Clayton Returns to His Satellite Calling As CEO at Dish Network

Joseph Clayton, who helped launch DirecTV with RCA in 1994 and helped steer the launch of Sirius Satellite Radio in 2002, couldn’t resist the lure of a new chapter in the satellite business, he told Consumer Electronics Daily Monday. Clayton, who will assume the titles of president and CEO of Dish Network next month, joins Chairman Charlie Ergen, whom he described as “a visionary."

Clayton and Ergen go back 20 years to Ergen’s days as an RCA DirecTV distributor at Dish Network, Clayton told us. More recently, Ergen asked Clayton to sit on the EchoStar board after Clayton stepped down as chairman of Sirius following the merger with XM Radio in 1998. Enjoying the retired life since, “I got tired of taking out garbage and changing light bulbs,” the colorful Clayton told us, adding, “I'm pretty familiar with the goings on” at Dish, EchoStar’s sister company.

After Ergen’s recent shopping binge with DBSD North America and Hughes Communications, followed by the deal for Blockbuster Entertainment, “I got really interested,” Clayton said. “It was changing the landscape again and I like that.” Ergen offered Clayton the job a little over a week ago, and the former RCA exec is already out in Colorado, “has put a bid on a house and bought a Range Rover,” he said. “Now that Charlie’s putting the Ergen Empire together with these new assets, you have to believe, based on past performance, that he’s probably looking at other things to try to put this puzzle together,” Clayton said. “I think he’s got all the straight-edge pieces and now he’s filling in the middle.” That’s “pretty enticing” for a guy who “likes to shake things up,” he said.

When asked how Dish will look under Clayton versus Ergen, Clayton said he doesn’t expect it “to look a lot different.” Ergen is still the chairman, the founder and the largest shareholder, he said. “He’s not going away.” What Clayton brings are the “the same things I've brought to every business I've ever been involved in,” he said. He’s still “a big believer in the brand,” in creating value for the consumer, in distribution and having technology “to make your product better,” he said. “I have all those capabilities to do that here."

Clayton sees a bright future for the satellite industry, despite its challenges, he said. “I don’t think this is the end of a category,” he said. “I still think it’s the beginning.” The Hughes deal enables EchoStar to offer broadband, and he sees a lot of enhanced services that can be driven by satellite technology. “Why wouldn’t a consumer want video and data?” he said. “There will be more amalgamation and consolidation,” Clayton predicted, citing changes that have already occurred in the cable and telecommunications industries. For Blockbuster, Clayton sees “a new chapter” with a brand that “speaks for itself” and offers physical and digital distribution. “Those all play into what we're doing here,” he said.

Regarding how the two strong personalities will get along in the same company, Clayton cited the fact that he’s from Kentucky and Ergen from Tennessee -- “not the most friendly states when it comes to basketball so I'm sure there will be some lively discussions.” He also cited his respect for Ergen, an industry pioneer. “I wouldn’t have come out here if there weren’t mutual respect between Charlie and myself,” Clayton said. “If I don’t know who he is after 20 years, shame on me.”