General Instrument Has Pledged October and November

...- :' . . .-......

~~~~~==~======~====~= piige 2~=== VCII·PL·US TO PROTECT delay trom our (contlnued from page 1) announced June will aft&C1 my ability to service 8 intrOductIOn oate consumer's IRD? is desIgned to provide dealers A. No majorcha nge will be incorporated and their d!stri in the basic VldeoCipher II-Plus that butors and manu should afleet dealers and their ability tacturers time to to provide routine customer service. plan tor an order1y market transftion. The VideoCipher II-Plus support module will be electronically and Q. Will atl prodUct mechanically compatible with shipped after existing descrambler specifications. the "no sooner VCII-Plus will use the same socket than Septem. Mock-up of a possible conf'9lJr.l/on for the VidsoCiph9r /I·PIlJS and same form factor. The basic ber" date be slJppon module, with Insef19d seclJr;,y cartridge. VCII·Plus support module with the VldeoCtpher II security cartridge insened will torm a Plus only? unit that, as prevIously described, a. What about warranty, repair and will be compatible with existing A. The introduction of VideoCipher II· other Issues? descrambler specifications. Plus is likely to occur on a phased-in basis extending over September, A. We are s1ill working out details and General Instrument has pledged October and November. Beginning investigating options and will to provide manulacturers complete in December, we anticipate all mod· announce our decisions later on specifications for VCII-PluS at least ules delivered to licensed manu· these Issues, but forsee no major tour months prior to market facturers will be V811-Plus. Changes from current practices. introduclion. a. If this VideoClpher II-Plus Is JUst a. When wm Video-Cipher II-Plus be an enhancement, why Is there come 3vaHable to consumers?

A. We have told licensed manufa:turers A. SO:7le elements of the in:::lustry: 3ve tt-,at VO'·:>lus will be introouced no unfcli(.ma\ely used thiS 51;0·., Id sooner than Seplem~er '989. ThiS genera:lon product as a means to Q. Has a price been conlwse the dealer and consumer establIshed for for a variety of reasons VldeoClpher II· Plus? The simple lact is tha: VideoCipher II·Pius IS a second generation A. The VideoCipher prcouCl tr,at offers the potential lor II·Plus support fu~her gro .....1h of the industry as it module and sec moves into the nexl decade and will urhy cartridge will not impact existing lega! subscribers. be introduced at Most imponanlly. VideoCipher II· the same price as Plus provides a more secure the current Video tecr,nical base, With this Cipher II module. enhancement to security, movie This action is de studios, distributors and program· signed to facilitate mers of1ering movies, special events an orderly market and s;:>OriS will be encouraged to introduction and serve the TVRO market and look to assist licensees in TV?~ 2S an opportunity to expand making their 1989 the in~crmalion and entenainment Mock·up ofBsupport module andinssr:able securitycanJidge that may be a possible configuration for Vid90Cipher II-Plus. business plans. bwsinesses. -..: ~eneral/nstrU!!lent Corp:s the company's standard one year parts GENERAL VideoCi her Division will extend from and labor warranty. one year to five years I s parts and In addition, the Division's Service INSTRUMENT labor warranty on the Super 2750R Trip Compensation (STC) program, and 2730R IRD lintegrated receiver! which assists authorized dealers and ~escrambler) models.,shipped to U.S. technicians involved in repair and _

Turner Broadcasting System, Inc. CNN has ample Ku-band capacity for ITBSj, the parent company of CNN, the Satellite News Gathering (SNGj has signed a contract with GTE· needs of its broadcast affiliates and its Spacenet to be the principal tenant on domestic bureaus for the foreseeable GTE Spacenet's new Ku-band satellite, future," said Wes Hanemayer, TBS vice GSTAR 'v. planned for launch later this president of satellite systems. "GSTAR year. With 16 additional transponders, IV will be located at 125 degrees west this satellite will assist in relieving some longitude. Galaxy V, the principal of the problems caused by a cable programming satellite operating diminishing inventory of Ku-band at C-band, will be co-located there. transponders. TBS has committed to Therefore, TBS will also be able to use use at least three transponders on the some of the transponder capaCity on new satellite, which will further GSTAR IV for future programming augment the three Ku-band transmissions to cable systems transponders used by TBS since eqUipped in their Galaxy V antennas September 1989 on GSTAR II. with ClKu feedhorns." "This new satellite will assure that

Netlink's new headquarters will be priority. Netlink personnel began located in the Denver Technological occupying the new headquarters in Center in Englewood, Colo. The new early May. with the entire team moved 23,OOO-square-foot facility will and settled in the Denver area by accommodate the combined June. operations of Netlink IKirkland, Wash.), - Netlink operations has announced Tempo Enterprises ITulsa, Okla. and that its uplink of the WGN Atlanta, Ga.) and TCI Satellite Services programming signal IF '-201, has been Center IBothell, WaSh.), which enhanced with the completed consolidated operations under the installation and turn-up of permanent Netlink banner in January. transmission service. The new system, The facility. located at Orchard installed by Midwestern Relay Place V. will be the new home for 40 Company IMRC) includes a new 9.2 relocating employees, plus an meter antenna, automatic protection additional 150 employees who will be for power source and transmission added immediately after the relocation. equipment, a direct broadcast feed Netlink eventually expects to have from WGN's studio and generator about 200 personnel at the baCkup. Performance tests conducted headquarters, the majority assigned to by American Microwave showed custonier and dealer services, the significant signal improvement. areas which have received the highest

fIII!II page 36 rt:---~----- pay-per-view update SBCA Opposes jewelry, electr, USA Direct aI, further delay in the upgrading of Superstatlon Blackouts gram that pn • pay-per-view services to the Vid The Satellite Broadcasting and • unique mercha · ". eoCipher II Plus is expected, Communications Association pricing and pr, since Graff Pay-Per-View's Spice, Drive-In •.filed comments October 5 before able exclusivel\ Cinema and newly acquired Cable Video the Federal Communications Commis On-air hosts'. Store are not anticipated to upgrade to sion opposing cable blackouts for Major ment were forn the VC " Plus unlillate December or Jan League Baseball games. Value Network. uary at the latest. The initial schedule for Major League Baseball has petitioned the upgrade was September 1990. the FCC to permit exclusive broadcast of PrimeTlm Viewer's Choice I, Viewer's Choice 2, baseball games under the network non Club prim Satellite Sports Network and Action TV duplication rules. It would require cable primel (Night Action) are slated to remain on operators to blackout the distant signal Prime'] VideoCipher " tier bits in order to con telecast of a baseball game if the local •...' PrimeTI tinue to serve their current market. Re broadcaster had acquired exclusive rights quest TV is expected to go immediately to that game. Using KPLR-TV (S1. Louis, a 15-channel pr to VC " Plus upon launch, perhaps as Mo.) as an example, MLB proposed that a free coupon soon as January. S1. Louis cable systems blackout Cardinal chandise and SI A meeting scheduled between Grs Sat games carried on superstations. Club PrimeTimt ellite Service Center and pay-per-view The SBCA opposed MLB's request be PrimeTime i programmers took place in mid cause it could affect home satellite dish said, "Starting \ November to establish uniform standards owners who rely solely on satellite sys package at con for the pay-per-view segment of the sat tems for news and entertainment. Accord nual rates, Club ellite industry. Developments of the ing to the comments filed, the "SBCA vide more of tf meeting were not available at press time. fears that superstations which carry base the satellite COl emphasis on ( ball games which would be blacked out 'sports Form' to may elect to discontinue carriage of those PrimeTime is m games on a national basis and replace to buy favorite Debut on Graff PPV has been listen' them with other programming not subject "Sports Form of Las Vegas;' of- to exclusivity requirements." home satellite (' · fering pro football fans, live, up- ers for more th, • SBCA's filing also highlighted technical o to-the-minute analysis from