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MPEG-2 Digital
Reception
Basics and A Brief
History of the American
Market
2007 Update
Written By MIKE KOHL / GLOBAL
COMMUNICATIONS
www.global-cm.net
Global
Communications was one of the first companies in North America to import
consumer satellite receivers for MPEG-2 digital reception, beginning in August,
1997. We were privileged to have had a preview of this new satellite
technology the previous January, at a satellite trade show in Auckland, New
Zealand. Timing is important in many new ventures, and this was a textbook
case of being in the right place at the right time. Asia and the Pacific
Rim just happened to be among the first places in which MPEG-2 free-to-air
technology was used on a large scale.
The difference between these
markets and America was that in the Pacific Rim, prior to the mid 1990s, it
literally took very huge antennas to receive even a few dozen channels;
making the idea of getting MANY channels an impossible dream. MPEG-2
digital technology was a breakthrough that allowed great reductions in
per-channel transmission costs. Mass-market consumers in this region never
had a chance, much less a reason, to spend lots of money on costly analog
equipment. Their first exposure to satellite TV was more often than not in
a digital format. Unlike America, which had at least a 20-year learning
curve of increasingly better analog receivers making previous equipment
obsolete, and then a giant leap to digital! Whether or not the Asia
Pacific market received a long term benefit by accidentally becoming the test
bed on getting MPEG-2 right remains a matter of debate, but they were at least a
year or two ahead of America in the development of MPEG-2 free-to-air consumer
receivers. The pie in the sky that served as a catalyst for rapid
development of digital receivers was the potentially huge market of mainland
China.
Competition for a share of the Chinese market has done a great
deal to bring down prices worldwide on MPEG-2 hardware. A history of
pricing can illustrate this fierce competition, starting with the first Hyundai
HSS-100 series receivers that we brought into the United States from South
Korea. 1997 wholesale cost was around $700, the receiver had a memory which was limited to
99 "bouquets", or groups of channels, and the graphics only worked in the PAL
video format. And there was a mysterious looking RS-232 connector in the
back which was "for future use". We had no idea back
then! Graphics only worked in the PAL video format, so to view using our
NTSC formatted hardware required a direct RCA connection to a VCR or video
monitor, as well as some receiver programming "tricks" to fool it into producing
an NTSC picture.
We have traveled a long road since then, with
many significant improvements in the design of receivers, and great increases in
memory capacity as well as overall versatility. The upper end of the
market now has receivers capable of storing 10,000 channels into memory.
Coming months will see the first consumer High Definition receivers available
for Free-To-Air satellite reception, and there are also PVR units from some
vendors which allow many hours of digital recording on a hard drive. Most better units include automatic multi
standards conversion, allowing a
transparent switch between PAL and NTSC formats, no matter what type of TV or
monitor is in use. The lower end of the market has been interesting to
watch, but not necessarily a good place to conduct business. There has
been an evolution in the "pecking order" of MPEG-2 receiver companies.
Most have settled into deals with Asian manufacturers on a private label
basis. Where in Asia has always been the question for smart money to
decide. We have always stayed with receivers resembling, and sometimes
directly traceable back to original Hyundai designs. These have been among
the most reliable, with a number of companies based in South Korea surviving and
prospering, due to pricing efficiencies and the ability to produce a quality
product. China has been a different story, and its role in the development
of MPEG-2 receivers parallels the histories of many other products and
industries attempting to lower costs by producing products in China. Never
has the saying that you get what you pay for been more true. There have
been instances of certain low-end Chinese made MPEG-2 satellite receivers being
sold at the wholesale price of under 50 dollars U.S. Quality control on
such units has had a very checkered history. One can often find it nearly
impossible to trace the origins of parts and receivers produced in China, and
there is the all-too-common problem of no accountability when it comes to fixing
problems in defective receivers. As a reseller of equipment that has to
deal with the general public on a day-to-day basis, we have previously stayed out of
trouble by limiting the choice of receiver brands offered to a few select high
quality units made in Korea. In the past year, we have developed
enough confidence with a rare situation; a U.S. importer of Chinese made
FTA receivers that are both reliable as well as a U.S. based service center
available.
DMS International in Atlanta has developed what is our favorite entry level
receiver, called the Traxis DBS-3500. It is priced considerably lower than
the Korean competition, has an excellent track record for reliability, is easy
to operate, and excels at many features.
