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Originally published June 21 2005

King of satellite TV Rupert Murdoch plans to give away 20 million digital recorders

by Mike Adams, the Health Ranger, NaturalNews Editor

Since there are not enough satellites to stream movies, Murdoch plans to digitally deliver movies and other programming from satellites to free customer digital home recorders in a digital delivery system.



Never underestimate Rupert Murdoch as a true visionary of the New Hollywood---or his power to uproot and reshape it. Back in 1983, when it was considered little more than a sci-fi pipe dream for man-made satellites to send high-definition movies to homes around the world, Murdoch was positioning an armada 22,300 miles above the earth. In 2003, he bought control of DirecTV---the largest provider of satellite television in America---which, along with his Sky TV in Europe and Latin America, and Star TV in Asia and the Antipodes, gave him some 40 million subscribers. Even before Murdoch completed his acquisition of DirecTV, he told financiers at Morgan Stanley's Global Media Conference that he planned to marry the satellites above with TiVo-like home recorders below, explaining that "every subscriber will be getting either a free digital video recorder or one for nominal amounts of money." Murdoch plans to digitally deliver movies and other programming from his satellites to home digital video recorders that would be the same quality, or higher (HDTV), than a DVD. Not only would it eliminate the manufacturing, warehousing, distribution, and return cost of DVDs, but it would cut out the video stores, which at present get about 40 percent of the rental money. This so-called "video window" is the result of a long-standing unwritten agreement among studios to delay the electronic delivery of movies for at least six weeks after video stores have had the opportunity to rent them. Because most people rent movies the week of their release---indeed, more than 80 percent of rental earnings comes in the first two weeks---most would-be renters have already seen a new release by the time the 45 days have elapsed.


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