problems in selectively blacking out Time is the re premiere sports handicappers, will debut lVRO systems. It said, "At the present Combined with on Graff Pay-Per-View's Cable Video time, program deletion can only be imple PrimeTime cou we are providi Store and Drive-In Cinema on Sunday, mented by today's 3-digit zip code basis. that complem( December 2, 10 a.m. Distributed by The Thus many consumers in an area wider Event Network, the suggested retail price than the blacked out area would be ad ment value of t! Club PrimeTi for each weekly "Sports Form" show is versely affected by the [Federal Commun $9.95, it will be available via VideoCi ications) Commission requirement." Time 24, whic television to ur pher II Plus and Videopal. The SBCA comments went on to men PrimeTime 24 Every Sunday morning for the balance tion the ease with which zip code syndex York); WXIA (N of the 1990-91 NFL season, "Sports blackouts could be circumvented. The Chicago) to hor Form" will originate from the Sports SBCA closed its comments, requesting the Form sportsbook in Las Vegas. Hosted by Commission to deny the MLB petition. ble television Bob Gamere, it will use the knowledge well as pay-per- and skill of two well-known handicap USA Direct to The Club Pr pers, Michael "Roxy" Roxborough and are: PrimeTin John Bennett, as well as other experts. TVRO Shoppers WXIA); CNN; II Each "Sports Form" show will feature USA Direct, a home shopping work; The N; a previe~ of NFL games that week, service aimed exclusively to the Weather Chanr weather c~)llditions at game sites, injury • .. TVRO market, began broadcast- Prime Network updates, latest lines from Las Vegas, ing its pilot service on T2I17 in Odober. WPIX; and KT\ coach and player profiles, and plays of Initially, the new shopping service was Cinemax, The [ the week. on the air four hours a day but effective lite Sports Net .... The Event Network is a six-member November 23, it expanded its air time on The Club Pr partnership Iormed in June, 1990, to pro weekends to 11 a.m. to 11 p.m. (E) as well package inclue! duce, promote and distribute pay-per as its regular 7 to 11 p.m. (E) broadcast a month or $14 view sPOTts and entertainment weekday evenings. tion charge. HD programming'l Offering a blend of products including· ney Channel an \ Page 40 • TVRO • DECEMBER / ----

April 25, 1991

Dear SVC Customer: "(''~~".. / Several times dUring the past few months. Satellite Video Center has notified you of an offer to upgrade your satellite system to VideoCiphel® II Plus technology FREE OF CHARGE ~.l i through the SVC Product Evaluation Program (PEP). Our records indicate that, to date, we have . . ® either had no response from you, or you have received a VCII PluS® module but have never authorized it. If you have recently authorized a PEP module and/or returned a VCII module to sVC SVC, please disregard this letter.

This letter is to inform you that the Product Evaluation Program will end May 15, 1991. the This Is your last opponunlty to participate and receive a VldeoCipher " Plus modUle FREE OF CHARGE. No PEP requests or authorizations will be honored after May 15. satellite 1991.

Video Please call SVC (1-800-548-4336) before May 15 to take advantage of this free upgrade offer. It is to your benefit to participate in the PEP program for several important reasons: Center® 1) Many current SVC pay-per-view programmers and several new pay-per-view services, such as the TVN Tenplex service launched April 15 and others that will soon join us, are using the VideoCipher II Plus technology exclusively. Without a VCII Plus module, you are unable to receive this great programming, which includes more of the latest hit movies and spectacular special events.

2) Many subscription programming services have indicated that they plan to transmit only in VideoCipher II Plus in the near future. This decision will require you to upgrade your system in order to continue receiving subscription and scrambled programming.

3) After May 15, 1991 should you wish to upgrade your system to VideoCipher II Plus through the General Instrument upgrade program, you will have to pay at least $199 for the module, plus shipping and dealer service charges. You will also be required to first submit your old, untampered module and wait several days for a new module to be shipped, leaving you without TV in the interim period. With the SVC PEP program, however, you receive the new VCII Plus module upfront and do not send in your old module until after the module exchange. Your TV viewing is not interrupted for a lengthy period.

4) Through the PEP program, Y£Y will receive a module that is Jujly covereQ..bY the General Instrument Consumer Security Protection Program, which protects you a~ainst h~9 to replace the module during the next three years should programmers switc _ to a !9beLIEtv_~L _oL __ VideoCipher II Plus scrambling technology for security reasons. The Consumer Security Protection Progra,m only covers modules ,!!1anufact~~<:l gftf:lr_Aprii 1, 1991, which you, as a new PEP participant, Will receive. This is an added value to an outstanding offer that we recommend you consider.

Enclosed you will find a letter and compensation form that are to be given to a satellite dealer should you choose to have one perform the module exchange for you. Some of our customers ''\It.lo...... have chosen to perforrn the module exchange themselves. Should you need the name of a ~~ ~.~~ local dealer who can perform a module exchange, simply mention that you need a dealer l>o ~ q f ~ recommendation when calling the Satellite Video Center to notify us of your desire to participate in the PEP program. Once again, this is your last chance to consider this outstanding offer. We

V\o u.t.\ A CI encourage you to do so. Call the Satellite Video Center today! ~.., ~ U'-I'-'I'I' ~~_ Sincerely, ~., y/) j~(.~ ~~ fb;&(.tA ' ~- r_ nl~- Esther L. Rodri ez "-- VJ , _~ General Manager, Chief Operating ~~o~ Ene. ~ f~1 ':0140 Barnes Canyon Rood. Son Diego. CA 92121 • (619) 450-1702. FAX (619) 450-9128 ~ S,~-91 fut: C~ho,e.f--91-0lS-qS-

Dear Satellite Retailer:

As you may recall, last August the Satellite Video Center (SVC) began offering its customers a FREE VideoCipher® \I Plus module exchange through the General Instrument Product Evaluation Program (PEP). This offer has been extended only to SVC customers who purchased their stand-alone VIDEOpaKID system or Super 2750 IRD prior to May 21, 1990. Sotellite Please be aware that the PEP Program ends May 15, 1991.

Video SVC will instruct its customers who have not yet taken advantage of this offer to contact their satellite retailer to exchange the new VCII PluS® module we are sending to their home for the center® VideoCipher II module currently installed in their system. If a Satellite Video Center customer asks you to perform a module exchange, you will be compensated by General Instrument for exchanging the modules and for authorizing the new VCII Plus module through SVC and the consumer's subscription programmers. The maximum compensation rate will be $40.00; however. many dealers have already committed to service trip compensation as low as $15.00 for this program. They realize that General Instrument is contributing the module and they are simply interested in covering their costs. Your contribution to this effort to eliminate piracy is appreciated.

This compensation is not part of the on-going General Instrument Service Trip Compensation (STC) program for in-warranty equipment (you may also be a participant in the STC program). Enclosed you will find a compensation form. Should you be asked to perform a module exchange. please make a copy of the form for each VIDEOpal consumer that you assist in the PEP program. You will note that both the Installer's and consumer's signature Is required. The owner or manager of the retail store should fill in the amount of compensation required.

Please send completed compensation forms before May 31.1991 to: PEP Coordinator. General Instrument, 6262 Lusk Blvd., San Diego, CA, 92121. Your compensation payment will be made promptly. Compensation forms received after May 31 will not be honored. Each form will be treated as an invoice and the "invoice number" will be the VideoCipher II unit address. This should assist in tracking payment. If you have any questions about compensation, please call 619-535-2888 or 2570. Along with the module, each consumer will receive a pre-paid Federal Express Airbill to return the module to General Instrument. The consumer is being asked to insert the old module in the ESD bag; slip the bag into the box that the VCII Plus module came in; and call Federal Express at 1-800-238-5355 to pick up the old module.

