PanAmSat officials told analysts the MPEG-4 transition for FSS vi...
PanAmSat officials told analysts the MPEG-4 transition for FSS video distribution is still “a good 3 to 5 years out,” in a quarterly earnings call Wed. “None of our full-time transmissions are using MPEG-4 today,” said COO Jim Frownfelter:…
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“Where we are using it is in an experimental mode with some of our broadcast business on an ad hoc basis, as well as with foreign customers who provide MPEG-4 as part of on-demand programming.” About 33% of PanAmSat’s customers are still using analog, Frownfelter said. “The investment is really on both ends, and you've got to have customers willing to make the investment,” he said: “And we haven’t seen any significant movement in the U.S. toward MPEG-4 in terms of distribution.” PanAmSat CEO Joseph Wright said modulation technologies won’t soon affect historically long-term video customer contracts, averaging 8-9 years. “Whether they're using MPEG-4, MPEG-2 or analog, it’s basically one contract per transponder,” he said: “MPEG-4 is going to occur but from what our customers say, it’s not going to be as soon as everybody thinks it might.” PanAmSat reported $209.1 million revenue 3rd quarter, compared with $207 million a year earlier. Net income in the quarter rose to $54.2 million, vs. a $76 million loss for the prior year, officials said. PanAmSat’s video revenue rose $7.6 million over the 3rd quarter and govt. services revenue increased by $1.2 million, offset by a $3.8 million decrease in networked services revenue, they said.