L.A.-Based Telstar Acquires SelecTV Satellite Service

Telstar Corp., a Los Angeles-based media company, said Friday that it has acquired SelecTV, a satellite programming service, for undisclosed terms from the controlling shareholder, Clarion Co., a Japanese electronics concern.

SelecTV, which delivers movies and special-event programs via satellite to subscribers, has about 100,000 subscribers in Los Angeles and serves about 100,000 apartments elsewhere in the nation, primarily in Sacramento, Houston and New York.

Two years ago, when SelecTV acquired its local competitor ON-TV, the two services boasted 215,000 subscribers in the Los Angeles area alone. But subscriptions to these over-the-air services have waned since late 1981, when the industry peaked at 1.5 million subscriptions nationwide. At the end of 1981, for example, SelecTV had 112,000 subscribers and ON-TV had 387,000.

Decline of Industry

According to an industry newsletter published by Paul Kagan and Associates of Carmel, only two other services were operating elsewhere in the nation as of last September, serving just 34,753 customers.

The industry has declined largely because of the growth of cable television, which offers dozens of channels for a similar fee, one analyst said Friday. He asked not to be identified but predicted that satellite services such as SelecTV “can exist as an alternative system.” In the analyst’s view, satellite operators have less control than cable TV systems over the decoder boxes placed in the subscribers’ homes and therefore have greater trouble servicing and collecting accounts.

Telstar, a 5-year-old company, said it expects to “enhance” its market penetration as a result of a recent agreement with Amway Corp. to market its 24-hour programming to home dish owners.

James L. LeVitus, SelecTV’s chairman and chief executive, could not be reached for comment Friday, but he issued a statement saying that the company’s sale “represents the best possible promise of future growth and continued stability for our service.”

In addition to providing 12 to 15 movies each week, SelecTV offers Los Angeles subscribers live sports events, including the Lakers, USC Trojans and L.A. Kings, and late-night adult programming.

Joseph A. Corazzi, Telstar vice chairman and chief executive, said the company expects to report net income of about $1 million for 1986 on sales of $16.5 million.