Thank you for your continued support. The PEP program is a first step in enhancing the security of satellite systems. Security is the key that will ensure the success and continuation of our industry. incerel ~~a: ~~, . jz her L.. Rodr' uez General Manager. Chie Operating ficer

10140 Barnes Canyon Rood. San Diego. ~ (~50-1702. FAX (619) 450-9128 ~ $';3"11 P-t{: C~no,-Qf~91-0i~S Product Evaluation Program Installation Confirmation & Compensation Form

Dealership:

Dealer 10:

Address:

Phone:

Consumer name:

Address:

Phone:

VC2 UlA

VC2+ UlA

VIDEOpal Serial Number or Super 2750 Serial Number

Date of VC2+ installation:

Installer's Signature:

Consumer's Signature:

Compensation Rate:

Return completed forms to:

PEP Coordinator General Instrument 6262 Lusk Blvd. San Diego, CA 92121 JU1e 1, 1990

Dear Satellite Video Center Customer:

This letter Is to thank you on behalf of SVC am Its affiliated programmers for your business. I'd also like to take this opportmlty to reiterate our commitment to serving you with the hl{t1est Qjallty and best choice of pay-per-vlew v (' programming In America. As you may be aware, the VlcleoCipher II(R) scranbllng system has been UXlated with a new vers 100, the VC II PJus(tm). VCII Plus offers advanced Slglal security against piracy, vtllch Is of great concern to progralll1l6rs and movie stlllios. sve Is committed to beIng responsive to their concerns so as to ensure a cootlrued ~Jy of programming am, by ~rtlng the more secure VCII Plus tectnology, new prOQrammlng services can be added for your enjoyment.

As an SVC preferred customer, we would lU

Over the next four mooths, we will make arrangements with local satellite service dealers and retail organizations natloowlde to tpgrade, with mlnimun Incoovenlence, SVC customers' satellite systems to VCII Plus. The servloe call will be haOOled at no oost to )'00. We 1'1111 notify you of the authorized dealer In your area. However, If you have a dealer with Yltlom you prefer to do rosiness, we may be able to lIlake arrangements for that dealer to ~Iete the eXchange. There Is no need to call SVC now - we 1'1111 call you I'Itlen you are scheclJled to be lPQraded within the next few IIIOOths.

You may also be aware that since May 21, 1900 new customers buying a VldeoPal may only autoorlze It with a VCII Plus system. ~ )'00 already OWl a Vldeq)al systel aM have an acco.nt with SVC, yw will WIthe to enpy access to all pay PEi=vJeW-prO{i-t(j serviceS)'OO row receive. Future PPV programming services, however, 1'1111 use VCII Plus exclusively. Therefore, we encourage you to accept our 'Tree lq}rade offer.

In addition to the General Instrunent-sPQnsored PEP Program, there may be other similar wgrade programs sponsored by Independent programming distributors, such as American Programming Service. Regardless of the program In vtllch you choose to participate, and of any statements made by these entities regarding your cootlflJ6d access to pay-par-view programmIng, we'd like to emphasize the following:

1. All major movie studios, including Warner Brothers, are currently prOViding prOOJct to the TVRO market through the programming services offered by Satellite Video Center.

2. Currently, all SVC programmers are serving both VCII and VCII Plus customers. 01ce your system Is lqIraded through the PEP program mentioned above, you 1'1111 cootlnue to receive the pay-par-view programming you now receive, plus any new services that may be added to the SVC II~.

We look forward to your participation In the Pro

Sincerely, ~ ~~~ Acting General Manager/C.O.O.

P.S. We have enclosed the ~ Issue of the Satellite Pay-Per-Vlew guide for your convenience. Please be aware that your free Introductory sltlscrlptlon to the guide has expired. For a limited time, SVC Is offering a one-year sLtlscrlptloo to the guide for only $9.00 -- a 55% dlsCOlllt off the $19.95 sltlscrlptlon fee. To take advantage of this special offer, please call Satellite Video Center at 1-S00-54-VIDEO. Satellite Watch New. I December 1990

Notes From The Satellite Underground

to facillitate fast installation. The need for use of the computer Hong Kong Bans Satellite modem indicates that the necessary Subscription Fees information was not extracted till the The Hong Kong government has last minute, thus preventing bogus barred home satellite programmers information from being extracted from collecting SUbscription fees. from the clone master. The Hong Kong Cable Communica Unfortunately, the average dish tions, a start up cable TV company, owner was not offered access to the partially owned by U.S. West Inc., fight, through the VCII, as many complained that allOWing Hutch thousands of potential viewers Vision, a diretct-to-home satellite wanted to purchase the event. Sor broadcast service, to begin program ces say that over 14,000 phone re ming, its service would contravene quests were made to programmers Two In Texas Indicted For Piracy (i.e. contradict, hinder, oppose) the in an attempt to purchase the event. cable companies exclusive service. T wei Texas satellite dealers were in HutchVision said It wasn't worried dicted September 28th for satellite Services Chan e to veil + by the governments decision, as the TV piracy. As of press time, Spice and Drive Hong Kong market was just a small John Nunn, owner of a Cleveland, in-Cinema are the only two U.S. ser part of the overall area they Intend Texas dealership and an employee, vices to have changed to the VCII + to serve. Glenn Gauthier allegedly modified for residental decoders. They are Now, If we could just get the Hong and sold Videoclpher modules. currently addressing the VCII and Kong government to rule on our Each have a 15 count indictment VCII + data streams. the VCII is only programmers , Ed facing them. Each of the men are for the remaining commercial units charged with one count of con and the VCII + is for the home Things Are Quiet With The 'SUN' spiracy to sell illegal chips and 14 I market. The VCII addressing will counts of selling modified modules. \ only be In effect till the commercial The SUN decoder, featured in the All the charges except four are units have been upgraded to VCII + November Issue of SWN, has been felonies. This stems from the fact units. reported to have some quality con that four of the charges of illegal This information is for you folks, trol problems. chip sales are prior to the change with chips, that have called and It seems that some units shipped from a misdemeanor to a felony In were wondering why you were get do not work in some of the IRD's. 1989. ting a picture and no sound on We at SWN, expected the SUN The MPAA and FBI began an inves those two services Ed decoder to make a big hit with the in tigation of the dealership in April Late Note: Cable Video Store dustry and 'force some hands', but 1988, which led to the raid on switched to the VCII + data stream as of press time, there has been no February 8. 1989. on 11/26. Action PPV Is scheduled words from John Grayson and the A warrant has been issued for the to changed to the VCII + shortly. people at Dectec. arrest of John Nunn and Glenn As they say in Indiana Jones, Gauthier. CVS & Spice May Move ''The Adventure Continues !" More on B-MAC Chips Graff PPV, owners of Drive-in Cinema. Spice and Cable Video The October 25th, Douglas Store, appear to have an offer on Holyfield fight was viewed by many the table to buy Guest Cinema. In the U.S. and Canada on cloned Guest Cinema is owned by Reiss SA B-MAC decoders. Media and serves the hotel/motel Apparently the underground ac marketplace. If the deal follows quired an authorized unit, one of through, Graff will replace the Guest many distributed to cable operators, Cinema service with It's own and copied the authorization informa programming. This may move CVS tion. Once the information was from G3-5 to F4-4 (currently oc copied, clone chips were made to In cupied by Guest Cinema). Spice stall in B-MAC decoders and informa may move from G2-15 to F4-18 tion was transmitted, via computer (Guest's other slot). Drive-in-Cinema modem to other areas of the country will most likely remain on G2-21.

