Vudu to Sell Permanent HD Downloads
The price will range from $14 to $24.
By Swanni
Washington, D.C. (February 24, 2009) -- Vudu, the Video on Demand set-top service, says it will begin selling permanent High-Definition movie downloads for purchase over the Net.
That's according to an article by Video Business.
The $149 Vudu set-top enables users to download movies over a high-speed Internet connection. The box, which can also store movies, offers more than 13,000 movies and shows, including more than 1,000 HDTV selections.
Until now, however, Vudu only permitted owners to permanently download movies in standard-def and keep them on their set-tops. The service offered high-def rentals, but they would be deleted from the set-top after viewing.
Starting with today's offering of the Oscar-winning documentary, Man on Wire, Vudu will permit users to keep high-def films on the set-top. Additionally, a Vudu owner will be able to delete the movie but retrieve it again from Vudu's server for free at a later time.
Video Business reports that Vudu has signed deals with Magnolia Pictures, First Look studios, Kino and other independent studios to offer their films as permanent downloads.
The publication adds that the HD downloads will be available in 1080p video the same day they debut on DVD and Blu-ray. The permanent HD downloads will cost between $13.99 and $23.99, the company said.
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Study: 100M Blu-ray Discs Sold In 2009
Futuresource says dropping player prices will drive greater interest.
By Swanni
Washington, D.C. (February 23, 2009) -- More than 100 million Blu-ray discs will be sold worldwide in 2009, with 80 million sold in the United States, according to a new study from Futuresource Consulting.
The research group, which is based in the United Kingdom, said lower Blu-ray player prices and continued strong sales of high-def capable TVs will drive the increased sales of Blu-ray discs.
"In the USA, BD has moved from early adopter phase through to early majority, with the format gaining real traction in the marketplace,” says Mai Hoang, Senior Market Analyst at Futuresource Consulting. “Last year in the US alone, BD video retail sales increased by a whopping 320% to 24 million units; and we’re going to see momentum continuing in 2009, with over 80 million disc sales forecast.”
Futuresource said Blu-ray penetration in Western Europe is still at the 'early adopter' stage, but it's gathering momentum.
“The UK is the largest market for BD in Western Europe,” says Hoang. “With sales of more than 3.5 million units in 2008, it represented over 40 percent of the West European total. BD also benefited from a number of UK television campaigns during the critical fourth quarter of 2008, considerably raising consumer awareness. Factor in Sky’s high profile approach to marketing its HD service, and to a lesser extent the BBC/ITV joint venture, Freesat, and the cumulative effect has made a substantial impact upon the marketplace.”
The research group said that action/adventure discs continue to dominate the Blu-ray category, in part due to the high number of PlayStation 3 owners. (PS3 has a Blu-ray player inside.
"For some high profile (action/adventure) titles, close to 25 percent of all disc sales have been on BD, while other action adventure titles consistently see BD accounting for over 15% of total sales," Futuresource stated.
The group also predicted that 50 percent of U.S. video disc sales will be Blu-ray in the United States by 2012.
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Studios Putting Blu-ray, DVD In Same Box
Hollywood looks to keep both audiences happy.
By Swanni
Washington, D.C. (February 23, 2009) -- Several studios are planning to issue new video releases with both the film's Blu-ray and standard-def DVD discs inside.
That's according to an article by Video Business.
The publication reports that 20th Century Fox will soon release a Blu-ray/DVD package for Marley & Me (March 31) while MGM will issue one for The Princess Bride (March 17). Lionsgate's upcoming Terminator 2 set (May 19) will include a Blu-ray version and two standard-def editions.
The studios hope that the inclusion of the Blu-ray disc along with the DVD edition will encourage more consumers to embrace the high-def disc format.
Disney introduced the practice last fall when it said it would release seven Blu-ray/DVD combo packs in 2009, including Pinocchio in March and Snow White and the Seven Dwarfs in October.
