Charter: HD & DVR Subs Up 50 Percent
The cable operator says it's increasing 'HD choices.'
By Swanni
Washington, D.C. (May 13, 2008) -- Charter Communications said yesterday that its HD and/or DVR subscription have jumped 50 percent in the last year.
The company made the disclosure in an analysts call following the release of its first quartet report.
Charter did not reveal how many subscribers are getting the advanced services, nor did it breakout the specific HD and DVR numbers.
The cable operator credited the increase, however, to what it calls a "robust" HD programming lineup, although it offers less than 30 high-def channels in most markets. Charter emphasized that it has expanded its On Demand service, which includes high-def movies and TV shows.
"Our video product is more robust than ever and we will continue to aggressively expand our HD and on-demand offerings which now include nearly 200 HD viewing choices..." said Charter president Neil Smit.
Charter also said that it will implement a new technology called Switched Digital Video in most systems by year's end, which will expand high-def capacity.
"We currently are trialing it in LA, have had good success there and also we continued to migrate analog to digital. We cleared up on the HD side, we currently have about 22.5 (HD) channels so as we continued to migrate analog to digital we free up bandwidth and dedicate it to HD," Smit said.
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Dish Network Trims Voom HD Lineup
The satcaster has threatened to remove the entire 15-channel suite.
By Swanni
Washington, D.C. (May 13, 2008) -- Dish Network last night trimmed the Voom High-Definition programming package from 15 channels to five.
The satcaster's decision to drop 10 Voom channels comes just hours after it added 20 other high-def channels.
The satcaster did not issue a press statement announcing the decision, but the channels were suddenly dropped last night. Dish's web site and programming lineup now lists just five Voom HD channels: Monsters, Rush, Equator, Kung Fu, and Rave.
And on Dish's channel 9472, the following statement appears:
"As of result of these additions (20 new HD channels), we removed some channels that are less popular with our customers. These channels are not available with any other satellite provider."
The decision to reduce the number of Voom channels is not unexpected. The Supreme Court of New York last month denied Voom's request for a preliminary injunction to block Dish Network from terminating its agreement to carry all 15 high-def channels.
The satcaster informed Voom last year that it would move the 15 HD channels to a less watched programming tier. Voom objected to the plan, saying it would reduce its programming fees and jeopardize its business. Following a series of negotiations, Dish informed the programmer that it planned to terminate the agreement entirely, which led to the court battle.
Although the Voom channel reduction is not unsurprising, the timing is. Dish Network yesterday announced it was adding 22 high-def channels this week, starting with the 20 on Monday. In the announcement, the company said the new channels means that Dish would now have "over 95 HD channels."
However, the Voom reduction now would appear to lower that number to the mid-80s.
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Wal-Mart Carrying $298 Blu-ray Players?
The players reportedly are manufactured by Funai.
By Swanni
Washington, D.C. (May 12, 2008) -- Wal-Mart is reportedly selling a $299 Blu-ray player in select stores, roughly $100 off the previous entry-level price of the high-def disc player.
According to the web site, Blu-ray.com, $298 Blu-ray players are showing up on shelves of certain Wal-Mart stores under brand names such as Magnavox and Sylvania.
However, the players apparently are coming from manufacturer Funai, which has been rumored for months to be working on a low-cost Blu-ray player.
Funai, a Japanese company, is known for manufacturing low cost electronics products, which often pressure the industry to lower prices for name brand devices.
A message thread at Blu-ray.com says the $298 player supports the new Profile 1.1 BD, which offers Picture-in-Picture features.
Sony and other well-known Blu-ray manufacturers have said their prices will likely stay around $399 for now. However, the introduction of a $298 Blu-ray player could change that in the coming months.
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Dish Network to Add 22 HD Channels
The satcaster says it will offer 95 high-def channels.
By Swanni
Washington, D.C. (May 12, 2008) -- Dish Network says it will add 22 High-Definition channels this week, starting with 20 today.
The satcaster says the launch will expand its high-def lineup to 95 national channels, roughly the same number as offered by rival DIRECTV.
The new channels that will be added today are:
ABC Family HD; Biography HD; Bravo HD; Cartoon Network HD; Cinemax 5 Star HD; Cinemax HD West; CNBC HD; CNN HD; Disney HD East; ESPNews HD; Hallmark Movie Channel HD; MGM HD; Sci-fi Channel HD; Smithsonian HD; Tennis Channel HD; Toon Disney HD; Travel Channel HD; USA Network HD; Weather Channel HD; and World Fishing Network HD.
Dish Network says it will also add Comcast Sports Network Bay Area HD and Comcast Sports Network New England HD on Wednesday, May 14.
"We are excited to extend our competitiveness in HD by enhancing our already comprehensive HD lineup with these 22 channels, bringing our total HD lineup to over 95 channels,'' said Eric Sahl, senior vice president of Programming for DISH Network. ``These launches, along with other recent additions such as the New England Sports Network (NESN) HD, reinforce our commitment to offer the best in entertainment.''
Dish Network said in January that it would offer 100 national HD channels -- and local high-def channels in 100 markets -- by year's end.
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Will CBS Air All NFL Games IN HD?
The network is vague, according to a report.
By Swanni
Washington, D.C. (May 9, 2008) -- CBS may not broadcast all National Football League games in High-Definition this season, according to HD Sports Guide.
The web site, which compiles listings of sports programs in high-def, says a CBS official tells it that the network's coverage "will most likely be in the neighborhood of 6-7 games/week in HD."