Page 10 • u~st:w~~~~fl~) \~ ()~

Pay-Per-View on January 4 or the the pay TV market could be an unfair -e" "New Kids On The Block" concert last detriment to the pay- per-view arena. it March. It's big name entertainment However, 1991 should see industry 'or right at your fingertips and, most im growth with TVN, Prime Star, and lY portantly - it's current! SkyPix slated to launch pay-per-view u Besides, there is a definite novelty services. Good news for viewers look re, about the whole pay-per-view system ingto rub elbows withthearena crowd ce, that's hard to resist. It's instant via their easy chairs. • >n, er he re, ial

en els jor for LpS .dy .on Be m nb nt. Ir's ::es 1ly de led ea ion )a old Iso ler :ky ied I to j " ~ ,.,.------iiiii--1~ I ,'DEQCIPHEROII i------~---_· ....B4D8 SATELLITE DESCRAMBLER ' INSTALLATION AND OPERATION MANUAL COVER PAGE

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C:J-t ~h~ r9~J _el6fi-lL- \9~~

- ,

'. Purchasing Prograrns

Some program suppliers may offer special event broadcasts, called pay-per-view, in addition to the subscription programs that you're authorized to receive. Only the c~rrent and next programs can be purchased. There are two ways to purchase programs: by calling the program distributor for each ev~nt or by purchasing credHs that are placed in an account balance for you to spend at a later date. (The procedure Will vary with each program supplier.) Three additional functions operate when pay-per-view broadcasts are offered by the program supplier: Purchase Password, Credit Display, and Purchase History. (If your program supplier offers pay-per-view programs, these features will appear on the display when the ISET upi key is pressed.) Purchase Password lets you control program purchases with your own password;Credit Display lets you check your current account balance; and Purchase History shows you which programs you've purchased.

If the Program Purchase display appears when the IVIEW) Checking Your Account Balance or [NEXT PR§J key is pressed, the program must be \ . purchased. 1. Press ISETUP] , then rn. A display like the following will appear on your television screen:

:\ ~! .1 I. i To purchase the program, press I ENTER I, and follow .~ the instructions on the next display. You may nee~ lo change the Rating Ceiling if the program is locked -lut. You will also be required to enter the purchase pas',word The amol pt fisted next to CREDIT is your account if one has been set. balancE" lhe code following CREDIT VERIFICATION proter.,s your balance and may be of use to your Press [fNT~ to confirm your purchase. If you (Jon't proyrarn supplier. want to purchase the program, press IVIEwl. You may tune to another channel during a pay-per-view Checking Purchase History ~hcv: viahcut losing your purchase: but the first ~~)gr~ill is cancelled if you purchase another current program Purchase history will list the 14 most recently purchased before the first program ends. programs. The arrow keys advance through the Iisl of purchased programs.

Setting a Purchase Password. 1. Press ISETUpl ' then m. Each display lists two purchased programs. Use the arrow keys to advance ~. 1. Press ISETUpl then If a passworJ has been set,' through the displays. you will have to enter it before you cariselect a new . password. ' .. 1 2. To set a password, use the numeric keys to enter a If you forget your password .. . code. The code can be one to eigh'Jdigits long. If you forget your password, you'll have to contact you: 3. To remove a password, just press fENTERI without program supplier or program distributor. selecting any numbers.

15 / CVS, Drive-In, Spice .nake transition to VCII PIUS™ Only.

In an effort to eliminate un Plus technology are Request Iand 11. authorized theft ofsatellite signals. scheduled foraJanuary, 1991 launch. Graff Pay Per View, which oper ~ "lI'e a{'plalld Grc~rr S slep in beco/ll ates three pay-per-view channels. t:=::lIo ing the firsl SI'C I'rngr(1/lI/ner to has announced that it will be the albleVideo Store lJroadcasl \'ia Ihe nell' I 'C11 PIllS first Satellite Video Cenler pro I\'\h a "lIltlln Relit a Illlllie ' I('chllology," said Esther Rodriguez. grammer to make the transition to 'This is a major step toward Ihe VClI Plusn' -only descrambling t('chnolo . The c!imillolion of piracy. I\'hich harms ereryolle ;11 transition is being made this month. With Graff's the indu"fI)'. We encourage other paY-l'er-ricl!' transItion to VCII Plus, on y those customers l'rogramTllers 10 do Ihe same, which will ena"'e us who have upgraded to or purchased VClI Plus to e.\/,and our offerings and enhance SI'C 1'1'0 equlppC

PEP Ilrogram to be Completed this Month.

The SVC Product Evaluation Program. which as a reward for filling out a brief product evalu provides VlDEOpal" customers with a free VCII ation questionnaire. PEP participants are as Plus module is scheduled to end on December I. signed to a local satellite dealer who will install 1990. Ifyou arc among the customers \\iho author Ihe new module, also free of charge. Customers ized their VIDEOpal systcm hefore t\lay 21. 1990 Ilwy speci fy the dealer they prefer 10 complete the and have not yet made arrangemenls to participate exchange. in the PEP program, orhave received your module All VI DEOI'al customers authorized prior to but have not completed the VClI to VClI Plus t\ lay 21. 1990. who have not yet enrolled in the module exchange. we ask you to do so immedi PEP program should coni act the Satellite Video ately. Cenler, 1-800-54-VIDEO (1-800-548-4336) im This will ensure that you will continue to mediately. For yourconvenicnce during th@r) receive all current services, as well as all new serv program. SVC Customer Service Cenler hours ices scheduled to launch to the instant pay-per have heen extended to Mon-Fri. 6 a.m.'to9 p.m.; view market very soon. Sat. 7 a.l1\. to 8 p.m., Pacific Time and personnel Through the PEP program, customers receive added to assist you. a VCIl Plus module, a $350 value, free ofcharge And installing it is as easy as 1,2,3. Just con Convenient. Small. nect the VIDEO al to our VideoClP-her® J!JRQ~. And ASnap To Install. or escramb er, plug its te ephone line to a tele phone jack and attach the AC power adapter. What APal. What could be simpler? Like any good friend, your VIDEOpal won't But the best aspect ofyour VIDEOpal is that get in the way - it's it introduces you to the hottest programming around J at the push ofa button. With pay-per- roughly the size ofa view channels like these . . .. / remote control. listed below. And more VIDEOpa TM to come. Order Recorder

Tap into the sports events you've always wanted to see. SSN brings you live Major League Baseball, NHL and NBA games, professional wrestling, boxing, golf, tennis and co\lege sports. Plus informative sports talk shows. Every -SATELLITESPORTS NETWORKS thing a sports fan could hope for.

See the newest movies and exciting specials, with over 25 titles each month, available 24 hours a day. And two great channels to choose from.

Get the latest box offIce hit movies, available every night l'Il!Sll)U~ during prime time. Over a dozen new titles every month, in the convenience of your home.

Push a bUlton, rent a movie®. With Hollywood's greatest hits ~ available 24 hours a day, you can choose from over 30 movies ~ CableVideo Store and special events shown each month. \'\"h a hunnn. Renl " 1l1<~·ic.~ A,»-.OIdSr'looo(l!'

"The Romance Channel" brings you nightly adult entertain ment from7:30p.m.to6:30a.m. EST. Putting plenty of love and romance just a heartbeat away from you a\l night long.

Bring home the Drive-In Cinema for all the thrills, night mares, excitement and laughs with the action/adventure, horror, sci-f. and comedy movies you rea/lywant to see.

Don't belate for your Rendezvous where fun and fantasy meet. It's 12 fu\l hours ofthe hottest, sexiest, sassiest adult entertainment around.

I":CI\.II:DA I v:J.,EOpar

Instant Pay-Per-View e»rder Recorder for Use with Home Sa.e llite Systems

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195-1 Rev.2 VideoCipher Division 12/88 Technical Service Dept. GENERAL P.O. Box 700 IN~RUMENf Hickory, NC 28603 Using This Manual

ITE: Please fill out the enclosed Warranty If you have any questions about your telephone This Manual contains the detailed instructions for installing and using rd and return it to General Instrument. This line, such as how many pieces of equipment you your new VIDEOpa!'· Order Recorder. Use this manual when you install I simplify processing if any warranty repairs can connect to it, your telephone company come necessary. should prOVide this infurmation upon request: the system, and save it for later reference.

