Commentary
DIRECTV Doesn't Care About HD Anymore
By Swanni

Washington, D.C. (July 12, 2011) -- Two years ago, I predicted that DIRECTV would dramatically slow down its rollout of High-Definition channels. At that time, the satcaster was considered the leader in HD programming, offering more than 100 HD channels.

But I predicted that DIRECTV would decide it would no longer pay extra fees to basic cable channels to carry their high-def channels; I added that DIRECTV would conclude that the extra HD channels would not result in additional subscribers so why spend the dough?

Two years later, my prediction has clearly come true. DIRECTV has added about 30 HD channels over the last two years, but most of them have been HBO and Cinemax channels which the satcaster committed to carrying back in 2007.

DIRECTV clearly does not want to pay basic cable channels such as AMC, BBC America, E!, National Geographic Wild (and many others) to carry their HD editions. Consequently, DIRECTV does not carry these HD channels while most of their rivals do.

When I made my prediction two years ago, I was attacked viciously in e-mails and on Internet message boards by DIRECTV apologists who said the satcaster would continue to rollout basic cable channels as well as premium channels in high-def. They said DIRECTV would have 200 HD channels by now, as the satcaster alluded to in a series of misleading commercials it ran about its '200 HD Channel Capacity.'

Well, if the apologists still believe that, they need to read the following paragraphs in a Multichannel News article that was published yesterday. Here's what Multichannel News wrote:

"For DirecTV, the HD “bigger is better” battle is over. “To be honest, I think right now, everyone’s got most of the important stuff in HD,” Derek Chang, DirecTV executive vice president of content strategy and development, said. “Once we got to 100 channels, it became about delivering the overall experience.”

There’s less benefit in trying to hit 200 HDs because those by their nature will be less-watched networks, he noted. DirecTV is going to continue to add channels “selectively as we see fit and where we can deliver value to the customer,” Chang said. The satellite operator is advancing along several new fronts, including 1080p HD (Blu-ray Disc quality), early-premiere movies, sports, iPad apps, multiroom viewing and enhancing the guide.

“HD is just one piece of the puzzle,” Chang said.

Folks, can it be more obvious? DIRECTV no longer thinks that adding HD channels is an important factor in attracting and keeping subscribers. In 2007 and 2008, the satcaster used its high-def expansion to built its subscriber totals. But now, the company believes that adding HD channels is too costly; it makes more sense to launch such programs as multiroom viewing and $30 Video on Demand movies.

In short, DIRECTV doesn't really care about HD anymore.

So if you're a HDTV owner who does care about HD -- who doesn't think you have gotten "most of the important stuff in HD" -- you have a choice to make. If you stay with DIRECTV, it's highly unlikely you'll ever get channels such as AMC and BBC America in HD, at least not for some time. But if you leave DIRECTV, your next TV provider may already carry them.

It's your choice.

Final Note: Here's why I wrote in December 2009 in my 2010 Predictions story:

DIRECTV Will Offer Less Than 200 HD Channels
The satcaster has just launched a new satellite that will double its capacity to offer high-def channels. DIRECTV, which now claims it offers 130 HD channels (including PPV), says it will have the capacity to provide 200 HD channels.

But I predict that DIRECTV will fall far short of the 200 HD channel count in 2010, even when you factor in PPV channels. I also predict that DIRECTV will only add about 10-15 high-def cable networks next year.

Why?

DIRECTV has to pay the programmers extra money to carry their high-def signals, something that it's loathe to do in a stagnant economy. (This is why DIRECTV has been battling with the Versus sports channel for the last three months; it doesn't want to pay Versus more money to carry its SD and HD signals.)

So instead of adding real channels, DIRECTV will keep costs down -- and appearances up -- by adding more PPV HD channels and other services such as 3-D HD broadcasts.

The satcaster will try to fool the public into believing that it's offering a lot more HD when actually it will largely just inflate its HD channel count with more PPV.

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