“Standard DVD or Blu-ray represents amazing value and amazing quality, but how do we make it more flexible to adapt to the changing lifestyle?” a Fox executive told Video Business. “We’re constantly looking at consumers’ habits.”
The executive suggested that Fox will offer similar combo packs for other movies.
"I will say strategically this is going to be our direction for certain movies," she said.
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Commentary
Why Is the Media Lying About Digital TV?
The nation's leading publications are unwilling to challenge local broadcasters and other industry heavyweights.
By Swanni
Washington, D.C. (February 22, 2009) -- After roughly 36 percent of local TV stations switched early to all-Digital TV signals last week, the FCC received more than 70,000 complaints in the first two days.
70,000 complaints in just two days.
An Oklahoma City station said it received more than 900 calls from complaining viewers in the first two days. The Providence Journal reports that the Rhode Island Broadcasters Association was swamped with so many complaints that reporters were unable to get through for more than 10 minutes at a time.
Other local stations from WSTR in Cincinnati to several stations in Nebraska have reported an overwhelming number of angry callers. And a 70-year-old man in Missouri actually shot his TV because he couldn't figure out how to use his digital converter box.
Based on these developments, you would think that the early DTV switch was a major disaster. Despite local stations' insistence on switching early to save money (the official transition date is now June 12), it would appear that their viewers were not ready, as many people warned. (The stations would save money by switching early because they would no longer have to transmit both analog and digital signals.)
Some journalists don't always report what they see.
But good luck in finding that story in many of your nation's top trade and consumer publications, particularly if they are owned by companies that also own local TV stations which desperately want the switch to occur now.
For instance, The Los Angeles Times, which is owned by The Tribune Company, which also owns roughly 20 local TV stations, ran a headline last week that said: "Digital TV Switch Goes Smoothly in San Diego."
"Fears of blank TV screens and pixelated shows largely failed to materialize in San Diego on Wednesday as months of public outreach left the vast majority of viewers capable of receiving pictures via the new all-digital broadcasts," the Times wrote in a boosterish article.
The Columbus Dispatch, whose ownership also owns a local TV station in Columbus, ran a headline that said: "Switch to Digital TV Met With Little Fanfare." The Tampa Tribune, owned by Media General, which owns TV stations in 18 markets, published a headline stating, "Digital TV Switch Doesn't Faze Viewers."
And there were several other examples of newspapers owned by companies that own local TV stations printing Digital TV stories that seemed more appropriate for a collection of short fantasies.
But it wasn't just the consumer press that seemed to go into the tank on this story. If you read the nation's leading TV trade publications, you would think the early switch went as smooth as silk.
For instance, Multichannel News ran a headline saying, "Early DTV Switch: Hardly a Hitch." The story actually included the following sentence: "There appeared to be no major fallout from the discontinuation of analog by about one-quarter of the stations on the original transition hard date."
Broadcasting & Cable published a headline that said: "FCC Says It Is Handling DTV Calls So Far." The publication also ran a story featuring a FCC commissioner praising local stations for their cooperation with the switch. And yet another B&C article was published under the headline, "NAB (National Association of Broadcasters) Says DTV Calls Aren't Flooding Switchboards."
TV Week's headline published the day after the switch read: "DTV Switch Encouraging..." The story's lead sentence read: "Initial reports from some of the 421 stations that yesterday switched to digital TV signals suggest the most dire predictions about the transition may have been overblown." (To TV Week's credit, the publication has balanced that view in recent days with additional articles.).
So, what's happening here? Why are so many publications seemingly so eager to portray the early Digital TV switch as a huge success?
It's quite simple. In the case of newspapers with ownership connections to local TV stations, they are following orders. Their corporate parents have a vested interest in creating the perception that the switch is a success, so by God, their newspapers will toe the line or else.
Don't kid yourselves, folks. Newsrooms do not make decisions based solely on journalistic reasons.
