Wednesday, October 12, 2005

EchoStar introduces portable media player

By Sandy Shore / AP Business Writer

Comment on this story Send this story to a friend Get Home Delivery

DENVER --The operator of the Dish Network satellite cable TV service introduced a portable media player Tuesday that can display TV programs or movies, play music and store digital photographs.

EchoStar Communications Corp.'s PocketDish works not only with Dish Network equipment but also with most televisions, PC or Mac computers, digital cameras, digital video recorders and VCRs.

The device, which is not equipped to receive programming broadcast directly from Dish's satellites, is one of a growing number of portable multi-use electronic devices on the market or expected to be introduced that display video content.

Rival products include devices from Dell Inc., Samsung Electronics Co. and Creative Labs. Inc. In fact, the new Dish player is based on an operating system from Archos Inc., which introduced one of the first portable media players.

"It's a nice gadget obviously," Janco Partners analyst Matthew Harrigan said. "They are to be commended for being innovative."

PocketDish augments Dish Network service but isn't a sign of a shift in the core business, analysts said.

"It's an interesting area for them to explore," media analyst Rob Sanderson of American Technology Research said. "I don't know that it's necessarily very impactful for their overall business."

The player comes in three sizes, featuring screens from 2.2 inches to 7 inches and weighing 6 ounces for the basic unit to 20 ounces for the top-of-the-line unit. Prices range from $329 to $599.

It can download or record from TV in real time, similar to a DVR or VCR, through standard television connections. It also can transfer files from certain Dish Network recorders via a USB 2.0 connection at a rate of about an hour of programming transferred in five minutes.

The USB connection also links the player to PCs, Macs and other digital equipment. The player can handle MP3, WAV and WMA music files, but is not compatible with Apple's iTunes.

Sanderson expects most users to be Dish Network subscribers because of the added advantage of transferring files at a faster rate.

Based in Englewood, Colo., EchoStar is positioning itself to face a growing field of competitors, including regional telephone companies that are planning to introduce advanced cable TV services.

The Dish Network is the nation's second-largest satellite TV provider with about 11.5 million customers.

EchoStar first told analysts of the PocketDish during an electronics show in January, part of the company's effort to capitalize on new technology.

During an annual shareholder meeting last month, Chief Executive Officer Charlie Ergen said a key focus for the company is to meet the demands of the traveling public.

EchoStar's stock fell 43 cents, or 1.5 percent, to $28.60 in Tuesday's trading on the Nasdaq Stock Market.