Traditional satellite TV providers are facing a number of very real threats from all sides as Comcast and NBC join forces and satellite TV becomes available online. Hulu, a wildly popular free video streaming website has made the whole process that much more complicated. As Hulu sets up to start providing increased content for a subscription fee satellite TV providers can start to feel the crunch.

Hulu is announcing a subscription option for their services that would open up more content than what is currently offered for free. At $10/mo they expect a lot of users to sign up, and that may mean canceling their current cable or satellite TV services.

With Hulu currently in talks with CBS, Viacom, and Time Warner they can position themselves as the leaders in online video streaming. They already have a substantial lineup consisting of Fox, ABC, Lionsgate, MGM, MTV, NBC, Paramount, Sony, PBS, Warner Bros. and more.

If a paid subscription model works for Hulu is could spell real trouble for satellite TV providers and could mean start the slow downfall of the middlemen.

In the past middlemen have not fared well when the internet enters their field. Look at bookstores and Amazon, video rentals and Netflix, record stores and iTunes Store, Newspapers with blog and classified ads with Craigslist. We may soon be adding satellite TV and cable services to that list.

Ultimately, television networks and the ISPs hold most of the cards. TV networks control the content and the ISPs determine download speeds and video quality. With traditional cable and satellite TV providers virtually cut out of the internet television market altogether there is little they can do to compete and ensure survival.

Attribution: Subscription Hulu: Beginning of the End for Cable, Satellite TV?

Comcast recently made bid to acquire NBC Universal Co. and numerous satellite TV providers are concerned about the potential online loophole that may be created by the matching.

As owners of NBC content Comcast could conceivably argue that they have exclusive rights to streaming the content online. This would give them a substantial advantage over other pay-TV providers like DISH Network and DirecTV.

Fortunately, the FCC, who has yet to approve the acquisition, allows for interested parties to voice concerns they have regarding pending mergers and acquisitions. “Our concern is Comcast using the NBC programming that it would own to be anti-competitive in pay-TV market,” says vice president of regulatory affairs for DirecTV, Stacy Fuller.

Comcast isn’t particularly worried about the satellite providers’ objections and feels they’ve already been addressed with agreements made between Comcast and independent NBC stations. David Cohen, executive vice president at Comcast, says they have agreed not to move sports and premier entertainment from NBC. “If those shows appeared on NBC stations, they would also be available to satellite-TV customers,” Cohen said.

John Malone has long been a prominent name in the cable and satellite TV industry. This past week he resigned from his position as the DirecTV board chairman and gave up most of his voting control. The move was announced back in April in order to bring Malone and DirecTV into compliance with federal media ownership regulations.

The FCC ruled that Malone and his family could not continue to own a part of multiple TV signal providers in Puerto Rico. Malone’s family controls Liberty Global Inc. which owns Liberty Cablevision Puerto Rico.

In addition to Malone’s resignation, Paul Gould and Greg Maffei also stepped down from the DirecTV board. Michael D. White, the current President and CEO of DirecTV will take over as the chairman of the board. Elected to serve as board director is Samuel DiPiazza Jr.

The details of the satellite TV deal are this:
Malone and his wife have established trusts for their children and exchanged 21.8 million Class B shares for 26.5 Class A shares. The Class B shares have 15 votes each and the A class shares have just one. This brings Malone’s voting stake down from 24.3% to 3.

DirecTV is one of the largest satellite TV providers in the US and news of Malone’s resignation and share movement caused DirecTV’s stock to fall 3.9% on the day.

One of the nation’s largest satellite TV providers has team with a cable television rival to start selling local advertising spots for the first time.

The partnership between NCC Media, an advertising and sales media firm owned by Comcast, and DirecTV will allow for ads to be aired coast-to-coast.

In the past DirecTV has only been able to sell ad time to national advertisers due to software restrictions that prohibit different TV streams being shown in different markets. New technology allows the satellite TV provider to air different commercials to different cities, meaning local advertisers can buy air time in their city alone.