ogramming Copyright Notice In certain circumstances, it may be n€cessary for l tellite signals originate from a variety of your telephone company to request infO«T1ation 1 Included in this manual is a Pre-Installation Checklist. which will help urces and program suppliers. Some of these from you concerning the equipment whic~, you or your installer prepare your satellite system for the VIDEOpal unit. Inals may be proprietary and intended for have connected to your telephone line. Upon~' J.~ Please complete it before you install the unit. If properly installed, the :eption only by approved subscribers or request of your telephone company, provide the oscription services. General Instrument FCC registration number and the ringer equiva , / VIDEOpal device should not adversely affect any aspect of your home sumes no responsibility for the use of home lence number (REN) of the equipment which is :,\ satellite system's operation. RO systems by the purchaser of this device. connected to your line; both of these items are "1" . e Federal Communications Commission has listed on the equipment lab~1. The sum of allll;e '1\ ggested that all TVRO manufacturers REN's on your telephone lines should be less ',I . NOTE: This device is NOT compatible with most MIA-Com 2000E mmunicate to their customers the following than five in order to assure proper service from ~ licy statement: your telephone company. In some cases, a sum '1 Descramblers (VideoCipher® II module firmware version 3.0 or higher is of five may not be usable on a given line. J; required - see page 20 for details.) se of this device may violate Section 605 of the ( Immunications Act of 1934. as amended, If Problems Arise I ough the unauthOrized interception and If any of your telephone equipment IS not Table of Contents lulgence of radio communications; or, the use operating properly, you should immediately radio communications for one's own benefit remove it from your telephone line, as it mrty Your Home TVRO System ...•...•••...... •..•3 lere the:e is no entitlement to its receipt:" cause harm to the telephone network. If your telephone company notes a problem, they may The VIDEOpal Order Recorder .•.•.•••••...... •.•4 sale of signals received from broadcast temporarily discontinue service. When practical, Front and Back Panel .,..,,...... 5 tellites is explicitly regulated. In any use or they will notify you in advance of this disconnec plication involving resale or distribution, the tion. If advance notice is not feasible, you should Pre-Installation Check List ,_,.., 6 er should verify compliance with current laws, be notified as soon as possible. When you are VIDEOpallnstallation ...... •.....•...•.•.•7 ~ulations, and approved procedures for use. notified, you should be given the opportunity to VIDEOpal and Your Telephone System ,.,,, 7 lere required, local and federal licensing or correct the problem and informed of your nghtto nchise authorization is the sole responsibility of file a complaint wittlthe..FCCC. _ VIDEOpal and Your Satellite System...... ,, ... , 11 ~ user. AuthoriZing The VIDEOpal ...... ,...... • 12 In the event repairs are ever needed on your Using The VIDEOpal ...... _..•...... 13 :C-Required Notification VIDEOpal unit, they must be performed by 'pe of Service General Instrument Corporation. Troubleshooting. ..•...... •...... ••. 16 lur VIDEOpal unit is designed to be used on Getting Help...... •_..•..•••.. .17 ,ndard device telephone lines. The VIDEOpal & Innects to the telephone line by means of a Questions Answers .....•...... ••..•...... 18 mdard jack called the USOC RJ 11 C. Connec Specifications...... •....•..•....• 20 n to telephone company-provided coin service Important Telephone Numbers...... •.•.••. .•..... 21 entral office implemented systems) is prohib ,d. Connection to party lines service is subject State tariffs.

~Iephone Company Procedures order for your telephone company to provide ,rvice to you, it may occasionally be necessary ~~r r them to make changes in their equipment, lerations, or procedures. If these changes © 1988 Cable/Home Communication Corp. ~,.~f ,j~r,l ight affect your service or the operation of your All rights reserved luipment, the telephone company should give , ) \~.i(c;v VldeoCipher" IS a registered Irademark of General /y. 'u notice, in writing, to allow you to make any lnstrument CorporatIon \. .(p \ \l.><, \anges necessary to maintain uninterrupted VIDEOpal" IS a trademark of General Instrument '( ,{ .J. Corporation. X'J ~rvice. \ \JyV ,~ r.,/··j )l us. Patent NO'5 4.608,456: 4,613.901: 4.634.808: 'oj- \;\J 4.712,238 and patents pending ~. d. Brevete 1987: patented 1987. 1 1 Specifications Important Telephone Numbers

Physical/Environmental VIDEOpal NideoCipher'" \I " The Satellite Video Center Temperature 0 to 40° C Compatibility 800-S4-VIDEO Humidity Up to 95% relative The VIDEOpal Order Recorder is compatible only with VideoCipher II i General Instrument Dimensions 8-1/2" Lx 3-1/8" W module firmware version 3.0 or higher. r ~q/f33& Consumer Hotline x1-1/4"H For this reason, it may not function l 800-845-2748 Weight 1 pound (approx.) with certain MIA-COM 2000E De 0_) ~, ~5lf VIDEOpal~ Power Input (to 115V ±10% AC scramblers. -. o/jJJ Dealer AC power adapter) 5WNominal '. To determine if your 2000E Descram ,'" Power Input (to 9VDC, 350 mA I bier has the required VideoCipher II t VIDEOpal'") module, perform the following steps: J' 'I' Please write your VIDEOpal'" Order Recorder serial number (found on the bottom panel) and 1) Tune your satellite system to a your VideoCipher' II Descrambler unit address VideoCipher 11 channel. number in the spaces below. You will need them if you call General Instrument for service or The Satellite Video Center'" for programming. 2) Press the [SETUPJ and [OJ keys on the front panel keypad. Your TV VIDEOpal Serial Number _ screen should appear similar to that VideoC,pher II Unit pictured below. ~' Address Number _

DIAGNOSTIC DATA

F8EE 56D4 6000 F5 0003 0000 3415 0266 8776 02 2BA5 93 01 00 SA 01B2503

3) If the line under "DIAGNOSTIC DATA" does not indicate "V3.0" (or a higher number) it will be necessary to contact the General Instrument Consumer Hotline at 800-845-2748.

20 1 21 1 VIDEOpO) ,p.., ~f. Order Recorder \ fl> ~r !~'01 . .~-;'i ~- ,;".; Instant Pay-Per-View 1 ~\ Order Recorder I, . For use with i VideoCiphe~ II Plus ' equipped home satellite f '---.' systems \ \ V'

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GENERAL INSIRUMENT ~ ~

Publication #74148-1 Rev. A VideoCipher Division' Printed in USA 5{90 Technical Service Dept. GENERAL P.O. Box 700 INSIRUMENf Hickory, NC 28603 Using This Man\.\

NOTE: PI_fln outthe enclosed Warranty If you have any questions about your telephone This Manual contains the detailed instructions for installing and using \ Card and retum Itto Genend Instrument. This line. such as how many pieces of equipment you your new VIDEOpaleOrder Recorder. Use this manual when you install ': will simplify processing If any WIImInty repairs can connect to it. your telephone company become necessary. should provide this information upon request. the system, and save it for later reference.

