DirecTV Touts HD Ambitions

[Sean Mota]

[FONT=Arial, Helvetica, sans-serif]DirecTV Touts HD Ambitions[/FONT][FONT=Arial, Helvetica, sans-serif]
But EchoStar Makes Subscriber Gains From Frustrated Viewers [/FONT]
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[FONT=Arial, Helvetica, sans-serif]Source:http://www.tvweek.com/page.cms?pageId=292



[/FONT][FONT=Arial, Helvetica, sans-serif]DirecTV touted its ambitious HD plans at an investor's conference last week, while many customers appear as frustrated as ever with the satellite operator's HD offerings and practices.

DirecTV assured Wall Street during the Kaufman Bros. conference in New York that by the end of 2007, the satellite provider will have enough capacity to offer 1,500 high-definition local channels and 150 national HD channels. Plans call for the launch of DirecTV's ninth and 10th satellites in the spring and summer of next year. DirecTV also touted its local channel growth, noting that the company can provide HD local channels to 58 percent of all U.S. households.

But in the meantime, DirecTV customers are venting their frustration in online forums. Currently DirecTV offers only seven channels in its HD package, compared with competitor EchoStar's 29, more than four times as many.

DirecTV's lineup is so crunched that last Sunday TNT HD was taken off the air to temporarily make room for NFL Sunday Ticket HD. In other words, the service literally cannot add an HD channel without taking one down.

Romulo Pontual, DirecTV's executive VP and chief technology officer, said this week that on future Sundays, the company will not necessarily yank TNT HD but rather "whatever [channel] is not relevant for the afternoon."

And then there's the issue of quality. HD fans love the format for its clarity. But for years hardcore DirecTV viewers have derided the service for providing "HD Lite"—a downsized resolution image that doesn't hold up when placed side by side with certain competitors.

"I have seen those alleged posts … we carry two HD channels on each transporter, and I believe EchoStar is the same," Mr. Pontual said. "I don't think we're making our services any worse—our services are good."

In recent quarters, EchoStar seems to be profiting from DirecTV's sluggish response. At the end of the second quarter, 1.3 million of DirecTV's 15.5 million subscribers had an HD package (up from 700,000 from the same period last year).

EchoStar's Dish Network service has about 12 million subscribers and is typically very protective of its HD subscriber count—even declining to provide the information when directly asked on a recent investors conference call.

But according to Kagan Research, EchoStar will have 1.6 million HD subscribers by the end of the year (compared with 600,000 at the end of last year).

The numbers are difficult to compare apples-to-apples since the firmest DirecTV figures are for the second quarter, and best available EchoStar figures are year to year. But if Kagan's projection holds up, the figures indicate 85 percent growth for DirecTV versus 166 percent for EchoStar.

Factoring in Kagan's projection for DirecTV, the race is tighter: 800,000 at the end of last year and 1.9 million projected at the end of this year (a 137 percent increase).

In terms of overall subscribers, EchoStar is firmly growing faster than DirecTV. During the most recent quarter, EchoStar added 195,000 subscribers compared with DirecTV's 125,000.

Mr. Pontual said he expects the next quarterly report to show a significant upswing in HD subscribers now that DirecTV has released its long-awaited proprietary HD DVR, which sells for less than the previous Tivo-based model offered by the satellite operator.

"We were selling the other DVR at a premium price," he said. "Now we have our DVR and we dropped the price and are selling every one we can produce. You're going to see a reversal … you're going to see a huge uptake in the HD package."

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[Sean Mota]

And then there's the issue of quality. HD fans love the format for its clarity. But for years hardcore DirecTV viewers have derided the service for providing "HD Lite"—a downsized resolution image that doesn't hold up when placed side by side with certain competitors.

"I have seen those alleged posts … we carry two HD channels on each transporter, and I believe EchoStar is the same," Mr. Pontual said. "I don't think we're making our services any worse—our services are good."