The network, which airs up to seven American Football Conference games a week, last season provided 5-6 games a week in high-def, often airing one or two games in standard-def.
The decision irked many football fans, particularly those in cities which received the SD broadcasts.
CBS said in 2006 that it hoped to provide all games in high-def by the 2008 or 2009 season. Fox has committed to airing all National Football Conference games in HD this season.
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News & Commentary
Feds: We Could Re-Issue Digital TV Coupons
But the agency refuses to commit to doing so.
By Swanni
Washington, D.C. (May 9, 2008) -- Meredith Baker Attwell, acting chief of the National Telecommunications and Information Administration, said yesterday that her agency has the authority to allow Americans to reapply for Digital TV converter coupons.
However, Attwell refused to say whether the agency would actually do so, according to an article by Broadcasting and Cable Magazine.
On February 17, 2009, all full-powered local stations must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to watch television.
The feds are offering two $40 coupons for consumers to buy the converter boxes, which cost around $60. The boxes will enable an analog TV to display the new digital signals. However, consumers must use the coupon within 90 days after receiving them.
Several senators have urged the NTIA to allow consumers to reapply for the $40 coupons if they fail to use them in the 90-day period. The lawmakers are concerned that millions of people will lose their TV signals because they won't have converter boxes.
Although the first converter coupons issued by the NTIA will expire in the next several weeks, Attwell said her agency first needs to study whether the 90-day period should be extended.
“We can change it," she said, according to B&C, "but there would have to be a notice and comment period."
Attwell said the NTIA wants to examine how many people have redeemed the coupons to date.
Commentary:
Although the Digital TV transition is less than 300 days away, the acting NTIA chief is acting more like it's 300 years. Many consumers will soon see their converter coupons expire and Attwell will only say, in effect, 'Yes, we could allow you to reapply, but, sorry, we can't tell you whether we will.'
I understand that consumers should redeem the coupons now, but folks, we're talking about human nature here. People don't do anything until they have to. Many Americans, particularly seniors, will wait until the eve of the transition before trying to redeem those coupons. But the NTIA won't say whether they will allow them to do so.
Attwell's remarks are typical of the federal government's lack of urgency on this issue. If the feds really want this transition to work, it better change course and soon.
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DIRECTV: 41 Percent Have HD And/Or DVRs
The satcaster says its new high-def satellite will be ready in the third quarter.
By Swanni
Washington, D.C. (May 8, 2008) -- DIRECTV says that seven million customers now subscribe to a High-Definition and/or Digital Video Recording service.
That number represents 41 percent of the satcaster's total audience of 17.04 million subscribers. DIRECTV reported a year ago that approximately 30 percent of its audience was subscribing to an HD and/or DVR service. (DIRECTV does not break out statistics for individual high-def and DVR subscribers.)
The rise in 'advanced service' subs can be credited to DIRECTV's decision to expand its high-def programming lineup. The satcaster last fall had just nine national HD channels, but has since increased that total to 95.
DIRECTV HD and DVR customers spend nearly $100 per month on programming packages, which is more than 50 percent greater than a non-HD/DVR customer, according to DIRECTV CFO Patrick Doyle.
DIRECTV made the subscriber disclosure yesterday in an investors call following its first quarter report which showed a net increase in subscribers of 275,000.
In addition, the company's U.S. revenues rose 14 percent in the first quarter to $4 billion and the average monthly revenue per subscriber increased 8.6 percent to $79.70.
In other HD-related remarks during yesterday's investors call:
Refurbished Set-Tops
* DIRECTV has increased the number of 'refurbished' set-tops in its HD and DVR lease program, allowing the company to reduce spending on the set-top program.
New HD Satellite
* DIRECTV's new HD satellite, which was launched in March, will be ready in the third quarter. At that time, DIRECTV says it will have the capacity for 150 national HD channels.
More HD/DVR Subs
* By 2010, 70 percent of its audience will subscribe to an HD and/or DVR service. "I think things like a DVR will become just like a VCR or a DVD player was in a home and become a mainstream part of an experience, as will HD," said DIRECTV CEO Chase Carey.
Video On Demand
* DIRECTV's new Broadband-enabled Video on Demand program is years away from having an impact on the average revenue per subscriber (APRU). "I think VOD continues to be probably a longer term proposition...I think VOD will continue to grow but I think it will grow over a longer timeframe. Customers need to understand and start to use it."
TiVo
DIRECTV is "not doing a lot" in regard to expanding its relationship with DVR service TiVo, says CEO Carey. The executive said the company is now focused on deploying company-owned DVRs for new services, such as VOD and home networking. (DIRECTV pulled the plug on its marketing relationship with TiVo a few years ago, but still offers service for existing TiVo/DIRECTV set-tops.)
"I think we have a constructive relationship (with TiVo)," said Carey. "We are not doing a lot in all honesty but I think we have an honest dialog that I think is sincere about seeing if there are things that make sense for us."
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NAB to Bush: Wake Up On Digital TV!
The broadcasters group urges the president to get involved in consumer education.
By Swanni
Washington, D.C. (May 7, 2008) -- The National Association of Broadcasters is urging President Bush to help inform Americans about next year's Digital TV transition.
On February 17, 2009, all full-powered local broadcasters must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to continue watching television.
However, congressional leaders and industry analysts have expressed concern that millions of Americans are still not aware of the transition and therefore could lose their signals when the switch occurs.