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Previous to this, we can cite long histories of
problems with "bargain" receivers purchased by unwitting consumers thinking that
they are getting a good deal. MPEG-2 digital receivers should be
considered as complicated as most computers, and all such equipment can fail on
occasion. Companies such as Panarex Electronics in California have done
the research and made the investment in securing a steady supply of high quality
receivers, and then set up a U.S. based repair facility to handle both in and
out-of-warranty service. The PANSAT line of receivers is now acknowledged
as the industry leader in innovation, quality, and reliability.
Latest in PANSAT's evolution of high quality MPEG-2 receivers are models 2700,
3500SD and 6000 HXC, which continue the quality and tradition of previous
high-rated receivers such as the 330 and 2500, and break new ground with
refinement of their "SMART SEARCH" feature. This is the Pansat term for a
feature otherwise known in the industry as "Blind Search", or a receiver with
the ability to search out and deliver unknown channels into its
memory.
| Pansat 2700 MPEG-2 Receiver |  |
That was the best---now for some
basics on what makes this and other MPEG-2 receivers tick.
MPEG-2 is a
worldwide satellite transmission standard for digital broadcasting. It is
the wave of the future, because of the simple economics that can allow ten or
even 15 video channels to occupy the same space as one channel of analog
transmission.
Just as some Analog signals can be scrambled or encoded for
subscription use, Digital channels can be transmitted either scrambled or
in-the-clear. In-The-Clear is known in the digital TV world as FTA or
Free-To-Air. Since it is a worldwide standard, there are more MPEG-2/DVB
(digital video broadcasting) channels available in places such as Europe, the
Middle East, and Asia, than presently found in the American market.
National public broadcasters in other parts of the world have adopted MPEG-2
free-to-air as a cost-effective way to distribute signals on a limited
budget.
Spread of free MPEG-2 signals into North America has been
previously hampered by the dominance of the DC 2 (DigiCipher 2) video standard
made by the former General Instrument (now Motorola Broadband) group.
Receivers such as the 4DTV and other versions of Digicipher 2 actually have the
letters MPEG-2 stamped on them, but are not compatible with the rest of the
world. The difference comes in the way that signals are layered together,
especially in the encryption process. This system has previously
been the standard for cable television systems as well as the large-dish
(C-band) 4DTV receiver, and effectively a near-monopoly on digital television in
North America. Other competition is out there, such as
Scientific-Atlanta's PowerVu, which is much more closely related to what is
known as MPEG-2 in the rest of the world. PowerVu has a substantial chunk
of the international satellite market, due to good relations with the worldwide
PanAmSat (now owned by former competitor Intelsat) satellite distribution system, and its recommendations as a conditional
access system of choice. What is different about PowerVu (versus
Digicipher 2), is that when signals are NOT addressably encoded, signals can be
viewed in-the-clear (or Free To Air) on most consumer MPEG-2 digital
receivers. Several small-dish systems in North America use the MPEG-2
platform, and when they choose NOT to encode, signals are available on a
Free-To-Air receiver in the same manner. These include Canada's BELL
EXPRESSVU, Mexico's SKY MEXICO, as well as certain systems on the Ku side of the
GALAXY 25 satellite at 97 West.
An unusual mix of compatible Free-To-Air
systems has presented the opportunity for a number of channels to become widely
available to North American viewers. There are always a few channels in
the transition between in-the-clear and subscription transmission mode.
The ultimate goal in many cases is for a subscription service, but some channels
have been in-the-clear for months and even years before reverting to
scrambling. When a channel goes into that mode, arrangements are usually
available with one of the small dish DBS services to sell a subsidized price
receiver when making a long-term commitment to a subscription. We shall
concentrate on the channels that continue to transmit in a free mode.
A
great number of channels available Free-To-Air in MPEG-2 are those from other
countries. Such availability is contingent upon somebody paying the bill
for satellite transmission across the ocean, and then re-transmitting to the
North American market. In some cases, the North American signal is made
available on one of the small-dish systems such as DISH Network or DirecTV for a
monthly fee, but the incoming feed from overseas is left in the clear. The
reason is primarily economic, with the logic that very few people will go to the
trouble of installing a large C-band antenna in this day and age to view one
free channel, when they can have it delivered by alternative methods for what
some might consider to be a reasonable fee. Problem is that this "free"
reception sometimes gets too popular, and the powers that be at a company such
as DISH Network decide to encode the incoming international signal; thus
forcing all viewers that want that signal to subscribe. This scenario has
played out before in the past for channels from Poland, Russia, and other
signals. A great number of Arabic channels are presently in the clear...a
few are incoming feeds for DISH Network, while several others are sponsored and
paid for by different governments in Middle East countries such as Saudi Arabia
and others. The latter wish to make their signals available around the
world to expatriates as well as the general public everywhere as a window into
their culture. These governments pay to keep these signals available free
of charge to individual viewers with satellite reception equipment. Such
benevolence goes against the U.S. model of commercialism and paying for TV, but
it helps explain why some signals are readily available here while others are
not. Somebody has to pay to get it onto satellite, and if a country or a
language does not have either a sponsor or an adequate number of paying
customers, it will likely not be available to our market.
