PanAmSat Strikes 10-Year Deal With AOL Time Warner

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Video and data broadcaster PanAmSat Corp. said yesterday that it has reached a $250 million deal with AOL Time Warner Inc. to continue delivering programming for the media conglomerate via its next-generation satellites.

The deal calls for the Greenwich, CT-based company to continue transmitting television programming for AOL Time Warner-owned cable outlets HBO and Turner Broadcasting System Inc. through 2015.

The 10-year contract provides for satellite transmission services beginning in 2005, following the launch of advanced satellites. They will succeed the Galaxy V and Galaxy IR satellites upon their scheduled end of life. The company currently has 21 satellites in orbit.

AOL Time Warner also agreed that PanAmSat would continue to work with the two cable stations in future digital service offerings, such as high-definition television and video-on-demand.

"This agreement highlights HBO and TBS Inc.'s confidence in the long-term role satellites will play in the delivery of entertainment programming as well as in the introduction of advanced digital applications," said R. Douglas Kahn, PanAmSat's president/CEO.

"As HBO and TBS Inc. continue to develop leading content and innovative new offerings, PanAmSat will supply them with the latest satellite technology and services, enabling them to reach the biggest audiences," he said.

The company also said it has a deal with Warner Bros. to deliver programming digitally for the WB Television Network and Warner Bros. domestic television services.

Terms of that deal were not disclosed.


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