SBCA: Satellite Television Subscribers Top 20 Million Mark; 1 in 5 Homes Now Receive TV Programming through Satellite Providers.

Entertainment Editors

ALEXANDRIA, Va.--(BUSINESS WIRE)--Aug. 20, 2003

The Satellite Broadcasting and Communications Association announced today that 20.36 million U.S. households - or one in five television households - now receive their television programming through direct broadcast satellite (DBS) television services, with the majority subscribing to the nation's leading providers, DIRECTV and DISH Network. The milestone illustrates how an industry less than a decade old has changed the way Americans watch television and has raised the bar in offering advanced technologies, innovative programming, competitive costs, and superior customer service.

DIRECTV's July second-quarter subscriber count of 11.56 million, combined with DISH Network's (EchoStar Corporation) second-quarter announcement of 8.8 million subscribers, reported last week, equals 20.36 million subscribers to the all-digital, nationwide services. With second-quarter additions of 270,000 net new subscribers for DISH Network (averaging 1.67 percent churn) and 181,000 net new subscribers for DIRECTV (averaging 1.5 percent churn), new subscribers to the services are increasing by approximately 5,011 per day. Churn rates reflect the percentage of customers who disconnect their services each month. By comparison, a recent McKinsey & Co. study estimated a 4-5 percent monthly churn rate for digital-cable customers.

In the first six months of 2003 the DBS industry had net additions of 1.01 million subscribers, while the top ten cable operators showed net losses of about 80,000 net basic subscribers, according to market research from the Leichtman Research Group of New Hampshire. In 2002 the DBS industry grew upwards of 13 percent, according to research by Banc of America Securities. This compares with an absence of growth among its cable competitors, as reported in a 2002 Federal Communications Commission's study on video competition. Analysts at SG Cowen and Banc of America Securities predict satellite subscriber growth to reach 30 million by the end of the decade.

Since its infancy the industry has sought to ensure that rural Americans living beyond the reach of cable and over-the-air television benefited from satellite technologies. Also contributing to the growing popularity and broader reach of DBS is the Satellite Home Viewer Improvement Act in 1999, which allows consumers to receive local network broadcast television programming. Currently, local packages reach 70 percent of the national television market, with plans to reach beyond 80 percent by the end of 2003.

The Satellite Broadcasting and Communications Association is the national trade organization representing all segments of the satellite industry. It is committed to expanding the utilization of satellite technology for the broadcast delivery of video, audio, data, music, voice, interactive, and broadband services. The SBCA is composed of DBS, C-band, broadband, satellite radio, and other satellite service providers, content providers, equipment manufacturers, distributors, retailers, encryption vendors, and national and regional distribution companies that make up the satellite services industry. Additional information can be found at www.sbca.com.

Note to editors: An unabridged version of this press release is available at: http://www.sbca.com/press/082003.htm