And in the case of the trade publications, they have an historic closeness to the National Association of Broadcasters and other industry heavyweights who want the DTV switch to be portrayed as a success. In fact, their readership is largely made up of industry officials, not average consumers who are still struggling to figure out the complexities of the DTV switch. Consequently, their stories have been largely pro-Digital TV.
In my view, the reality is that the early Digital TV switch was a mixed bag. In some cities, viewers handled it well, but in others, it's a mess and continues to be. And when all local TV stations switch on June 12, it will likely be a similar scenario. In cities where an overwhelming majority of viewers have prepared for the switch, it will go, yes, without a hitch. But in many markets, the switch will leave thousands without any TV signals and thousands more with spotty reception.
But depending upon which publication you read, you may not get that story.
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Comcast's HD Not In Demand
The cable operator reports huge sub losses -- and there's a good reason.
By Swanni
Washington, D.C. (February 19, 2009) -- Guess which TV provider offers more High-Definition channels.
a. DIRECTV, which added 301,000 net new subscribers in last year's fourth quarter -- and increased its total subscriber count by 800,000 for the year.
b. Comcast, which reported yesterday that it lost 500,000 subscribers in 2008, almost half in the fourth quarter.
No, it's not a trick question. The answer is DIRECTV, which offers more than 100 HD channels in every market while Comcast averages around 40 HD channels per market.
Now you can offer a number of reasons why DIRECTV had a better year than Comcast. But the satcaster's decision to heavily invest in new satellites so it could expand its high-def offering has clearly paid off. Consumers looking for a diverse and comprehensive HD lineup are coming to DIRECTV.
In contrast, Comcast's decision to focus on non-HD features, such as voice and high-speed Internet access, may have helped it compete with new telco services such as Verizon's FiOS and AT&T's u-Verse. But the cable operator has alienated its core audience -- TV viewers, particularly the high-def audience which craves more HD channels and will accept nothing less.
Comcast has tried to paper over its 'HD gap' by promoting its HD On Demand service, which offers PPV movies and repeats of TV programs in high-def, many of them free. The company has even bragged in TV commercials that it has more 'HD choices' than any other TV provider.
But the numbers don't lie. Consumers are obviously not buying Comcast's propaganda. They want more channels, not more choices, and they are going to services such as DIRECTV and Verizon which offer them. (Verizon now offers more than 100 high-def channels in the 16 markets it serves.)
Comcast says it's now taking steps to expand its high-def lineup, such as shifting analog channels to digital which creates more bandwidth for HD.
But if the company wants to avoid another year like 2008, it better move fast
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Star Trek Finally Lands On Blu-ray
The TV series will be released this spring.
By Swanni
Washington, D.C. (February 18, 2009) -- The only TV season of the sci-fi cult series Star Trek will be released for the first time on Blu-ray high-def disc on April 28, according to Reuters.
The release from Paramount Studios is designed to coincide with the theatrical premiere of the new Star Trek movie on May 8.
Four days after the new movie opens, Paramount will also release two Blu-ray boxed sets of films based on the Star Trek series -- the Star Trek Original Motion Picture Collection and the Star Trek Motion Picture Trilogy.
The Blu-ray edition of the Star Trek series, which will be remastered for high-def video and sound, could help trigger sales of Blu-ray players and discs, particularly among young sci-fi enthusiasts who own PlayStation 3 video game consoles.
Reuters reports that the disc will include all 29 episodes from the 1966-1967 season and it will permit viewers to toggle between the original broadcast version and the enhanced Blu-ray edition which will include enhanced visual effects.
The wire service also writes that the Blu-ray disc will include several extras including the original previews for each episode.
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421 TV Stations Switch to Digital Today
The stations are switching prior to the mandatory date.
By Swanni
Washington, D.C. (February 17, 2009) -- The FCC said yesterday that 421 local TV stations today will switch to all-digital signals although the federal government has postponed the mandatory transition date to June 12.
That's according to an article by Broadcasting & Cable Magazine.
President Obama last week signed into law a bill that moves the mandatory Digital TV switch date from today to June 12. But the FCC permitted some local TV stations to switch early.