For years, NCC has been selling local advertising for numerous cable TV companies including Comcast, Time Warner Cable, Cox Communications, and Verizon Communications. While they have no experience selling ads for satellite TV, their strength in local markets make them an ideal partner for DirecTV.

Sometime in the next year DirecTV will start selling ads in the 25 largest markets in the US. These ads will be pushed down from the satellites and stored in individual customers digital video receivers. During the commercial break, the receiver determines which ads to display.

Last week DISH Network became the first satellite TV provider in the US to offer local channels in 100% of markets. While most of their competitors are offering around 75% DISH Network has taken the initiative and started offering local channels to all markets.

This decision comes on the heels of President Obama signing into law the Satellite Television Extension and Localism Act of 2010. The bill encourages satellite TV providers to make local content more readily available to customers.

DISH Network is making local channels available in 29 new markets:

• Alpena – MI
• Beckley/Oak Hill/Bluefield – VA/WV
• Biloxi Gulfport – MS
• Binghamton – NY
• Bowling Green – KY
• Columbus – GA
• Elmira – NY
• Eureka – CA
• Glendive – MT
• Greenwood/Greenville – MS
• Harrisonburg/Laurel – MS
• Jackson – TN
• Jonesboro – AR
• Lafayette – IN
• Lake Charles – LA
• Mankato – MN
• North Platte – NE
• Ottumwa/Kirksville – IA/MO
• Parkersburg – WV
• Presque Isle – ME
• Salisbury – MD
• Springfield/Holyoke – MA
• St. Joseph – MO
• Utica – NY
• Victoria – TX
• Watertown – NY
• Wheeling/Steubenville – WV/OH
• Zanesville – OH

Attribution: DISH Network becomes first pay-TV provider to offer broadcast channels from all 201 U.S. local markets

As we mentioned in an article last week, the Big 12 was on the verge of collapse as Colorado and Nebraska fled the conference for the Pac 10 and Big 10, respectively. We mentioned then that negotiations hinged on Texas’ decision. If Texas left it would be for a lucrative new TV deal. If they stayed, it would likely involve a better satellite TV deal for them.

The realigning came to a quick end this morning as the Big 12 and Texas reached a deal that, not surprisingly, involved a new TV deal.

Texas has stated its formal intention to stay in the Big 12, all but assuring that no more schools leave the Big 12.

The details of the deal are not well known, but speculation shows that each of the teams left in the Big 12 will receive more money per year than they have been receiving. Furthermore, Texas will be free to pursue its own satellite TV network.

Texas is very likely to create their own television network and that network is expected to be widely popular throughout the state. UT athletics are well followed in the state and the freedom to create a Texas satellite TV channel could mean a huge windfall for the University.

Most people are aware of the numerous benefits to satellite TV over network television and cable. What most people don’t know about is satellite TV for PC or more importantly, for laptop. You’re probably thinking this new wrinkle in the whole TV/cable/debate is only for those with serious computer hacking skills, but you’d be wrong. There are numerous services available that are easy to use, even for the laymen, that will give you the capability to watch satellite TV on your PC.

Instead of relying on a satellite TV provider to come to your house, install a dish, and run some wire, satellite TV on PC users simply download some software that grants them access to hundreds of channels.

As long as users are connected to an internet connection they have access to all the channels they would normally get with a traditional satellite TV package.

Probably the biggest upside to this type of service is the price. Instead of receiving a monthly bill users are typically only required to pay for the software necessary to perform the service. That means you’re looking at a one time fee instead of a recurring monthly bill.

Personally, I paid a lot of money for a large high quality television and I intend to get my money’s worth with regular old satellite TV on my TV, but satellite TV on PC looks like it may be able to position itself as an affordable alternative.

