Fifty years ago, Arthur C. Clarke envisioned a satellite system beaming TV signals to individual homes. Now, the science fiction writer's vision is about to come true in the USA.
In early May, Thomson/RCA plans to start selling pizza-size satellite dishes in five cities - Albuquerque; Jackson, Miss.; Little Rock; Tulsa; and Shreveport, La. - at department and electronics stores.
RCA's system, retailing for $700 and up, will pick up more than 70 channels from a Hughes satellite shot into orbit in December. By the time the systems are available nationally this fall, another satellite will have boosted the number of channels to more than 150.
More manufacturers will start making direct broadcast satellite, or DBS, equipment next year, and prices will probably drop.
The 10 million rural homes neglected by cable TV are "finally going to have a service on a par with that being delivered in urban areas," says Jeff Almen of the National Rural Telecommunications Cooperative, a private alliance of 700 rural telephone and electric systems.
But DBS may also tap into suburban viewer discontent. Art Boudreau, of McLean, Va., has been waiting for a small, convenient dish. He doesn't subscribe to cable, relying on his rooftop antenna for nine local channels: "I had the feeling the cable people were ripping people off."
Says home satellite pioneer Taylor Howard of Chaparral Communications, DBS "sets the consumer free."
Those who buy a dish in one of the initial five cities should be able to install it anywhere in the USA, and enjoy laser disc-sharp video and CD-clear sound.
For people who live in subdivisions with strict covenants against satellite dishes, DBS should bring less resistance from neighbors. But vague rules could prohibit the 18-inch dish, too, says Bob Brown of the National Conference of States on Building Codes & Standards: "It will require an educational process that not all satellite dishes are created equally ugly."
DBS is also taking some heat from companies that already offer cable and satellite programming, as well as new companies touting other small dishes. "Dish envy," Thomson's Joseph P. Clayton calls it.
The cable industry points out that DBS cannot rebroadcast local stations, while cable can and does. (Out-of-town network affiliates can be had in an option package, however).
Also, startup costs of DBS are too high for most people, says Rich D'Amato of the National Cable Television Association. "We see it as legitimate competition, (but) we still think cable is it."
Meanwhile, PrimeStar, a joint satellite venture of major cable companies, is leasing 3- to 4-foot dishes, including programming, for about $1 a day to 70,000 mostly rural customers. Other possible DBS competitors include Echosphere Corp., of Englewood, Colo., and cable giant Tele-Communications Inc.
There are about 4 million large satellite dishes already installed in the USA. Owners can choose from almost 300 channels, including live feeds and cable services, although many are scrambled and viewable only by subscription.
The big-dish industry may coattail on Thomson's planned $50 million media blitz this fall. They'll also try simplified sales tactics. Already General Instruments plans to rent, through retailers, a 5-foot fixed dish with equipment and selected programming for $29.95 a month.
Consumers will most likely benefit from the battle, says Tom Campbell of Dow Stereo/Video, a San Diego-based retail chain. "There's no question the greater the competition, the lower the price. . . . Ultimately the consumer wins."
How DBS works 1. Broadcast centers in Castle Rock, Colo., and Oakdale, Minn., transmit digitally compressed programming to two satellites. 2. The satellites, in stationary orbit 22,300 miles above the equator, relay programming to satellite dishes in homes across the country. The signal is 5 times stronger than traditional satellites, and can handle 8 times as many video signals. 3. The signals are received and translated by an 18-inch DBS dish and set-top box.
How it stacks up against cable DBS
-- Cost: $700-up, plus installation (around $200).
-- Monthly bill: From $7.95 for basic programming to $64 for "Cadillac" packages, plus Pay Per View.
-- Channels available: More than 150, from two suppliers.
USSB. 20 to 25, including: All-News Channel, Cinemax East/West, Comedy Central, Flix, HBO/ HBO2/HBO3 East/West, Lifetime, The Movie Channel East/West, MTV, Nickelodeon, Showtime East/West, Showtime 2 and VH-1. Cost: Six basic channels, $7.95; six to eight premium plus six basic, $24.95; everything, $34.95.
DirecTv. 50 to 60, including: A&E, CNBC, Cartoon, CNN, Court TV, Country Music TV, C-SPAN, Discovery, Disney, E!, Encore, ESPN, Family Channel, Headline News, Playboy, Sci-Fi, TBS, TNN, TNT, Turner Classic Movies, USA, The Weather Channel, WRAL (Raleigh, N.C., CBS), WABC (New York, ABC), WXIA (Atlanta, NBC). Coming with the second satellite: CNN International, Travel Channel, C-SPAN2, Newsworld International, Disney West, Encore 2-7 (specialized topic channels such as love stories, mysteries, drama, Westerns).
Cost: 23 basic, $21.95; Playboy, $9.95; ABC/CBS/NBC, $3.95 (not available where network TV is available via antenna or cable).
Also, at least two dozen PPV channels: Movies start at $1.95; sports/events, $12.95 and up.
-- Where available: Expected in all of USA by winter 1994.
-- Advantages: More movies on demand; services customized by interest, particularly in sports.
-- Disadvantage: Start-up cost.
CABLE TV
-- Cost: About $25 installation.
-- Monthly bill: Average $20.75 for basic cable.
-- Channels available: 95% of subscribers get 30 channels or more. One-third get more than 54.
-- Where available: Cable reaches 2 of every 3 homes in the USA; will rise to 72% by 2000.
-- Advantages: Established service; no need to buy equipment.
-- Disadvantages: Public dissatisfaction with service; 150-plus channel services still a while away.
Sources: USSB, DirecTv, Cable Television Advertising Bureau, National Cable Television Association
