The Price of 'Free-to-Air' Satellite TV

by Bruce Elbert, President Application Technology Strategy, Inc.

with Michelle Elbert

Satellite TV is the biggest money maker for the overall satellite industry, creating investment, subscriber base and wealth. It rests on the solid revenue footing from a food chain that ranges from the end user paying for subscriptions to networks that collect from advertisers and affiliates like TV stations and cable systems. However, we are witnessing a new business model that provides a free service to end users who only need to buy reception equipment consisting of a dish with a digital set-top-box. This is not unlike C-band backyard dishes of the US from the early 1980s, before HBO began to scramble their signal.