Wow!!!! What a blow to the Face of subscribers. Good to WHAT? That's not the point..... We want 1920x1080i not HDLITE at 1280x1080i and low bitrates. This is an indication that DirecTv will only match what others are doing and will not give subs the best quality obtainable even with 150 hd capacity in the future. I am very dissapointed about this.

 

[Jamey K]

Alleged posts? What an arrogant blowhard.

Romulo Pontual, The Man Who Doesn't Get it.

 

[rickaren]

Time for DISH to make their plans know! It's in their court now.

 

[cforrest]

They'll just lose HD subscribers to Cable/Fiber services that can provide all HD channels at full resolution.

 

[dfergie]

Mr. Pontual said he expects the next quarterly report to show a significant upswing in HD subscribers now that DirecTV has released its long-awaited proprietary HD DVR, which sells for less than the previous Tivo-based model offered by the satellite operator

Ummm Dvr 7 channels or 29...

 

[rickaren]

I thought it was 30 with more to come maybe this week.

 

[dfergie]

I have both providers and will keep, waiting on the Alb. HD locals from D* then I might consider a Dvr if they get Krqe onboard...

 

[Madtown HD Junkie]

they lost me and I have been there since 98'....E*goes in tomorrow

 

[LOBO2999]

Glad I dont pay for the HD package and I dont plan on it , funny thing is after a free trial, I tried to call and drop it and they keep giving it back to me for free to try agian and agian .

 

[Optical Serenity]

I don't think he "doesn't get it" in fact, he probably very much "gets it." Thing is, he has a job to do, and part of that job is simply saying what he is told to say.

 

[charper1]

Here are some points to ponder in conjunction with his comments and events:

1. Dish down-rezes as well and the DirecTV product is as good; which I think was his point. I don't think that he was tauting or slamming either, just stating they are doing the same basic things and provide a good product; not great/perfect

2. DirecTV has always stated that the majority of current and likely sub's want LIL HD now, HD RSNs, and then national HD (when looking at what nationals are available to add now). HD LIL and RSNs add current/new programming and live events and most national HD that has yet to be added it nothing but reruns, and upconverts. DirecTV remains true to this process and should not be faulted for what they know most of their subs want, as opposed to the handful of us hardcore HD subs want. We are the minority and DO NOT pay the bills. YET! They can't please everyone all the time, but they MUST please the majority. Cause if the bills don't get paid NONE OF US will get ANYTHING! and although I don't think it would ever get that far, I would rather not end up like PrimeStar or Voom.

3. As related to #2, DirecTV got "caught with their pants down" by the Dish purchase of the Voom satellite - Rainbow1. This is where they (Dish) got the JUMP; the vast majority of extra channels and minimal extra space to add a few additional national HD now. DirecTV obviously did not see this coming BUT still has to stick with the build and deploy schedule for DirecTV-10 & 11. Dish also now seems to be suffering from the same PQ & down-rez issues that people slam DirecTV for and what are their current plans for new satellites compared to DirecTV?

4. I didn't see, but why didn't they talk more at length about the TNT vs NFL channel issue? This is what really needs to be addressed ASAP. It at minimum needs to be explain what happened, and how it will be addressed for the remainder of the season; did I just miss those details?

 

[colebert]

Looks like it will be address by playing Russian roulette with the HD channels.

 

[asousa]

I only get the HD package for MNF when I want to watch the game... other than that the other channels are useless...

 

[Sean Mota]

Here are some points to ponder in conjunction with his comments and events:

1. Dish down-rezes as well and the DirecTV product is as good; which I think was his point. I don't think that he was tauting or slamming either, just stating they are doing the same basic things and provide a good product; not great/perfect

Yes, Dish down resizes but DirecTv is not even close to the same as Dish. For example,
Let's look at the common channels:

HBO, Showtime, Discovery HD Theater, TNT HD and UHD are all 1920x1080i on Dish Network. On DirecTv they are 1280x1080i --- not a match.