If anyone is using any satellite TV on PC services, please note in the comments below what you think about the service. Is it better or worse than regular satellite TV? How’s the quality of the service? Do you recommend users switch to satellite TV on PC?

The University of Colorado left the Big 12 today. This move along with rumors of Nebraska and possibly Missouri jumping ship from the Big 12 as well could mean a completely different college athletics outlook this come this fall.

Colorado left the Big 12 for the Pac 10 and rumors are abound that Nebraska will be leaving for the Big 10 sometime in the next few days. With the Big 12 north in shambles pressure is on Big 12 south powerhouses Texas and Oklahoma to make a decision to stay or go.

You have to be wondering what all of this has to do with TV and satellite TV in particular. The answer is 2-fold.

1. The Big 12 was formed because of TV and now it’s falling apart because of TV. One of the biggest ways for colleges to make money is TV deals for college athletics. Colorado stands to gain TV money by moving to the Pac 10 and Nebraska stands to gain by moving to the Big 10. The Big 10 has their own satellite television network and being able to feed from that trough is a big opportunity for Nebraska.

   The Big 12 was initially formed about 15 years as a way to gather big names in college sports and sell TV time. Now they fall apart because of more lucrative TV deals.

2. Simply put, TEXAS – The University of Texas is a huge huge huge TV draw for the entire (extremely well populated) state of Texas. UT controls most of the Texas football market. That makes Texas an extremely valuable commodity to any conference that can draw Texas out of the Big 12. Currently the front runner looks like the Pac 10. If they succeed in breaking up the Big12 and manage to snag Texas in the shakeup they stand to be TV powerhouses in the future.

Colorado is already leaving the Big 12. If no one else leaves, the Big 12 can probably survive just fine. If Nebraska or Missouri leave for the Big 10, expect to see the Big 12 schools quickly scatter to different conferences with lucrative satellite TV packages or networks. Remember that Texas is the key player here. They could probably create their own Texas satellite TV network and be successful, if someone else grabs them they will be well situated to negotiate big time TV deal.

Attribution: Assessing The College Football Scramble

You’ve seen new films in theaters playing in 3D, most notably Avatar and Alice & Wonderland. For the first time, that technology is being brought to homes around the United States. With the start of the 2010 World Cup ESPN has taken a big step towards 3D TV.

Announced in January, ESPN intends to broadcast 25 world cup matches, including the final on July 11^th, in 3D. Additional events to be aired on ESPN 3D include the Major League Baseball Home Run Derby, and the BCS college football National Championship. In the future, the X Games and NBA are likely to be shown on ESPN 3D.

Currently, this service is only available to DirecTV and Comcast customers, but many other distributors are expected to start carrying 3D channels, including Dish Network. Sony, IMAX, and Discovery are all working with satellite TV providers to create their own 3D channels. As more and more of these channels come to market more distributors and networks will be creating 3D channels to fill consumer demand.

The future of television is 3D and that future starts today.

Attribution: ESPN 3D Launches Today: The First 3D TV Channel

The people of China apparently want a little more TV in their lives.

There is currently a huge black market forming around the installation of satellite TVs.

The Chinese government tightly restricts which channels and networks can be broadcast throughout the country. In rural areas this means satellite TV is allowed so that citizens can get their free Chinese programming.

The black market that is forming is centered around more powerful dishes that can take in signals from overseas. In 2008 over 10 million illegal, overseas-signal-capable, satellite dishes found their way into China and 40 million more dishes were shipped for installation last year.

What’s most surprising about this black market is that it’s cropping up in the urban areas as well as rural, meaning the urban community in China is willing to take risks for some overseas satellite TV programming.

The government is taking steps to stop the illegal installation of satellite TV dishes by requiring installation companies to buy permits. This allows the government to track where the dishes come from and where they are sold and installed. In addition to this, they are banning the sale of receiver equipment on the open market.

These restrictive new rules, along with an inability to enforce them, could potentially create a booming black market that local governments may be unable to stomp out.