In a letter sent yesterday to the president, NAB CEO David Rehr reminded Mr. Bush that the Digital TV transition is now less than 300 days away.
He urged the president to consider several new DTV educational initiatives such as the creation of a Digital TV postage stamp and including DTV transition flyers along with Social Security checks.
Rehr also suggested that the president, or Vice President Dick Cheney, participate in a TV ad spot on the DTV switchover.
"We are respectfully requesting your assistance in informing American households about the transition," Rehr said in the letter.
The NAB chief added that technology companies worldwide spent billions of dollars to ensure that the Y2K changeover went smoothly in the year 2000.
"We will need a similar effort of such scale for the DTV transition to succeed," he told the president. "The DTV transition will fundamentally change the way the American people get news about their communities, emergency situations and entertainment. We want to enlist the help of the federal government and the Administration to ensure that happens as seamlessly as possible."
Swanni Sez/Commentary:
The fact that we're less than 300 days away from the transition and the NAB chief now feels compelled to urge the president to get involved speaks volumes about how serious this problem is. It also underscores just how poorly the government has prepared for the transition. Rehr's letter reads as if he not's certain that President Bush himself is aware of the switchover.
Good luck to us all on February 17, 2009.
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DIRECTV: HDTV Driving Sub, Revenue Increase
The company releases its first quarter report.
By Swanni
Washington, D.C. (May 7, 2008) -- DIRECTV today credited an expanded High-Definition programming lineup with increasing its revenue and subscriber totals in the first quarter.
The satcaster, which has increased its national HD lineup from nine to 95 channels in the last eight months, said net subscribers jumped 275,000 in the first quarter; that's a 17 percent increase from last year's first quarter.
DIRECTV now has 17.04 million subscribers, a five percent increase from this time last year.
In addition, the company's U.S. revenues rose 14 percent in the first quarter to $4 billion and the average monthly revenue per subscriber increased 8.6 percent to $79.70.
DIRECTV also said its first quarter monthly 'churn rate' was 1.36 percent, the lowest in 10 years.
"The increased demand for DIRECTV services was primarily driven by our industry-leading content, HD, DVR and interactive services, as well as strong results from our direct sales channel," said DIRECTV CEO Chase Carey.
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Disney: Blu-ray Needs Lower Player Prices
The company executives say $300 players are coming soon.
By Swanni
Washington, D.C. (May 7, 2008) -- Disney's top executives yesterday said that Blu-ray high-def disc player sales will begin to rise when prices start to fall.
In an investors call yesterday following the company's first quarter report, Disney CEO Robert Iger said the penetration of Blu-ray players is still "relatively modest." (Industry reports indicate that fewer than 10 million U.S. homes now have Blu-ray players, even when you include the Play Station 3, which has a Blu-ray player inside.)
But Iger added that the company sees Blu-ray "growing nicely, particularly as the cost of the players comes down."
The lowest-priced Blu-ray player is now $399, but Iger said "you'll be seeing a lot more $300 (players) and less inventory in terms of player costs of the shelves."
He added: "The real impact from Blu-ray will be felt down the road...We're believers because of the quality of the experience but it is going to take some time for the platform to penetrate the marketplace."
Blu-ray makers were offering some players in the $300 range during the 2007 holidays when the high-def format war against HD DVD was ongoing. However, after Toshiba pulled the plug on HD DVD, the companies raised Blu-ray entry-level prices back to $399.
Disney CFO Thomas Staggs predicted yesterday that Blu-ray will start to have a serious impact on studio revenues after the 2008 holidays. The company plans to release several blockbuster movies on Blu-ray this year, including Nemo and Sleeping Beauty.
"Overall, total (Blu-ray disc sales) are going to be probably more in the low-single-digit range because less Blu-Ray (is) on catalog sales right now but...we think that’s going to continue to grow and especially as you get passed the next holiday season, it can be a more important component of the whole thing," Staggs said.
Iger hinted that Blu-ray disc prices could come down as more people buy players.
"The cost of the Blu-Ray DVD in the market or on the shelf to the consumer is running a few dollars higher (than standard-def DVDs) and that obviously bodes well for us, although as it penetra
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Dish Adds 24-Hour Limit to PPV Movies
The move follows a similar decision by DIRECTV.
By Swanni
Washington, D.C. (May 6, 2008) -- Dish Network today will begin requiring subscribers to view a PPV movie within 24 hours after they order it on a Digital Video Recorder.
That's according to an article by Multichannel News.
The new policy will apply to both high-def and standard-def movies.
The 24-hour clock will start the minute the film is ordered, meaning that a subscriber will be unable to watch it a day later.
However, you can still record a PPV movie on a DVR without ordering it at the time of the recording. This allows you to order it only when you decide to watch it; the 24-hour clock starts after the customer purchases the movie.
Dish Network's 24-hour limit follows a similar action last month by DIRECTV, which said the studios have demanded the change due to piracy concerns.
DIRECTV says that special PPV events, such as sports, will not be affected by the new policy.
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Is Voom Doomed On Dish Network?
The high-def programming suite loses an injunction against the satcaster.
By Swanni
Washington, D.C. (May 6, 2008) -- The Supreme Court of New York last month denied Voom's request for a preliminary injunction to block Dish Network from terminating its agreement to carry its 15 high-def channels.
That's according to court documents obtained by the web site, DBSTalk.com.
