• Business Week, Wednesday, January 18, 2006 11:46 AM

Rupert Murdoch, recently enamored of the Web, has reportedly told a News. Corp. executive that he may be prepared to spend upwards of $1 billion to upgrade DirecTV, his satellite service, so that it would be competitive with cable as a provider of high-speed Internet connections. Currently, satellite has limitations as a broadband alternative to cable--it is generally slower than the best cable has to offer, and it lack the two-way capability of cable, which makes it more difficult for Murdoch's companies to bundle TV, telephone, and Internet service in a so-called triple-play package. "Over the longer run, the broadband network could provide a ready-made in-house platform for distributing the entertainment and news that News Corp. produces," reports Business Week. "Media companies are quickly warming up to the idea that the Web is a legitimate way to distribute TV and other content"--and Murdoch is thought to be armed for an aggressive foray into satellite for all these reasons.

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