B&C reports that roughly 36 percent of local stations will have gone all-digital today; approximately 220 stations had already made the switch to digital signals.
Some analysts have opined that the early switch will confuse consumers who were just told that the transition date had been moved to June. Nielsen estimates that approximately 6-7 million homes have not prepared for the transition by purchasing a digital converter box, a Digital TV or signing up for a pay TV service.
Responding to a possible fallout from the early switch to digital, the FCC has expanded its 'DTV Help Line' call center and it has sent staffers to 72 markets where local stations are switching early.
"This is not just about whether people can watch their favorite reality show," said acting FCC Chairman Michael Copps, according to B&C. "It's about whether consumers have access to vital emergency alerts, weather, news and public affairs."
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What's Wrong With HDTV?
The high-def set is still not a household staple in the United States. How come?
By Swanni
Washington, D.C. (February 16, 2009) -- High-Definition TV is an unqualified success with a majority of U.S. homes tuning in a high-def program every night.
Right?
Wrong.
More than a decade after its launch, HDTV has yet to become a household staple in the U.S., on par with such products as the microwave, cordless phone, mobile phone or even the DVD player. Estimates vary, but most studies show that the HDTV is in only about a third of U.S. homes.
Even worse, Nielsen reported last December that only 23.2 percent of U.S. households have the high-def tuners that are necessary to watch high-def programming. Although that number has climbed from roughly 13 percent from a year ago, it's remarkable that so relatively few Americans are watching High-Definition programming. If you listened to industry and cultural analysts, you would think that HDTV was everywhere.
Not everyone is watching HDTV.
But with the deepening global recession, it's possible that HDTV will not reach a majority of U.S. households in the next 5-10 years, or maybe ever.
So, what's wrong with HDTV?
1. Still Too Costly
Despite dropping prices, most high-def sets are still cost prohibitive for most Americans. While you can buy a small-screen HDTV now for under $500, the sets that make people drool -- that make them run to the store -- are still close to $1,000 or more. Even before the recession, that was too much for budget-conscious Americans. During the recession, it's an unthinkable luxury.
2. Old TVs Prevail
Despite the upcoming Digital TV transition (assuming it is upcoming), millions of Americans still own older, non-HD analog sets. They spent good money for them and they still work -- so why update them? Or, at least, that's the view of the analog TV owner. It's a lot cheaper to get a $50 digital converter box (which allows digital signals to display on the analog set) than it is to buy a high-def set. And it's also cheaper to buy a non-HD Digital TV set for $200-300 than it is to throw down the mortgage money on a high-def one.
3. Poor Education
Cable and satellite providers (and the telcos) still surprisingly do little to educate consumers that if they have a high-def set, they need a high-def tuner to watch HD programming. (Roughly one-third of HDTV owners fall in this category.) They seem to think that high-def owners have figured it out.
And TV manufacturers and CE retailers do next to nothing to help out. Their view: They've sold the set so why spend their time and money ensuring that people use it to its fullest?
However, that's a myopic view. If more people had high-def tuners, that would be more people out there in the marketplace spreading the word about HD's wonderful picture and sound. And that would lead to more people buying high-def sets.
4. Not Enough HD Programming
Not enough high-def programming, you ask? How can that be? Aren't there dozens of HD channels?
Well, yes, that's true. But the four major broadcast networks, which still dominate primetime ratings, still produce far too many shows in standard-def. For instance, on CBS, The CBS Morning Show, The Amazing Race, 48 Hours and several other shows are still not in high-def. And on NBC, under spendthrift CEO Jeff Zucker, sometimes the entire primetime lineup is not in HD. For instance, unscripted shows such as Deal or No Deal and The Biggest Loser are delivered in deadly dull SD.
The result is that the average viewer is not as excited about high-def as he could be.
