Commentary
Swanni Confesses: I Was Wrong
About DIRECTV!
By Swanni
Washington, D.C. (December 1,
2011) -- I was wrong about
DIRECTV. Dead wrong. And you know how it kills me to say that. I
hate admitting being wrong about something.
But I have to set the record straight.
On September 6 of this year, I wrote that DIRECTV would add more
basic cable channels in HD over the next six months. I made that
prediction right after the satcaster added AMC HD, the first
basic cable channel it had added in high-def in more than a
year.
Here's what I wrote:
"The DIRECTV team is smart enough to know that AMC HD alone will
not keep their customers happy. With many of its rivals now
carrying most basic cable channels in high-def, DIRECTV no
longer has the luxury to pretend that viewers don't care about
these networks being in HD.
So I predict that you'll see DIRECTV add more basic cable
channels in HD over the next six months. The satcaster is a
little short now in system space, but it will find room for
channels such as BBC America HD, Nat Geo Wild HD and E!
Entertainment HD.
In this competitive environment, DIRECTV has no other choice."
Well, recent statements by DIRECTV officials -- and the obvious
lack of action since the addition of AMC HD -- strongly
indicates that the satcaster doesn't feel like it has "no other
choice." In fact, it appears that DIRECTV is confident that the
mere addition of AMC HD will sufficiently appease high-def
viewers so they won't switch services.
Why do I say that? Two reasons:
DIRECTV CEO Mike White told Bloomberg News last month that the
satcaster is cutting spending in 2012, including spending on
programming. If you're cutting spending on programming, adding
HD channels (which often requires paying programmers extra fees)
is not a likely scenario.
The second reason? Since the addition of AMC HD, DIRECTV hasn't
even hinted that it will add another basic cable channel in HD.
While subscribers are demanding such HD additions as the ones
listed above -- and countless others -- DIRECTV officials have
not even commented on the possibility that they will add more.
The satcaster hasn't even commented on when (or if) it will add
TruTV HD, which it promised to do last spring by year's end.
There has also been no talk of DIRECTV launching a new satellite
to increase its HD capacity for its U.S. subscribers; the
satcaster plans to launch a new satellite for its subscribers in
Latin America, but not the U.S.
So, bottom line: DIRECTV is clearly not interested in adding HD
channels. The company seems to believe that adding AMC HD was
enough to keep high-def subscribers quiet. And it now wants to
focus on cutting spending and increasing profits (right, DIRECTV
executives who have profit-sharing plans?)