ProgI'IImrnlng CopyrIght NotIce In certain circumstances. it may be necessary fOf' Included in this manual is a Pre-Installation Checklist. which will help satellite signals originate from a variety of your telephone company to request information sources and program suppliers. Some of these from you concerning the equipment which you you or your installer prepare your satellite system for the VIDEOpal unit. signals may be proprietary and intended for have connected to your telephone line. Upon Please complete it before you install the unit. When properly installed, reception only by approved subscribers Of' request of your telephone COf'npany. provide the the VIDEOpal device should not adversely affect any aspect of your subscription services. General Instrument FCC registration number and the ringer equiva assumes no responsibility for the use of hOf'ne lence number (REN) of the equipment which is home satellite system's operation. iVRO systems by the purchaser of tIlis device. connected to your iine: both of these items are The Federal COf'nmunications COf'nmission has listed on the equipment label. The sum of all the suggested tIlat all lVRC manufacturers REN's on your telephone lines should be less Protect Your Pocketbook! Please see "Purchase Password Recommen cOf'nmUnicate to their custOf'ners the following than five in order to assure proper service from policy statement: your telephone company. In some cases. a sum dations· on page 24 prior to using your VIDEOpal Order Recorder. of fIVe may not be usable on a given line. The ·Use of this device may violate Section 605 of the REM of the VIDEOpal Order Recorder Is 0.48. COf'nmUnications Act of 1934. as amended. The VIDEOpal Order Recorder is intended to work only with Video through the unauthorized interception and If Problems Arlse diwlgence of radio cOf'nmUnications: Of'. the use Ciphe~ If any of your telephone equipment is not II Plus (VCII Plus™) equipped sateffite descramblers or inte of radio COf'nmUnications for one's own benefit operating properly. you should immediately grated receiver descramblers. Therefore, it is important to know where there is no entitlement to its receipt· remove it from your telephone line. as it may whether you have a VideoCipher II or a VideoCipher 11 Plus IRD or cause harm to the telephone network. If your Resale of signals received from broadcast telephone company notes a prOblem. they may descrambler. See page 5 to determine which type of home satellite satellites is explicitly regulated. In any use or temporarily discontinue service. When practiCal. ~ system you own. application involving resale Of' distribution. the they will notify you in advance of this disconnec user should verify compliance with current laws. tion. If advance notice is not feasible. you should regulations. and approved procedures fOf' use. be notified as soon as possible. When you are Where required. local and federal licensing or notified. you should be given the opportunity to franchise authorization is the sole responsibility of correct the problem and informed of your right to the user. file a complaint with the FCC. Table of Contents

FCC-Required Notification In the event repairs are ever needed on your Your Home TVRO System. ••..•••...... ••3 Type of ServIce VlDEOpaI unit, they must be perfonned by The VIDEOpal Order Recorder ••••.....•••.•••.•••4 Your VIDEOpa~ unit is designed to be used on Generallnstnlment Corporation. standard device telephone lines. The VIDEOpal Is My DescramblerllRD vcn or VCII Plus""? .•.••••••.•••5

Order Recorder connects to the telephone line by 8; Front and Back Panel...... 6 means of a standard jack called the USOC Pre-Installation Check List...... 7 RJ11C. Connection to telephone company ~ provided coin service (central office implemented Installation ••••.•••••••••••••••••.••...•••8 systems) is prOhibited. Connection to party lines Special Note: The VIDEOpal Order Recorder will The VIDEOpal System and Your Telephone System 8 service is subject to State tariffs. not work properly at this time if you are on a party line andtOf' it is necessary to enter an exira The VIDEOpal System and Your Satellite System 12 Telephone Company ProcedUI'llS number when dialing or if operator assistance is VIDEOpal Authorization ••••••••••••••••••••••• 13 In order for your telephone cOf'npany to provide required to make long distance telephOne calls. Using VIDEOpal Features •••••••••••••••••.••• .15 service to you. it may occasionally be necessary for them to make changes in their equipment. TrOUbleshooting ••••••••.••••..••••..••.••• 19 operations. Of' procedures. If these changes Getting Help. •••..•••...•••.•....•..•.•••• 20 might affect your service or the operation of your equipment, tM telephone COf'npany should give Questions & Answers .•...•..•.....•••.....•• 21 you notice. in writing. to allow you to make any C 1990 C4bfe/HOmll Communication Corp. All rightS Specifications ...... 23 changes necessary to maintain uninterrupted r""""'ed. VldeoCiphel1ll. VlDEOpale. and the VIDEOpalIogo 01 a IhUmb holding a ticket are registered Important Telephone Numbers ••••...•....••••••• 25 serviCe. tredemarkS. and VCII Plus'" is a trademarl< ot General Insrrument CorporBlion. The Satellite Video Center""is a service mark and a joint venture 01 General Instrument Corporation and U.S. Computer Systems ServiCes dba CableOara U.S. Patent No.'s 4.608,456: 4,613.901: 4,634.808: 4,712.238 and patents pending. Brevere 1987: patented 1 1967. / \ ~ -i \ .. VldeoClpher Olvl,lon GENERAL Generallns!rument Corporalion INSfI,UMENf 6262 lusk Boulev,ud San Diego. CA 92121 619/455-1500 FAA 619/535·2486

July 13, 1989

Dear V1deQCipher(~) II Licenseesf ~he excitem~n~ of VIDEopaltm technology is herer In my June 2 letter to you I included a drawing of the internal VIO~Opal Order Recorder, with a draft contract ot the VIDEOpal Inst~nt Pay Per View Order Recorder Master Purchase and Private Label Licensee Agreement. 'l'his document, with it' 8 attached Exhibits, outlines the terms and conditions under which you may purchase a priva~e label standalone VIDEOpal Order Reoorder (VOR) ~oX' an :rnt:.ernal VIDEOpal Order Recorder (IVOR) foX' integ::ation -/into your licensed ItIDs. Althoug'h the contrac:t i8 marked "for discu8sion p~rposes only~ and the epeeifioationa are 8~ill preliminary, no major changes are anticipated Which would impact any redesign of your I~. We are e~cited e.bout the recent addition of eeveral new IPPV pX'og1;'am services to the S~tellite Video Center (SVe) 8uch as Viewers Choice, Cable Video store and Drive-In Cinema. ~he8e eervices, along with anticipated future announcemente, . will certainly stimulate dem~nd for this valuable addition to a horne TYRO eystern. Don't miss out on your oppor~unity to participate in thie market explosion. Although le&d ~imo8 are typically 120 150 days the VideoCipher oivieion is willing to work with you to satisfy any more 1mmedi.te requiremen~8 you have for this produc~. Please contact. me with any questions 01;' to obtain a final executable version of the oontraQt. Sincerely, .. &~ Douglas H. Lindquist Assistant vice ~resident Commercial Sales

DHL/ta / \ •, " P.s. Enclosed is a free sample of t.he Internal VidE/Opl.l Order ." Recorder for your evaluation. X am rea~y to tak~ o£de~s for larger quanti~iesl • Product Showcase THE YIDEOCIPHER It 2100E The decoder has changed but standardfeatures remain. The VideoCipher II decoder is VideoCipher's digital audio pro who thought about getting a long sporting a face-hR. With the intro vides sound reproduction that stick, the 2100E has a welcome duction of General Instrument's rivals that of compact disc players. solution: a 21-button remote con new model-the 2100E-the "box The decoder's radio frequency trol with buttons identical to those with buttons" look of the older (RF) output can be switched to on the front panel. • model is gone, along with its silver channel three or four for connect The 2100E also retains other tone. The gray 2100E is designed ing the TV's antenna terminals. special features unique to Video more like a VCR and, unfortu The decoder's antenna input will Cipher. The ratingceiling, for nately, is nearly as big. Like the accept signals from either a VHFI example, allows parents to limit model it replaces, the 2100E takes UHF antenna or a cable converter the type of programming their up a fair amount of space in your at the push of a button. Once con children may watch. Unlike many home entertainment system. nected and tuned to a VideoCipher parental lock-out controls avail Ge!l§"al Instrument has made able in satellite receivers-which changes inside the decoder as well, lock the antenna on a single satel lite or lock out all channels on a of scramb e rogrammmg. ut given transponder-the Video users won't notice, as e Ideo Cipher system locks out only the Cipher 2100E performs the same specific programs chosen. Kids functions as the older model-with vastly prefer it to a unilateral lock one key difference, a much-needed out of services. Some parents, remote control. however, may have wished for The previous model was avail improvement on one aspect of the able in two versions, but the new rating ceiling feature. To imple unit should help eliminate any con ment the lock-out, a password or fusion over what decoder you need ~ VideoCipher2100E code must be entered that is from for a given satellite system. The one to eight characters long. Ifthe former VideoCipher 2000E and channel, the decoder is ready to password is subsequently forgot 2000EIB versions were designed use. Ifa problem occurs, the help ten, the rating ceiling cannot be for compatibility with most of the button will display on-screen lifted except by calling the pro satellite receivers on the market. instructions. grammer to send special codes to " The 2000EIB, as the additional The 2100E has two jacks on the unit. letter indicates, was for use with the rear ofthe unit. Labeled Data The 2100E can also receive block downconversion satellite and IPPV, these jacks are for the teletext transmitted by the pro systems and could only operate future addition of an impulsepay grammer for screen display. properly if the receiver provided per-view module, which viewers Currently, the text feature is used .. an unfiltered, unclamped (base can use to