The decision leaves Voom's fate on Dish Network in doubt. While Dish Network is now offering Voom in its 19-channel Ultimate HD package, court papers show that the satcaster intended to remove Voom from its lineup entirely before the lawsuit was filed.
Dish contends that Voom has failed to spend $100 million annually on the 15 high-def channels as stated in their affiliation agreement. Based on that contention, the satcaster informed Voom last year that it would move the 15 HD channels to a less watched programming tier.
Voom objected to the plan. Following a series of negotiations, Dish informed the programmer that it planned to terminate the agreement entirely. That's when Voom decided to file the lawsuit and injunction request, which the court rejected on April 23.
The court said Voom failed to show that it satisfied the spending requirement in the affiliation agreement.
It is uncertain if Voom will appeal last month's court decision. The programmer said in court papers that Cablevision is the only other TV provider that carries its 15 channels, adding that DIRECTV's "business plan" does not call for the addition of its 15-channel block.
EchoStar, the sister company of Dish Network, actually owns Voom's satellite and has an equity stake in Voom's 15-channel programming suite which includes several niche channels on subjects such as horror films, international sports and antiques.
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Microsoft: Not Credible On Blu-ray Issues
The company denies plans for a Blu-ray player, but it can't really be believed.
By Swanni
Washington, D.C. (May 5, 2008) -- Microsoft has denied the latest report that it's planning to add a Blu-ray player to its XBox 360 video game console.
That's according to an article by the web site, GamePro.
Economic Daily News reported last week that Pegatron Technology has received an order from Microsoft to manufacture XBox 360 consoles with Blu-ray players inside. The report said the new consoles would be shipped in the third quarter.
Microsoft was a strong supporter of HD DVD -- Blu-ray's rival in the high-def disc format war -- and even sold a HD DVD player attachment for the box.
However, since Toshiba announced in February that it was pulling the plug on HD DVD, occasional rumors have surfaced that Microsoft would put a Blu-ray player in a future XBox console. And Microsoft has denied each rumor, including, now, the most recent one.
"As we have stated, we have no plans to introduce a Blu-ray drive for Xbox 360," a Microsoft official said in an email to GamePro on Monday. "Games are what drive consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available."
Sales of the Sony-owned Play Station 3 has risen since Toshiba's exit from the HD DVD business. The PS3 has a Blu-ray player inside.
Commentary:
It's not surprising that Microsoft is denying the rumor, but the denial is not credible. Since the advent of the high-def format war, Microsoft has issued numerous statements which have been in conflict with each other. For instance:
* For nearly two years, Microsoft said HD DVD would win the format war because of its technological superiority. But in January 2008, Microsoft Chairman Bill Gates suddenly said the company was "actually neutral" in the format war. This statement came after Warner Bros. decided to endorse Blu-ray over HD DVD.
* In January 2008, a Microsoft XBox group manager told EETimes that it might consider adding a Blu-ray player if HD DVD pulled out. The company later reversed that by saying the remarks were taken out of context.
* Aaron Greenberg, a different XBox group product manager, told Reuters in March that there were no plans to offer Blu-ray with the XBox and that the companies were not in discussions for a Blu-ray device. But Microsoft CEO Steve Ballmer told an industry conference a few days later that the company would support Blu-ray "in ways that make sense."
* In March 2007, Neil Thompson, Microsoft's European senior regional director, said the XBox could support Blu-ray at some point. “Whatever format wins it is highly likely we will offer a solution," Thompson said in an interview with the BBC. "The only debate is if you want to watch Blu-ray movies and pay the extra money for that feature. We prefer to offer the consumer choice.”
As you can see, Microsoft has been all over the map on this topic, saying what appears to be most convenient and helpful at the time. That doesn't mean with certainty that it will add a Blu-ray player to the XBox 360. But it does mean that the company can not be believed no matter what it says.
At this point, it's wise for Microsoft to deny the Blu-ray rumors. Some people might wait to buy an XBox until the new Blu-ray console is introduced. And Microsoft doesn't want people hesitating about buying an XBox -- particularly now with PS3 sales rising.
So, with Microsoft, it's best to wait and see -- with the word, "see" being the most operative one.
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Blu-ray: The Resentment Factor
The channel will feature crime programming.
By Swanni
Washington, D.C. (May 5, 2008) -- A friend of mine loves his High-Definition TV, particularly when watching movies. So you would think he would be a likely buyer of a new Blu-ray high-def disc player.
Think again.
"I've been collecting DVDs for almost 10 years," he says. "I'm not going to spend money replacing them with a new format. You can forget it."
I've explained that he can watch his standard-def DVDs on a Blu-ray player. In fact, the Blu-ray's upconverting feature will improve the picture. But that's not the point.
"They're always trying to get you to spend money on something new, making what you have obsolete. I'm tired of it," he said.
Industry analysts, including yours truly, often note that Blu-ray's biggest obstacle to success is the standard-def DVD player. Millions of people have one and have yet to see a compelling reason to buy a Blu-ray player to watch movies at home, particularly with Blu-ray player prices at $399.
In time, that barrier will start to come down when people experience the Blu-ray picture, perhaps at a neighbor's home or at the local electronics store. Lower prices and that picture, which is dramatically better than a SD DVD image, will trigger serious sales.
But I suspect there's a deeper emotional reason for why some people will cling to their SD DVD players for years to come -- even when Blu-ray player prices fall to $200 or lower.
