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Commentary
DIRECTV & VOD: Who Are They Kidding?
The satcaster's new Broadband-enabled service is a no-starter.
By
Swanni
 
Washington, D.C. (July 18, 2008) -- DIRECTV's advertising campaigns often mock cable TV's claim that it has more 'HD choices" than satellite because of cable's Video on Demand service.

The DIRECTV campaign is justified in pointing out that the satcaster actually has far more HD channels than cable -- and that most consumers are not excited about watching high-def programs on demand; they want real channels, not choices.

So I would be remiss if I didn't point out that DIRECTV is now trying to play the same 'fool the consumer' game.

DIRECTV this month officially launched a Broadband-enabled Video on Demand service, which has more than 4,000 titles including about 150 in high-def.

In a recent article in Multichannel News, DIRECTV executive vice president Eric Shanks is quoted as saying that cable now no longer has an advantage when it comes to VOD.

“With our launch of our on-demand service, not only is cable playing catch-up in the (HD channel) world, they don’t have the differentiator of on demand any more,” said Shanks. "I'm not quote sure where they will head" now with their marketing efforts."

Well, let me help Mr. Shanks out.

All cable needs to do is explain to consumers how difficult -- how cumbersome -- how inconvenient -- it is to install DIRECTV's new Video on Demand service.

Don't believe me. Just read this little instructional paragraph from DIRECTV's own web site:

"To begin receiving the DIRECTV on Demand service, customers can choose professional installation or request a self-installation kit. Customers will need broadband high-speed internet access, a router or Internet gateway with an available Ethernet port, and equipment to network the HD DVR or R22 DVR. Options to connect the receiver to the internet include: Internet Connection Kit (HomePlug® networking device), Ethernet cable or wireless (requires external adapter)."

Does that sound easy to you? Convenient? Enticing?

Not to me.

Cable's On Demand service can be easily accessed by clicking on the On Demand channel and then scrolling through the menus until you find a show you want to watch. No special equipment is needed.

But DIRECTV's On Demand service requires a Broadband connection, a router or Internet gateway with an Ethernet port -- and God knows what else -- to just get started.


For most DIRECTV customers, that's a non-starter. You already have nearly 100 HD channels to watch so why on Earth would you go through a Mr. Science experiment just to get access to 150 additional high-def titles?

Answer; You wouldn't.

For marketing purposes, DIRECTV will continue to say that its new Video on Demand service is just as good as cable's, if not better.

But I say it's significant -- very significant -- that Shanks refused to tell Multichannel News how many customers are downloading shows via the On Demand service.

When a company is doing well, it releases the numbers. When it's not, it doesn't.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology. 

 
 
 
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