purchase programming to offer viewers information about band) video signal. The more on a per-view basis. Reportedly. scrambling. But programmers versatile VideoCipher 2000E, the module will contain a tele could send messages, news items, which wasn't always available, phone modem that allows the even full-length articles about pro- could be used with either block decoder to communicate directly amming or current events. downconversion receivers or with with the authorization computer. Then, too, the system has a provi a single conversion downconverter sion for sending messages to receiving a 70-MHz intermediate .INALL'Y A REMOTE CONTROL specific subscribers, should a pro frequency signal. Now, only the When the first VideoCipher II grammer wish to contact you 2100E decoder will be available. hit the streets over a year ago, the about billing or anything else that Like the 2000E, it functions with system offered some valuable fea pertains only to you. either kind of receiver input. tures not previously available. The While the VideoCipher 2100E most unusual of these were, and provides the same features as the EASY HOOK-UP still are, the "view" and "next older models, the manufacturer Connecting the VideoCipher program" features. By pressing has also incorporated some 2100E to your satellite system is no the view button, the name ofthe change~th~t users won't see. To problem; it's the same procedure current program and the time det~tamperel"{; se~k\ng unauthor used tohook up the 2000E. All remaining appears on the screen. ized programming, General necessary cables are included in The llext-program button displays Instrument has added rh.~.'hard the package, and the unit has all the name of the next program ware and changed the;software the outputs for plugging into a scheduled to appear, along with that prl)grams the unit. Any variety ofauxiliary equipment. the time remaining in the current attempt to modify the 2100E for The left and right channel audio program. In the older version, illegal reception could reduce the outputs are for connecting a stereo viewers had to get up off the couch $395 decoder to a piece ofjunk. amplifier ora stereo VCR, and the to push the buttons. Forowners -JerryPoyser

SATELLITE ORBIT1APRIL 1987/•• programmers had shown no inter translate into early action on the est in doing business with them. Tauzin bill. In the, House, another Bob Phillips, CEO of the National Telecommunications Subcommit Rural Telecommunications Coop tee hearing is planned to discuss erative, said he received no dish owner access to PBS, network, response after offering Viacom and other signals, perhaps some International $1 million for advance time this month. That means that subscriptions to Showtime and The H.R. 1885 won't be voted on by the Movie Channel. He also testified subcommittee before late fall or that ESPN "appears to be taking a even early next year. 'cable-friendly' approach," selling So viewing rights advocates only through cable systems or turned their attention to the Senate, through HBO and Showtime. where a hearing was to convene David Wolford, president of July 31 before the Communications Home Satellite Services and CEO Subcommittee, chaired by Senator of CommTek Inc. (the company Ernest Hollings (D-Hawaii). The that publishes Satellite ORBIT), bill may move more quickly in the said his efforts to negotiate with Senate because viewing rights sup the programmers had also been porters like Senator Albert Gore ignored or rebuffed. Wolford Jr.(D-Tennessee) can always take warned that cable companies were the Satellite Television Fair Mar moving to take control of "both the keting Act directly to the floor for a wired and wireless world of pro vote if it gets bogged down in com gramming," and that the public mittee. Even so, the oddsmakers interest was in danger. doubt that either the House or the Senate will act on a viewing rights VIDEOCIPHER FIREWORKS bill before the end of the year. Subcommittee members saved their strongest blasts for J. Law- rence Dunham, executive vice president and general manager of General Instrument's VideoCipher Division. They called him to task BLIND .JUSTICE? for the shortage of descramblers "Justice must be blind," said and the disruption it has caused in Fred Finn, who represented the the satellite TV market. Dunham Home Satellite Television Associa reviewed what his company was tion at the hearing. "Ideological doing to relieve the shortage, pre- whitewash," said another industry dicting that production would catch representative. Christine Gliozzo, up with supply by the fall (see spokeswoman for the Satellite "Issues in Orbit," August). -- •Broadcasting and Communications But Tauzin, for one, wasn~ .. [Association, called Justice's report convinced. "It seems like there ~~ , ' ~ "a real bombshell.filrisidersfound ' some real control going on in this: ; 'theiiivestigation's,conclusions sUi·' marketplace," he said. "The con- i .-pnsmg iillighfOfearlierindica!:ioris cern is ... that the shortages are/' IS r;lrnt-det>arrment ·5 tciffers'na'd , not accidental. I cannot help draw- ill I maeed, -discovered antitrustprob ing that conclusion." A ~ , lemlfinsatellite TV scrarP!>}i~~a~(L Dunham was caught off guard iil__ "thelftogramaisfiibulion business. by the attack. GI officials said later' . -- --Th~teWerelro-surprises,how-; they had comeprepared to discuss ~ . ever, from the FCC's Dennis the section of Tauzin's bill that I : I ~ Patrick and the National Telecom- would require the FCC to set a .... munications and Information scramblingstandard. Instead, they Administration's ~JfI~(LSike~ found themselves accused of inten otln'eiteratea-fheir positions tionally withholding.Q.ecod~rund~ that, in spite of problems with the ~ mani ulatmgtneriiarket. "We had development of program packages to take th'e heatfor tne whole and shortages of VideoCipher II industry," said GI spokeswoman decoders, the satellite TV market Cheri Hart. "There were a lot of is making satisfactory progress allegations, bufnever any proof."- without legislation. "That is not to me1lieCommiUee' members------. say-we-areMntisappointed by the made plain their unhappiness over absence of third-party program the VideoCipher II shortage and the suppliers," Patrick conceded. absence of competitive program- Two would-be independent ming packages, the question re- program packagers testified at the mained at the close of the hearing hearing, confinning that the major whether their impatience would Letters ,i, : TO THE EDITOR o~-\-o'oe.\- \Qg 0o:r

Deep Throat? could read thisarticle, I am certain An acquaintance of mine-I'll they would give up their ill-fated call him "Lance"-told me that the idea thatscrambling can still be de network he works for did not want feated, and instead concentrate on to scramble because it would be obtaining 'a fair price structure counterproductive to its marketing from our lawmakers. plan. So I asked Lance, "Why I have always felt that everY scramble if it will be counter one offering a product or service productive?" His answer?,"Be should receive fair compensation, cause we have no choice. I'll send and herein lies the hope for dish you a copy of a letter we received owners-afair price. . from the cable association that will , Other periodicals still try to explain why we have no choice but lead dish owners down the path into to scramble our satellite feed." the bottomless pit. Congratulations When I received the copy of on showing why plans to start up I the letter I was shocked. What the the superstations can hardly work 1" letter said was, in effect: We are a due to the fantastic startup costs. cable association that represents Willis Roth millions of homes, and if your pro White Lake, Wisconsin gramming service does not scram ble we will drop your network from What About Tomorrow? our cable systems nationwide. , I have been following the This letter was purely and simply scrambling debate since its begin blackmail. This programmer was ning. There are several questions I being told, "Either you scramble would like answered. or we'll destroy you by removing Are thereany regulations that, your viewing audience." would prevent the broadcasters\ As far as I know, extortion is a from changing their scrambling '\ criminal offense. But if a cable technology? For instance, if I went association does it, the offense out tomorrow and purchased a goes unpunished. Why? 1£ I did VideoCipher II decoder and sub that, I assure you I would be writ scribed to the various services ing this letter from Huntsville available, is there any guarantee Prison. I asked Lance, "Why that the broadcasters will continue doesn't your network file suit to use the same scrambling tech- , against the cable association since niques so my $400 decoder .doeS..1' you're being forced to scramble not become obsolete? against your will?" He replied that if; for any reason, the saies7of the network did not have the politi VideoCipher II decoders do not cal clout or the financial resources reach'acceptable levels, will the to pursue such action. ' broadcasters introduce a "Video The point of my letter is this: Cipher III" technology? What is to the programmers are not neces prevent the broadcasters from sarily the ones responsible for changing their scrambling~ech scrambling. And I do not have any nology' any time they choose and intention of voting for any senator for whatever reason they choose? or congressman who takes a pas Lastly, are any broadcasters' sivestance towards the scrambling profiting in any manner from the , issue and the promotion of free sales ofdecoders? Ifso, is this legal? trade in the marketplace. Your views on these questions Ronald Wilkins will be greatly appreciated. Vision Satellite William C. Seal . Plano, Texas , Picayune, Mississippi Editor's Note: Broadcasters-pro Out ofthe Pits grammers-do not profit from the I want to congratulate Ted sales'of decoders. As you may have Dyer for his article "An Expensive suspected. there is nothing to prevent Game" in the August Satellite the changingofscrambling technolo ORBIT. Ifall satellite dish owners gies-except economic factors. The ''''I ~ot • "0""""1\.''''· , tllL.o _ -. N"·· _ .. clip and save j-- . ~:~ \98b/SA1~~~\U: Oll.B\1 .. . S~O~\~ ~-~\JJL\~e.:1' s~ " j .n...... ,-_~~,-- "" WHAT ABOUT THE LAW?