PLEASE READ BEFORE considering the
purchase of an MPEG-2 Receiver
We cannot guarantee the permanent availability of any one particular
channel. These receivers are primarily designed for the hobbyist; to
allow hundreds of additional channels to become available via satellite.
This is NOT the same as, and not a replacement for a 4DTV digital
receiver. It should be considered as a supplementary method of getting
additional channels otherwise unavailable---no more, no less. Nor should
this be considered as a permanent way to receive channels that are available on
a small dish system which normally charges subscription fees. It will NOT
give you free movie channels or enable you to disconnect cable television or
other normally subscription pay-TV service. But there may be something
else up there of interest to most people, especially foreign language, music
channels, and a growing number of religious channels. These diverse groups
of services have found wide acceptance in ethnic and religious circles based
upon the ability to have specific programming of interest to a narrow group of
people with common interests. No subscription is needed in most cases,
with the foreign channels often paid for by the originating governments to reach
expatriates around the world, and religious channels more than covering their
expenses through donations received from viewers. It can often be done on
a 30 to 36 inch antenna and a digital receiver.
Please do a little homework by
studying sources such as the Lyngemark Satellite Chart at http://www.lyngsat.com/ or study our
entire MPEG-2 section found on the Global Communications website at www.global-cm.net
These lists will
show current in-the-clear (Free-To-Air) channels, if you are looking for
particular information on the status of a channel or service. Any channel
that is now part of an otherwise subscription service but temporary available in
Free mode should be considered as NOT available on a permanent basis...unless
you pay a subscription fee and have hardware for that service. Otherwise,
do what most hobbyists do...enjoy the free show while it lasts. If a
favorite channel goes away, rest assured that something new will soon catch your
interest. The number of channels continues to grow with
time.
NOTICE Over the
past year or more, a new trend has emerged that is probably too good to be
true. You may have heard names like "BLACKBIRD", "SILVERBIRD", "SILVER
BULLET" and others, applied to MPEG-2 receivers that claim to be capable of
receiving subscription programming free of charge. Certain promoters have
even claimed the idea that such reception is legal. Numerous receivers
have been modified by unscrupulous people hoping to make a fast buck on the
greed of certain folks that still believe that you can beat the system and that
premium television is something that you should not have to pay for.
Common sense should tell you otherwise. Laws are now on the books in both
the United States and Canada that list heavy fines and even prison time for
stealing programming. It's not a joke any more, and if you are foolish
enough to buy into the idea that you can permanently avoid paying for satellite
channels that normally require payment of a subscription, an expensive lesson
may be in your future. If this is not enough to make you think twice about
beating the system with modified equipment, think about this: Two of the
largest companies affected by such hacking (Bell ExpressVu in Canada and DISH
Network in the United States) are continually updating their security systems,
so the prospect of getting these channels without cost in the future will be
quite limited. Rest assured that both companies will eventually get their
"leaks" under control, just as DirecTV did after implementing tougher
security measures.
Please do not ask us about cheating the system, because we cannot and will not
assist you. MPEG-2 receivers have many legitimate uses, and there are
hundreds of channels available, many targeting very narrow groups of
interest. Study the information provided on our website to become familiar
with what is truly available free-to-air.
For more information, go to the
GLOBAL COMMUNICATIONS website at http://www.global-cm.net/
Contact
MIKE and LAUREL KOHL at GLOBAL COMMUNICATIONS
Address: S-9141
State Highway 23 Plain, Wisconsin
53577
Telephone (608) 546-2523 Fax (608)
546-2157 EMail globalcm@mhtc.net
Telephone Business
Hours 9 AM to 6 PM Central Time Monday through
Friday
FAX and E-MAIL available 24 hours per day
Revised April 4,
2007.