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Analyst: Rocket Blast Could Delay DIRECTV Local HDTV
But the Wall Street analyst says the satcaster should be able to offer dozens of national HDTV channels
By Phillip Swann
 
Washington, D.C. (February 1, 2007) -- DIRECTV said last night that this week's explosion of a Sea Launch satellite will not affect its HDTV plans. However, a Wall Street analyst today said it could force the satcaster to delay its rollout of local high-def channels.

DIRECTV is planning two satellite launches this year to expand its high-def lineup. The first one, a ground launch in June, should not be affected by the explosion. But the second one, from Sea Launch, could be delayed by the blast.

“On its own, DIRECTV-10 (the ground launch) should have sufficient capacity to deliver dozens of national HD channels, as recently promised at CES. It is likely that the launch of DIRECTV-11, which is scheduled for an ocean launch by Sea Launch, will be delayed, however," said Craig Moffett, a Sanford C. Bernstein analyst.

Moffett said the second satellite will be used to deliver local HD channels to more markets. DIRECTV began rolling out local high-def this year.


“Having to delay expanding their HD locals footprint is clearly a setback, but we believe the impact is likely to be relatively modest," Moffett said.
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A Sea Launch official said today that the impact of the blast to its operations would be minimal but he did not comment on whether it would cause delays in future launches. The rocket consortium was planning seven rocket launches this year, including one from DIRECTV and one from EchoStar.

DIRECTV spokesman Robert Mercer told TVPredictions.com last night that the explosion will not impact the satcaster's high-def plans. Mercer said he could not elaborate.


The Sea Launch rocket exploding on Tuesday.

DIRECTV announced this month at the Consumer Electronics Show (CES) that it would expand its national HDTV lineup to 100 channels by year's end. To accomplish that, it said it would launch two satellites to store the additional networks.

It's unclear if DIRECTV's ground satellite will have enough capacity to store 100 national HD channels. The satcaster has said the two satellites combined would have enough capacity for 150 national HD networks.

Mercer would not comment whether the first satellite could hold 100 national HD channels.

The Sea Launch Zenith 35L rocket -- the first of the company's six scheduled 2007 launches -- blew up Tuesday in a fireball aboard its platform. According to wire services, the booster was igniting its main engine when the rocket suddenly collapsed and was engulfed in flames.

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© TVPredictions.com
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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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