HUGHES ELECTRONICS CORP
8-K, 2000-05-09
COMMUNICATIONS SERVICES, NEC
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                       SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549-1004





                                    FORM 8-K
                    CURRENT REPORT PURSUANT TO SECTION 13 OF
                       THE SECURITIES EXCHANGE ACT OF 1934



          Date of Report
(Date of earliest event reported) May 9, 2000
                                  -----------




                         HUGHES ELECTRONICS CORPORATION
              -----------------------------------------------------
             (Exact name of registrant as specified in its charter)




      STATE OF DELAWARE               0-26035                 52-1106564
- ----------------------------   -----------------------    -------------------
(State or other jurisdiction        (Commission            (I.R.S. Employer
 of incorporation or organization)   File Number)         Identification No.)




                          200 North Sepulveda Boulevard
                          El Segundo, California 90245
                         -------------------------------
                                 (310) 662-9985
                                ----------------
               (Address, including zip code, and telephone number,
        including area code, of registrants' principal executive office)























                                      - 1 -

ITEM 5. OTHER EVENTS

      On  May  9,  2000,  a  news  release  was  issued  by  Hughes  Electronics
Corporation's subsidiary, DIRECTV, Inc., announcing that Blockbuster and DIRECTV
have formed a distribution,  pay-per-view and marketing alliance. The release is
as follows:

                   Blockbuster and DIRECTV Form Distribution,
                       Pay-Per-View and Marketing Alliance

                Companies Plan Co-Branded Pay-Per-View Service on
                DIRECTV Platform, and to Sell DIRECTV Systems in
                       5,000 Blockbuster Stores Nationwide

     DALLAS and EL SEGUNDO,  CA, May 9, 2000 - Blockbuster Inc. (NYSE: BBI), the
leading renter of video movies and video games, and DIRECTV,  Inc.,  provider of
the nation's leading satellite television service,  announced today a multi-year
agreement to expand  Blockbuster's  traditional  video  rental  business for the
first time to  pay-per-view  via the  DIRECTV(R)service  and cross  market  each
other's  products  to more than 50  million  combined  DIRECTV  and  Blockbuster
households.  Blockbuster is a publicly traded subsidiary of Viacom,  Inc. (NYSE:
VIA, VIAB).

      The agreement also opens a new  distribution  channel for DIRECTV  through
the 5,000  Blockbuster  stores in the  United  States,  including  participating
franchise stores,  which will begin selling DIRECTV System equipment and service
in Blockbuster stores.

      Under the  agreement,  the  companies  plan on  introducing  a  co-branded
pay-per-view  service  on  DIRECTV.  DIRECTV  currently  offers  as  many  as 55
pay-per-view  choices per day and  Blockbuster and DIRECTV will work together to
increase the selection and variety of movies available.

      "DIRECTV and  Blockbuster  are two of the most  recognized  brand names in
home  entertainment,  having  redefined  both the  pay-per-view  experience  and
video-rental  experience in the United  States," said Bill Casamo,  president of
DIRECTV  Merchandising,  Inc.  "Together we have an  opportunity  to promote our
products  to  millions  of existing  and  prospective  customers,  and deliver a
compelling portfolio of home entertainment services."

      "Blockbuster  is expanding its universe into the  fast-growing,  satellite
pay-per-view market, giving our members more options for home entertainment than
ever  before,"  said John Antioco,  chairman and CEO for  Blockbuster  Inc. "Our
goal, which we are highly  motivated to achieve under this agreement,  is to add
significantly to our financial  outlook by having as many Blockbuster  customers
as possible subscribe to DIRECTV and enjoy movies over pay per view.

      "We  believe  that  through  our  store  traffic,   our  direct  mail  and
blockbuster.com  we can  acquire  more  DIRECTV  customers  than anyone else and
increase DIRECTV's  pay-per-view revenues to the benefit of both companies while
at the same time continuing to grow our store-based  video rental business.  The
overall effect should be that we grow the entire home entertainment category."

      Beginning in the third quarter of this year, Blockbuster will sell DIRECTV
Systems in Blockbuster stores. The DIRECTV Home Services Network will facilitate
installation of DIRECTV Systems purchased by Blockbuster customers. DIRECTV will
also receive significant  promotional support that includes signage and in-store
displays,  and both  companies  will promote the  alliance  through a variety of
local and national marketing and advertising programs.





                                      - 2 -

      DIRECTV,  Inc. is the  nation's  leading  provider  of digital  television
entertainment service with more than 8.5 million customers,  including customers
subscribing to PRIMESTAR by DIRECTV. DIRECTV, Inc., a unit of Hughes Electronics
Corporation.  Hughes  Electronics  is the  world's  leading  provider of digital
television  entertainment,  and satellite and wireless systems and services. The
earnings of Hughes Electronics,  a unit of General Motors Corporation,  are used
to calculate the earnings per share  attributable  to the General Motors Class H
common stock (NYSE: GMH).

     Blockbuster Inc. (NYSE: BBI) is a publicly traded subsidiary of Viacom Inc.
and is the world's leading renter of videos, DVDs and video games with more than
7,200 stores in the United States,  its territories and 26 other countries.  The
company may be accessed  internationally at blockbuster.com.  Viacom Inc. is one
of the world's  largest  entertainment  companies  and a leading force in nearly
every segment of the international media marketplace.

     Editor's  Note:  Photos of Bill Casamo and John Antioco are  available  for
editorial use at www.wirepix.com/newsphotos.


                                   * * * * * *


                                    SIGNATURE


   Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                          HUGHES ELECTRONICS CORPORATION
                                          ------------------------------
                                                  (Registrant)



                                       By
Date May 9, 2000                       /s/Roxanne S. Austin
     ----------------                  -----------------------------------
                                       (Roxanne S. Austin,
                                        Chief Financial Officer)
























                                      - 3 -



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