On January 7 j General Instru ment and HBO filed suit against a chips to receive unauthorized pro distributor of pirate chips in Phoe gramming is in violation of section nix, Arizona. A number of chips 705 of the Communications Act of were confiscated, along with rec 1984, and is subject to a fine of up to ords of customers who purchased $1,000 and six months in jail. the devices. Anyone who uses these General Instrument claims that it has the security tools neces· sary to deactivate all unauthorized GI, SBCA Turning Pirates decoders to date. Programmers that rely on VideoCipher technol ogy to secure their programming Into Satellite Consumers support GI wholeheartedly, and AN DIEGO - Respond to signal theft by pirate mer litigation against program .have faith that the situation will Sing to "increasing re chants," the organizations participants. soon be cleared up. Some industry :}uests by consumers who said. Officials of GI said more observers, however, have inter want to return to the legiti In addition, the program than 300 dealers are already preted GI's delay in deactivating mate use of descramblers," should collect data that may enrolled in the VideoCipher these bootleg units as a sign of VideoCipher manufacturer be used to shut down other Module Service Dealer pro uncertainty regarding the Video General Instrument Corp. illegally modified descram gram, which automatically Cipher II descrambling system. and the Satellite Broadcast bIers with electronic coun qualifies them to participate Nonetheless, the Federal Commu ing and Communications As termeasures, and to initiate in the exchange program. nications Commission in Februan" sociation have launched a criminal and civil actions Dealers will be able to pur declared that the VC II is the de program to convert pirates against pirate dealers. chase replacement descram facto decoder standard for the into legal consumers of sat Under the program, con bIers for $239. They will in nation. (For more on GI's latest ellite-delivered program sumers can return working turn set retail prices. decoder, see page 45. For more on ming. pirate descramblers and Retailers will be able to \ the FCC, see page 12.) The Module Conversion purchase a replacement, le qualify for up to $100 in re ~~ Program is also designed to gal descrambler module at bates for participating in the ----~ help legitimate satellite dish prices to be set by the retail program. A $40 rebate is of . .._._- -- -._. retailers increase sales while ers. General Instrument is fered for the return of a "recapturing those consum participating in the program working module, with a sec ers who have been misled in- by pledging not to seek civil ond rebate of $50 available if the "converted" consumer buys a legal programming Cable Operators Predict HDTV Future package. A $10 rebate is AS VEGAS - Seventy-one percent of cable operators awarded if the retailer ob Lpolled predict that high-defmition video formats will re tains the name and location place NTSC formats in program production by 1995, accord of the person or business ing to two recently published surveys by Sheer and Chaskel who supplied the illegal con son Research Inc. in New York. The two studies were the verter to the consumer. fourth annual Broadcast Equipment Marketplace (BE~n-IV General Instrument has Report and the third annual Professional Video Marketplace agreed to assume the cost of (PVM}-1II Report. shipping handling and ad Those surveyed included both broadcast and non-broad ministrative costs of the cast video users. Cable opeators ranked highest in predicting change-out. It will also do HDTV production use, followed by 57 percent of video pro nate $5 per module to the duction facilities who saw HDTV replacing NTSC, 45 percent SBCA's Anti-Piracy Task of religious broadcasters and 42 percent of call-letter televi Force to continue its work.• sion stations.•

Home Satellite and Cable Piracy Update

FBI took a new approach to piracy last month. This one for Cable TV descramblers that were sold on a nationwide basis to . cable customers expecting to bypass Hao and Showtime's sub scription requirements. . The crime that Kevin M. Coyle was tried for in this case was ~all fr~ud. As a result - Coyle, who was found guilty in a non-jury tnal, Will face up to 30 years In jail for a misdemenor turned felony beause the postal sarvcie was involved. . U.S. District Judge Robert G. Doumar compared Coyle to a man "sending a hammer through the mail if he knew the the ham mer would be used to break Into a house." In response, Coyle's at- torney argued that "It was Improper to indict Coyle on felony mail- fraud ~Mrnl=!~ for a crimI=! tMt ~mnlJnts to a mj~iml=!::mnr." accnrrl_ GENERAL INSfRUM ENT

Suggestions and l'l~tructlons for Installation of your vlDEqparM order recorder

1. Read the Installation and Operatiql1 Manual thorough1l.before youatlempt to install the VIDEOpal order recorder, and keep the manual handy during ,the test., !

\ ' ' , , \ 2. Proceed to Install the VIDEOpal orq,~r recorder according to th& Instructions provided in the Manual. Installation Is very s.imple, but should you have any difficulty, please call The Satellite Video Center, at 800/54-VIPEO between 9:00 AM and 7:00 PM - PST (12:00 AM 10:00 PM-EST) on weekdays and between 9:00 AM and 4:00 PM - PST (12:00 PM ~ 7:00 PM - EST) on Saturday. One of their representatives will gladly help you.

I 3. Once th~ VIDEOpal order recorder is Installed, please call the The Satellite Video Center during the hours indicated above, for your Initial authorization. During this call, yo;,) should follow the directions provided by their representatives~ . I 4. Very shortly after your initial authorization call, you'll be ready to order the next scheduled program on the air. To order, please press the a propriate buttons on your VIDEOCIPHEB cC- ~crambleror I remote contro unit. as instructed In your VIDEOpal manual. Again.~ snould you have any questions. please call The Satellite Video Center. during hours of operation.

5. Should your VIDEOpal order recorder break down during the test, they will ask you to return It to our Hickory. North Carolina facility. We will replace it by return mail. Please do not return your unit until they ask you to do so.

6. Because your VIDEOpal order recorder Is a test unit, we may ask you to retum It for evaluation dUring the test or upon its completion. For this purpose, please keep the original Shipping carton to make It easier to return it, at our expense. If we ask you to return the VIDEOpal for evaluation. we will replace it with a production unit.

\ Dear First Run Customer,

\ /( ) Welcome to the exciting world ot Instant; Pay Per View and The Satellite Video Center! Now that you have a Videopal order recorder, with the touch of a button you can order the finest in movies, blockbuster specials, and thrilling sporting events, without 'ever having to leave your home! -, And The Satellite Video Center is here to Inake it easy for you. We are a national clearinghouse to provide one stop shopping instant pay-pElr-view programming. All you have to do is choose which events and movies you want to see, when you want to see them.•• in the comfort of your own home at the touch of a button. No waiting in long lines, no "Sold out" signs, no tapes to return and no late charges! The Satellite Video Center will send you a sim~le bill each month for your previous month's pay-per-v1ew orders. You pay for only those par per view events you've ordered, plus a nominal servl.ce charge only on the months you order!! For your convenience, we have enclosed an information sheet abput the Satellite Video Center...The Satellite Video cent~r and You. We're here to help you enjoy the new world of Instant Pay Per View! Give us a call when you need us anytime from 9 A.M. to 7 P.M. West Coast T1me, Monday thru Saturday. But @ost of all, have fun! G·t·(J~~ Emily C. Cordoba Mgr: Administrative and customer Servi.ce