They are simply tired of being jerked around; tired of constantly being told they must buy the next new thing because their current device will soon be obsolete. They've invested considerable time and money in that device, but the industry is telling them that it will soon be a big waste.
In the case of Blu-ray, the current premium price for new movie releases -- usually $10-15 more than SD DVDs -- just reinforces this resentment.
"You're telling me that I have to replace my old DVDs with new discs -- and they cost more?" my friend says in disbelief.
Of course, again, he doesn't have to replace his new movies, but it's the principal. In his mind, the industry is just trying to force him to pay more -- more for the player and more for the discs themselves. That's a tough sell, particularly in a sluggish economy.
As Blu-ray companies expand their efforts to replace the SD DVD, they might want to keep that in mind.
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Celebrities in HDTV: Five Years Later
It appears that my observations have created quite a stir.
By Swanni
Washington, D.C. (May 2, 2008) -- Five years ago this month, I called TV Week Managing Editor Tom Gilbert to get his advice on a column idea. (I was then writing a weekly column for the trade magazine.)
Tom, I said, I want to write about how some Hollywood celebrities look horrible in high-def. The picture is so clear, I explained, that you can see them as they look in real life -- and many simply don't look very good.
At the time, no one had written about this odd angle, in part because so few people had high-def sets at the time. So I half expected Tom to reject the idea on grounds that it would be a bit crass, perhaps even a bit cruel if I mentioned which actors and actresses did not fare well under the unforgiving HD lens.
But Tom said, "Sure, go for it."
And so I did.
Click to read Swanni's original TV Week column
Five years later:
* My observations on how celebrities look in high-def have been featured in (literally) thousands of publications and on countless television and radio shows;
* Celebrities have spoken openly about how they are frightened of appearing in HD and news reports say some stars simply won't show up for a live high-def broadcast.
* Cosmetic companies have sprung up, offering HD make-up solutions;
* Perhaps hundreds (perhaps more) of local broadcasters and actors have crammed doctors' offices in search of Botox treatments and various facial surgeries, saying HD is the reason.
* And the TV networks have invested heavily in camera filters and other tricks to try to soften the stark reality of HD.
Based on Swanni's comments, Cameron Diaz is often cited in media reports as a celebrity who fares poorly in high-def.
Now, I am not lobbying for a Pulitzer or anything, but it appears that my writings have created quite a stir. The issue of celebrities in HD arguably has become the most talked about topic in the category.
But is that a good thing?
People often ask me that question, along with, "Don't you feel bad writing about how people look bad?"
They ask that a lot.
But the answer to both is: Yes and no.
I would argue that many Americans (particularly women) first heard about high-def by reading a story in their local paper about celebrities in HD. It probably piqued their interest and perhaps led to them buying a new set.
I think it's also helpful for people to know that not all "beautiful" people are actually that beautiful. Over the years, celebrities have used air brushed photos and fuzzy analog cameras to create the perception that they are flawless.
This perception, I submit, has contributed to some insecurity issues, particularly among young women who have tried to measure up to that manufactured ideal.
Knowing that they might look just as good as their favorite stars should give them some comfort.
However, speaking of insecurity, having lived in Los Angeles for five years, I know that many actors and actresses are extremely insecure and they probably have been hurt by my comments about their skin imperfections and other flaws. In fact, since the initial TV Week column, I have occasionally been contacted by agents and, yes, actors complaining about my descriptions.
And I'm human so I do feel their pain, if you will. But at the same time, I try to remind everyone that my remarks are purposely excessive to entertain the reader. People shouldn't take them personally, or too seriously. It's a humor piece, albeit based on my factual observations.
But the bottom line is that I'm just a writer who enjoys telling the world what I see. For that reason, the odds are good that five years from now, I will be writing about the 10th anniversary of my TV Week column -- and how some actress looks worse in high-def than you might think.
See, Tom Gilbert, it's your fault.
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Time Warner Goes 'Day & Date' For VOD
Movies will be released the same day as the DVD.
By Swanni
Washington, D.C. (May 2, 2008) -- Time Warner has decided to release all Video on Demand titles on the same day they are available on DVD in video stores.
The VOD titles will include some movies in High-Definition.
Time Warner CEO Jeff Bewkes made the disclosure Wednesday in an investors call following the company's first quarter report.
The company has tested 'day & date' video releases on Comcast and its cable unit, Time Warner Cable. Bewkes said the experiment has been so successful that it's time to make it across the board.
The decision is likely to be controversial with video retailers claiming it would hurt their business. Without the head-start traditionally given to DVD releases, consumers may opt to buy the VOD movie instead, particularly if it's available in high-def.
Bewkes, however said DVD sales were up during the 'day & date' trial, albeit slightly, suggesting that some VOD purchasers are buying the hard disc after watching the movie at home.
Time Warner must work out some 'day & date' with cable and satellite providers before it's implemented so Bewkes did not give a launch date.
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Microsoft's Blu-ray XBox Coming In September?
New report says the order has been placed.
By Swanni
Washington, D.C. (May 2, 2008) -- Microsoft has placed orders for an XBox 360 console with a Blu-ray disc drive, according to the Chinese-language Economic Daily News.
The newspaper says the console is expected to ship in the third quarter of this year.
Microsoft was a major supporter of the Blu-ray rival, HD DVD, in the high-def disc format war, offering an HD DVD player attachment for the popular XBox.