HDnet and HDnet Movies are 1440x1080i on Dish Network and on DirecTV 1280x1080i --- again not a match.

In fact all 1080i channels on DirecTv (not mpeg4) are 1280x1080i which are not a match on Dish Network and in lots of cable systems

 

[charper1]

I am just saying, first it was "Dish doesn't down-rez and DirecTV does, so everyone jump ship". Now its "but Dish only does a some" so keep defending them. Next thing you know Dish will be down-rezzing the same amount and nothing new going up before DirecTV-9s & DirecTV10 & 11 (any mention of what the replaced by DirecTV-9s 101 sat will become?), There is a Echostar 11 listed somewhere between DirecTV 10 and 11 (is it a replacement or a total new addition of space?). Until that time is Dish going to keep down-rezzing more to continue to add anything and everything just to inflate the total number? I mean hell everything seems to be damned if you do, damned if you don't because they can't just snap finger and build, launch, add. I have no issues waiting out a plan untill that plan is reneged on, which HAS NOT happened. I am in TOTAL agreement on the TNT/NFL crap, and mildly concerned about down-rez until new sats are working. Then I will make judgments. The purchase and of Rainbow1 and the deal for Voom is the only reason Dish is able to promote any advantage; which is good for them, turned out to be a decent desperation deal in the eye of what they are about to face IMHO; enjoy the short lived gains, but also bitch loudly about their down-rez equally.

 

[riffjim4069]

I feel sorry for D* HD folks and there 10 channels of HD-Lite,,,when they could switch to E* and have three times as much HD-Lite. Seriously, the sooner D* starts offering HD en masse, the better it will be for everyone...just knock-off the tired "up to 150 National HD channels" double-talk and rhetoric we've been hearing since 2004.

FiOS, FiOS

 

[JamesJ]

and can we change the title to one of the two options below?
My name is Sean and I hate directv, me and vurbano will piss and moan every chance we get

or

Interview with Directv

I dont believe Directv is touting its HD, this is a interview, if Directv were touting, then it would be all over their web page and flyers, and commercials.

 

[Sean Mota]

why does it have to be Sean or Vurbano hate DirecTv when the facts speak for themselves? It was not me or Vurbano that spoke to tvweek.com and gave the statement that says that DirecTv will not improve their HD quality but will match the market. Neither I nor Vurbano or anyone else is inventing this. D* subs you do not have to go into the defensive mode... it is what it is. and this is the head of directv talking- not me and not vurbano or anyone else.

P.S. the fact is that currently DirecTv cannot even match the market but are worse of the worse... Fact not fiction or fantasy...

 

[charper1]

It was also evident that the interview was done as much as a few weeks or so ago and only published today. Even the interviewer was mistaken on things that have happened over the last week or so.

I also don't think anyone is going into a blanket defensive mode, yet pointing out the few inconsistencies and the avoidance of blasting the competition for doing the same things. DirecTV is delivering on its promises in the time frame they laid out. I for one do not want to give up years and years of service (hearts or whatever) and the NFL, and start all over on the bottom rung, a new contract, for a few more bells that aren't all that impressive, just to bitching to be coming back in 2007 for yet another new account. Especially now that they both are doing the same stuff; not to mention HUGE DVR and DNS issue looming over head.

Sure I am all over the TNT BS and want the full HD like everyone else, but its been explained why its happened and 2007 is the D-day/year for them to get it together. At that time I, like most will re-evaluate the options, but not in advance before anything has had its planned opportunity. To do so is just bandwagon jumping every time something is 1% better.

I also would love to have FiOS, maybe they WILL continue to show others how to do it right BUT until it can serve 75% or more of the nation, a be a "player" then its is not comparing apples to apples like Dish and DirecTV and really doesn't belong in these discussions. It should be compared to whatever its tiny local or regional competition is.