[opendtv] FW: USDTV Lands in Chapter 7 Bankruptcy
- From: "Dale Kelly" <dalekelly@xxxxxxxxxxx>
- To: "OPENDTV" <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 11 Jul 2006 21:55:14 -0700
USDTV LANDS IN CHAPTER 7 BANKRUPTCY
TVNEWSDAY, JUL. 11, 2006, 4:03 PM ET
http://www.tvnewsday.com/articles/2006/07/11/daily.4/
But founder/CEO Steve Lindsley said there is still hope that the
wireless cable service with its 16,000 subs could survive.
By Harry A. Jessell
If you want to receive Lifetime, Fox News and ESPN, you?re
probably going to have to do it the old fashioned way?through your local
cable or satellite TV provider.
U.S. Digital Television, the pioneering company that offered
those and other popular cable networks to subscribers via digital broadcast
spectrum, is on the edge of extinction, having filed for bankruptcy late
last week.
Confirming industry reports, CEO Steve Lindsley confirmed today
that USDTV is in Chapter 7 bankruptcy, which usually means the end of a
company and quick dissolution of its assets.
But, Lindsley said, the service is still on the air and that he
and other managers are in ?serious discussions? with the bankruptcy trustee
to permit the continuation of the service so that the assets can be sold.
What?s more, he said, ?we?re involved with a third-party
investment group to participate? in acquiring the assets.
?The acquirer of the assets is interested in the robust nature
of the video service and they are already in the double play of Internet and
voice,? Lindsley said. ?To be able add video to their package is appealing
to them.?
Lindsley?s comments were carefully worded and he declined to
answer questions beyond the comments.
USDTV has struggled since its 2003 debut, but got a second
financial win last year when five TV station groups?Fox, Hearst-Argyle, LIN
TV, McGraw-Hill and Morgan Murphy Stations?and Telcom DTV agreed to invest
$26 million into the venture.
Its latest offering included 30 channels of basic cable for
$19.95 a month and Starz for an extra $6.95 a month. Subscribers also had to
pay $24.95 for the ?start up kit? that included use of the proprietary
set-top box that receives the digital broadcasts and displays them on
conventional analog TVs.
USDTV leased digital capacity from broadcasters in each of the
markets it targeted and marketed the service primarily through Wal-Mart.
Lindsley founded USDTV and still believes in the over-the-air
cable concept. ?We were well on our way to proving the business model.?
According to Lindsley, USDTV has 16,000 subscribers in four
markets?Dallas; Salt Lake City; Albuquerque, N.M., and Las Vegas. And since
a relaunch last December, the company has fielded more than 65,000 calls for
service and inquiries in those markets, he said.
Lindsley conceded that USDTV had problems typical of all
startups. USDTV has trouble with a new billing system and with third parties
who had been hired to install the USDTV system in subscriber homes.
But while such problems may have contributed to higher than
expected churn of 4%, they were not critical, Lindsley said. Overall, he
said, customer satisfaction was good and three quarters of subscribers had
recommended or said they would recommend the service to friends and family.
?The overarching reason USDTV filed for bankruptcy is that the
industry did not support the initiative,? Lindsley said. ?I would say the
industry is paralyzed by fear of stepping out and competing with cable. I
don?t think the industry right now is prepared to do it.?
_______________________________________________
CONFIDENTIALITY NOTICE: Unless otherwise indicated or obvious from the
nature of the transmittal, the information contained in this e-mail message
and all attachments is confidential information intended for the use of the
individual or entity named above. If the reader of this message is not the
intended recipient, or the employee or agent responsible to deliver it to
the intended recipient, you are hereby notified that any dissemination,
distribution, copying or other use of this communication or its attachments
is strictly prohibited. If you have received this communication in error,
please notify the sender immediately by replying to this communication and
please delete it from your computer.
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at
FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word
unsubscribe in the subject line.
Other related posts: