than 15% of all multi-channel video subscribers are DBS customers, and DirecTV and EchoStar are among the top 10 video providers in the United States, joining the ranks of AT&T Broadband, Time Warner Cable and Comcast Communications.Cable operators spent billions of dollars on preparing to offer glitzy interactive services. However, a lot has changed over the past year. The number of satellite players has shrunk from four to two: DirecTV and EchoStar. They are doing surprisingly well in rounding up new subscribers and revenue since the federal government gave them the right to retransmit local stations, which they do for an extra fee. Moreover, over the next few months, satellites will take the lead in offering interactive digital TV services, as well as two-way high-speed Internet connections, coast to coast. That has made Hughes Electronics, parent of DirecTV deals with power players including America Online, Microsoft and Blockbuster, and programmers from the National Football League to Walt Disney. They are attracted to DirecTV because its 8.7 million subscribers account for about two-thirds of the satellite market. It expects to end this year with nearly 10 million customers, up 20% over last year. As a result, it reaches more homes than anyone except AT&T and Time Warner, and it is on pace to pass the cable giants around 2005. About 70% of DirecTV's new customers come from areas served by cable. No wonder investment bankers are so tantalized by the possibility that General Motors, which owns Hughes, is ready to fundamentally change the media landscape with an outright sale of the property. Analysts say it would cost a buyer about $50 billion.7.America and the WorldSatellite communications is an international business, with satellites orbiting the globe and ...