However, since Toshiba announced in February that it was pulling the plug on HD DVD, rumors have persisted that Microsoft will include a Blu-ray player inside a new XBox edition.
Economic Daily News writes that Microsoft has placed orders with Pegatron Technology to build the Blu-ray XBox.
Microsoft has denied past reports of an upcoming XBox with Blu-ray, but there was no comment on this new article from the Economic Daily News.
If the report is true, the new XBox could dramatically help boost sales of Blu-ray discs. XBox's gaming rival, Sony's Play Station 3, now has a Blu-ray player inside.
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Comcast: No HD For Virginia Town
Colonial Heights cable viewers have to install off-air antennas for high-def channels.
By Swanni
Washington, D.C. (May 1, 2008) -- Comcast has been battling with DIRECTV and Dish Network over which TV provider offers the best High-Definition programming lineup.
However, in the town of Colonial Heights, Virginia, population 16,897, the battle is already over without a shot being fired.
Why?
Comcast does not offer one high-def channel in its programming lineup in Colonial Heights, which is located near Richmond. Not a local network. Not HBO. Not ESPN. Not a single one.
Consequently, Comcast subscribers in Colonial Heights must install antennas to at least get their local channels in HD.
Comcast does provide HD programming in Chesterfield County, which is just north of the small southeastern Virginia town. But nothing in Colonial Heights.
In the channel 200s, where Comcast usually positions HD channels, Colonial Heights residents can choose from a variety of premium movie channels, all in standard-def.
TVPredictions.com was alerted to the Comcast HD shutout in Colonial Heights by an area reader. He had read our article earlier this week on Comcast's efforts to expand its high-def lineup in Northern Colorado from 14 channels to 29.
"I read your article about N. Colorado adding HD channels to their line-up. Well I live in VA, and Comcast in my area offers 0 HD channels, no VOD, nor digital voice," he wrote. "Upon numerous calls to Comcast, no one knows if/when we'll ever get them. Stop feeling sorry for small towns who only have 14 channels.. give me a break."
TVPredictions.com confirmed his account by calling Comcast's office in the Colonial Heights area. A woman who answered the telephone said she didn't know when -- or why -- the cable operator did not offer high-def channels to its Colonial Heights subscribers.
Contacted yesterday by TVPredictions.com, Comcast national spokeswoman Jenni Moyer said in an e-mail that she would have to look into it. She has not responded back since that message.
The reader who contacted us said: "Phone operators just say not available, technicians I've seen on the street say something about a 'plant re-build', for at least a year and a half now."
The lack of HD channels in Colonial Heights is more evidence that high-def is still in its infancy in many parts of the U.S. Some cable operators, particularly small ones, have yet to invest in serious upgrades to expand capacity for HD programming or, in the case of Colonial Heights, even offer HD programming.
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Study: HD DVD's Exit Hasn't Helped Blu-ray
NPD Group says sales fell from January to February.
By Swanni
Washington, D.C. (May 1, 2008) -- Despite the end of the format war, Blu-ray standalone players have not generated much enthusiasm from consumers.
That's according to a report from the NPD Group, as reported by the Associated Press.
Toshiba announced in mid-February that it would pull the plug on HD DVD at the end of March, ceding victory to Blu-ray in the high-def disc format war.
But NPD says sales of standalone Blu-ray players (not including Play Station 3 consoles) fell 40 percent from January to February in the U.S. Blu-ray sales increased two percent from February to March. (The AP reports that NPD did not release exact sales numbers.)
"When we surveyed consumers late last year, an overwhelming number of them said they weren't investing in a new next-generation player because their old DVD player worked well and next-generation players were too expensive," said Ross Rubin, director of industry analysis at NPD. "It's clear from retail sales that those consumer sentiments are still holding true."
The lowest-priced Blu-ray player now retails for around $399, compared to
However, sales of the Play Station 3, which has a Blu-ray player inside, almost doubled in March, compared to last year's sales totals.
Commentary:
Despite some wide-eyed, open-mouthed reports today from the media, the NPD Group's report is not surprising at all for three reasons:
1. Most consumer electronics products experience declining sales from January to February. If you so desired, you could say that almost any CE product is suffering from declining sales -- if you only used sales figures from those months.
2. Following HD DVD's exit, Blu-ray manufacturers decided to raise standalone player prices to $399 or more. (During the format war, some retailers were offering them at around $300.
They did so because of limited supplies and a general sentiment that prices had fallen too fast during the format war. In my view, the decision was dumb -- it served only to depress interest and stifle Blu-ray's momentum following the format victory. But, nonetheless, that's a major reason why standalone players have not jumped after the HD DVD defeat.
3. Sales of the PlayStation 3, which has a Blu-ray player inside, have boomed since HD DVD's exit, further depressing standalone player sales. Many consumers who decided to buy a Blu-ray player after the HD DVD exit probably decided to buy a PS3, which retails for $399, the same as the standalone player.
So when you add it up, it's not surprising that standalone player sales have not jumped. Prices have gone up; February and March are not strong CE sales months; and the standalone player is competing with the now incredibly popular PS3.
It's also silly to suggest that Blu-ray somehow is not kicking into gear. Home Media Magazine reports that Blu-ray jumped 351 percent in the first quarter, compared to last year's first quarter. And, again, the PS3 is on fire.
Plus, I predict that Blu-ray player prices will start to fall again in the fall and during the 2008 holiday season. That's when Blu-ray will really start to take off.
