Commentary
DIRECTV's Owner Calls
HDTV Viewers 'Desperate'
News Corp. executive says his company can get away with charging $25-30 to watch a single HDTV movie.
By Phillip Swann

Washington, D.C. (March 1, 2006) -- News Corp. President and COO Peter Chernin told a financial conference yesterday that his company is talking to cable and satellite operators about charging $25-30 to watch a movie in HDTV 60 days after its theatrical release.

Cable and satellite providers now charge less than $5 to watch an on-demand or Pay Per View film. Asked if the $25-30 cost seemed high, The Hollywood Reporter quotes Chernin as saying that some high-def owners would be "desperate consumers" because there is relatively little HDTV programming available on cable and satellite.

He noted that more than one million Americans last year spent more than $25,000 on Home Theater set-ups. Those viewers in particular, Chernin said, would be ideal targets for the high-priced HDTV movie.

Yes, there is relatively little high-def programming available. But who's fault is that?

Chernin's company is the controlling owner of DIRECTV, the nation's largest satellite TV service. However, DIRECTV has added only one high-def channel (TNT HD) in the last several months. Many DIRECTV owners have written me urging the satcaster to add more HD channels, such as Cinemax HD, Starz HD, MHD (MTV's new high-def network) and many others.

But it would seem that News Corp. executives are now more interested in price gouging than providing an affordable and diverse lineup of high-def programming. In their view, if they can keep high-def owners 'desperate,' then they will pay almost anything to watch a new video release in HD.

However, I predict that News Corp.'s scheme will fail miserably. High-def owners want more HD programming, but they won't be taken advantage of to get it.

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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.

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