Dish Network: Satellite Failure Will Delay HDTV Rollout
Leased satellite failed to reach its proper orbit.
By Swanni
An SES Americom satellite (AMC-14), which Dish is leasing to expand its HD capacity, failed to reach its proper geostationary orbit on Friday.
Officials say they are confident they can still place the AMC-14 into its proper orbit, but even if successful, the procedures could shorten the life of the satellite.
Dish Network wants to use the satellite to expand its capacity for national HD channels from 76 to 100. The satcaster has said it will launch three new satellites in 2008 to expand both national and local HD capacity, with the AMC-14 being the first.
In SEC filings, Dish and sister company EchoStar said yesterday that the AMC-14 satellite failure would prevent it from offering more high-def channels. However, The Wall Street Journal reports that the satcaster would not elaborate on that statement.
Meanwhile, a prominent Wall Street analyst said the satellite failure could quickly lead to a subscriber decline.
"Having the most High-Definition has become a major source of competitive advantage for DIRECTV, which has used its HD superiority to appeal to high end subscribers," said Sanford Bernstein analyst Craig Moffett in a research note, according to the WSJ. "Dish has struggled with a lower end positioning, and has suffered consequently higher (churn rate)."
DIRECTV, Dish's satellite rival, now has 92 national HD channels and plans to offer up to 150 by year's end. Ironically, the company this week is having its own problems with a satellite launch, experiencing a delay yesterday. However, officials appear hopeful the launch will take place shortly.
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