Yes, it will be years before it replaces the standard-def DVD -- but that day will come.
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Time Warner: 3.4M HDTV Subscribers
The cable operator says the first quarter sub increase set a company record.
By Swanni
Washington, D.C. (April 30, 2008) -- Time Warner Cable says it now has 3.4 million High-Definition subscribers, representing 41 percent of its digital cable audience.
The cable operator made the disclosure today in an investors call following the release of its first quarter report.
Time Warner said HD customers increased by 418,000 in the first quarter, the highest increase ever for the company in one quarter.
Company CEO Glenn Britt also said that Time Warner Cable now offers more than 50 high-def channels in some markets and that capacity will soon no longer be an obstacle to expanding local HD lineups.
Time Warner is installing a new capacity-increasing technology called "Switched Digital Video."
"Once we have switching we can essentially add all the HD channels we can get our hands on," Britt said. "And so the gaiting factor is how many HD channels are really available as opposed to various marketing hype. Are they really available in a way that we can give them to customers? Then we have to have contracts for them and then launch them. So I think you should assume capacity is not the constraint -- it’s getting channels and signing contracts."
Britt added that some high-def channels may not be "terribly attractive" to consumers so Time Warner will not add them. He did not name specific channels.
"We are going for programming that we think consumers want," Britt said. "So since we are not trying to market by bragging about the number of channels, we’re going for quality, you may see a difference in our advertising versus some other competitors. But rest assured we are going to have everything that people really want."
Britt's comment was an apparent reference to DIRECTV's marketing campaign which says the satcaster has the most high-def channels with 95.
Time Warner COO Landel Hobbs said the company expects that 50 percent of its digital cable customers will subscribe to high-def by year's end.
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Does DIRECTV Have Room For Fox News Channel HD?
The high-def channel will launch tomorrow.
By Swanni
Washington, D.C. (April 30, 2008) -- Fox News Channel will launch a HD simulcast channel tomorrow and it would seem that DIRECTV would be a top candidate to carry it.
Afterall, the satcaster's former corporate parent, News Corp., owns the Fox News Channel and a DIRECTV official privately told TVPredictions.com last year that the company would carry Fox News Channel HD when it launched.
However, in yesterday's announcement from Fox, the network said Time Warner Cable would carry the new high-def channel in parts of New York and Texas.
There was no mention of DIRECTV. Zero. Zilch. (There was also no other TV provider mentioned.)
So, what gives?
Well, things have changed since last year when DIRECTV was rolling out dozens of new national HD channels, eventually bringing its total to 95. Despite boasts of having more HD capacity than cable, DIRECTV is now running out of satellite space.
That's why the satcaster has added just a handful of new HD channels this year -- and it's why it's careful not to discuss adding more channels until a new satellite is operational this fall.
The capacity problem was dramatized earlier this year when DIRECTV and Crown Media Holdings, the parent company of the Hallmark Movie Channel, announced that the satcaster had secured the rights to carry the new high-def version of the movie channel.
However, although Hallmark Movie Channel HD launched on April 2, DIRECTV has yet to add it.
So, as much as DIRECTV would like to add Fox News Channel HD, it would not be surprising if the channel is missing from the satcaster's high-def lineup for some time to come.
Final note: DIRECTV last year made several pre-launch announcements for new HD channels. But this year, the company has been mum about new channels until they are actually launched.
Times have changed.
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Washington, D.C. (April 29, 2008) -- Scarlet, I don't give a damn.
You couldn't blame Hollywoodians for repeating Clark Gable's famous line from Gone With the Wind after last night's 'Scarlet' hoax perpetuated by LG Electronics.
Over the last few weeks, the CE company has planted rumors of a hot new TV show called Scarlet that would star model Natassia Malthe as a sexy secret agent.
LG ran ads at several web sites, started a web site, and even bought billboards in Los Angeles and Paris, according to the Associated Press. The company was not mentioned in the online ads or the billboards.
The secret behind the mysterious show was supposed to be revealed last night at an invitation-only screening at the Pacific Design Center in Los Angeles. Celebrities such as Lindsay Lohan and Paris Hilton packed the venue to catch a sneak peek.
However, as it turns out, Scarlet is actually the name that LG is using for its new superslim LCD flat-screen set. The screening was for a commercial starring the television.
“We’re obviously trying to fool people, but it’s done in a fun and engaging sort of way,” Tim Alessi, LG director of product development and advertising, told the AP.
However, one message board poster at Yahoo! Answers may have echoed the comments of last night's attendees:
“I think that it's terrible to trick people to sell something,” said the poster, according to AP.
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ABI Research: Wrong Again On Blu-ray
The research firm doesn't have a good track record on the high-def industry.
By Swanni
Washington, D.C. (April 29, 2008) -- On January 24, 2007, ABI Research said LG Electronics' new $1199 dual-format HDTV DVD player would end the war between Blu-ray and HD-DVD.
"We believe that universal players will come to dominate the High-Definition DVD player market," said Steve Wilson, ABI's principal analyst of consumer electronics.
ABI, a research company based in New Yori, forecast the sale of 2.4 million dual format players in 2007, rising to a whopping 55 million in 2011.
On January 24, 2007, this is what I wrote here at TVPredictions.com in response to ABI's report:
"ABI's forecast is way too optimistic. At $1199, the LG player is cost prohibitive for most Americans and it's unlikely that the price will fall 'dramatically' for a few years at least. And when prices actually reach the $200 level, the marketplace may have already determined a winner in the format war, which would make the dual player all but obsolete."
I bring this information to your attention because ABI has done it again. The company today issued a press release saying that it will 12-18 months before the Blu-ray "kicks into gear."
"Consumer electronics manufacturers need to introduce full-featured (Blu-ray) players and then get prices down to the $200 level," ABI said. "Until then, non-HDTV owners will certainly favor standard definition DVD players. A depressed economy in the United States could also lead HDTV and prospective HDTV owners to opt for upconverting standard players as they delay buying higher-ticket CE items. In addition, Blu-ray packaged media comes at a heavy premium over standard DVDs, although studios have brought prices down to the low $20-range for some titles."
ABI's facts are not in dispute here. But its timetable is. The Blu-ray industry is already "kicking into gear" with sales up 351 percent in the first quarter of 2008. Millions of consumers who were waiting for an end to the format war are now contemplating buying a Blu-ray player.
Additionally, Blu-ray player prices will likely approach the $200 level this holiday season, which will give the high-def disc format another major sales boost.
While I agree that Blu-ray is years away from replacing the standard-def DVD, the process has begun.
Like other research firms such as Screen Digest and Adams Media Research (both of whom predicted in 2007 that both Blu-ray and HD DVD would be around for years; I predicted in 2006 that Blu-ray would win the format war relatively quickly), ABI doesn't have a strong track record of forecasting the high-def disc industry.
You might want to keep that in mind when you need guidance on this industry.
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Blu-ray's Clinton/Obama Problem
The high-def format winner has left some bitter foes behind.
By Swanni
Washington, D.C. (April 29, 2008) -- When two sides engage in a long and contentious battle in which only one can win, it leaves a bitter taste in the mouth of the ultimate loser.
Don't believe it. Well, just ask Hillary Clinton and Barack Obama.
As the two Democratic presidential challengers escalate their fight for the nomination, many supporters of both tell pollsters that they will vote for Republican John McCain if their favorite winds up losing.
That prospect has Democratic party leaders desperately searching for a way to sooth hard feelings and heal the rupture between the two forces. If the Clinton and Obama camps fail to unite in the fall, the GOP candidate could capture a surprisingly easy victory.
The supporters of the Blu-ray high-def disc format could learn a lesson from the Obama-Clinton race.
From the spring of 2006 to February 2008, Blu-ray and rival HD DVD locked horns in an expensive and often bitter battle to become the leading high-def disc format. Company executives supporting each side frequently traded stinging criticisms that sometimes bordered on the personal.
Blu-ray and HD DVD backers such as Sony, MIcrosoft and Toshiba, invested hundreds of millions in seeing that their format would win. And finally, many company executives put their career tracks on line by aggressively supporting one format over the other.
However, the fight came to an inglorious conclusion in February when Toshiba finally decided to end its financial bloodbath and pull the plug on HD DVD. (Toshiba last week said its profits fell 95 percent due to the failed HD DVD business.)
While Blu-ray is now the clear winner, the victory could be a Pyrrhic one unless it does something to heal the wounds with the HD DVD camp. For instance:
* Toshiba now refuses to manufacture Blu-ray players and even suggests that digital downloads will be the future, not hard disc media.
* Microsoft, while less bitter about the defeat, still hasn't committed to including Blu-ray in its product line, including the XBox 360 video game console.
* HD DVD owners now fill Internet message boards with hateful comments about Blu-ray and the future of high-def discs. (These are HDTV owners who once were solidly behind the concept of the HD disc.)
Blu-ray's victory has left the HD DVD forces feeling bruised and resentful. It's human nature. When you're defeated, you instantly harbor ill feelings about your opponent. Unless...
Unless that opponent immediately takes steps to make you a teammate rather than a combatant. And unless that opponent goes out of its way to be graceful in victory.
I submit that the Blu-ray team has failed on both fronts. Company executives have been a little too busy engaging in victory laps and self congratulatory board meetings.
If the Blu-ray supporters want to win, it needs Toshiba, Microsoft and the hundreds of thousands of HD DVD owners on their side. And today, not tomorrow.
Blu-ray backers, such as Sony, should offer HD DVD owners discounts on Blu-ray products -- and they should offer Toshiba and Microsoft some substantial financial incentives to become Blu-ray companies.
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Verizon's FiOS TV Hits 1.2M Sub Mark
The telco is promising 150 high-def channels this year.
By Swanni
Washington, D.C. (April 29, 2008) -- Verizon said yesterday that it added 263,000 FiOS TV customers in the first quarter, bringing its overall total to 1.2 million.
Fueled by aggressive marketing efforts, Verizon's FiOS has added 850,000 subscribers over the past year. And the telco is now challenging cable operators in several top markets with promises of 150 High-Definition channels by year's end. (Verizon now offers less than 40 HD channels.)
Verizon has also claimed in a TV commercial campaign that its high-def picture is better than cable and satellite, a statement often challenged by its competitors.
However, Verizon FiOS has also suffered from growing pains and has acknowledged difficulties in delivering some promotional items such as free Sharp LCD HDTVs and an inability to meet demand for high-def set-tops.
Company officials yesterday said in an investors call that they have "pretty much caught up" in supplying the HD set-tops to customers who have requested them.
According to the Associated Press, Verizon says the average FiOS customer now spends $129 a month on service. The telco added that it expects to raise some video programming prices later this year when it adds more high-def channels.
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