5. The Blu-ray/HD DVD Debacle
The industry's food fight over which high-def disc format would prevail unquestionably hurt the HDTV industry. The high-def disc, which offers a picture superior to anything on cable, satellite or a telco service, is a great showcase for the technology. However, the format war slowed consumer interest in high-def discs -- and now that Blu-ray has prevailed, the studios' stubborn insistence to price Blu-ray movies at $5-10 more than their standard-def editions continues to delay consumer acceptance.
Blu-ray should be a catalyst for selling more high-def sets, but it's often just a reminder of how costly high-def can be.
Conclusion
High-Definition TV has come a long way in the last 10 years. But the high-def industry -- from retailers to TV makers to TV providers to the Hollywood studios -- need to congratulate each other less and start selling more. They need to stop saying that high-def is a success and start admitting that more needs to be done. If they don't, with the current economic conditions, HDTV may have hit a wall.
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Vizio to Stop Producing Plasma HDTVs
The discount TV maker will focus exclusively on LCD.
By Swanni
Washington, D.C. (February 11, 2009) -- Vizio says it has stopped producing Plasma High-Definition sets and will now concentrate entirely on its LCD series, according to the New York Times.
In an article published today, Vizio's co-founder, Laynie Newsome, told the newspaper that the company is nearly out of existing Plasma inventory, although it's still selling Plasma sets at its web site. And the low-cost TV maker has no plans to resume Plasma production.
Newsome explained the company's decision by saying that Plasma does not sell as well as LCD in part because its picture does not look as good in retail showrooms. Generally, Plasma sets look better in dark rooms while LCD sets fare better in well-lit rooms, such as electronics stores.
Vizio's decision is another blow to the Plasma HDTV which has lagged behind the LCD in sales over the past two years for a variety of reasons. Vizio has become a top seller of new TVs because of its lower prices and consumer-friendly promotions.
The Times notes that Vizio's departure leaves just three large-volume Plasma makers in the United States: market leader Panasonic, Samsung and LG Electronics.
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DIRECTV: 50 Percent of Subs Get HD, DVR
The satcaster added 301,000 net subs in the fourth quarter.
By Swanni
Washington, D.C. (February 11, 2009) -- DIRECTV said yesterday that roughly 50 percent of its subscribers now subscribe to High-Definition and/or DVR packages.
Additionally, company executives said that 55 to 60 percent of new subscribers are signing up for high-def and/or DVR services. (DIRECTV does not break down how many subscribers have High-Definition TV and how many have Digital Video Recorders. They include both in the same category.)
The satcaster revealed the numbers yesterday in an investors call following the release of its fourth quarter report.
DIRECTV said that it added 301,000 net new subscribers (SD and HD) in the fourth quarter, an increase from the 275,000 generated during the 2007 fourth quarter. The satcaster said the increase was its largest quarterly sub increase in three years. The company now has 17.6 million total subscribers.
DIRECTV CEO Chase Carey said his company has been "immune' to the economic recession which has hurt other TV providers. Wall Street analysts yesterday suggested that DIRECTV is taking new customers from their cable and satellite rivals.
But Carey added: "I expect the economy to put pressure on us."
DIRECTV has seen its subscriber totals rise steadily since it began expanding its high-def lineup in the fall of 2007. The satcaster now claims more than 130 HD channels, although a Pike & Fischer study yesterday said the number is actually 104. (DIRECTV includes Pay Per View channels in the total.)
The company has been slower to add HD channels in the last several months due to capacity issues and programming costs. But CEO Carey yesterday reminded analysts in the investors call that his company will launch a new satellite this year that will offer more capacity.
"We’ll launch a satellite latter this year that will enable us to continue to add to our HD experience or continuing to build on our leadership in sports and add to the richness of our content with events like Friday Night Lights. Our VOD offering will improve in both richness to the offering and functionality in terms of things like faster access and a more integrated experience," Carey said.
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Who's the Real HDTV Leader?
A new study says DIRECTV's top ranking is under challenge.
By Swanni
Washington, D.C. (February 10, 2009) -- Verizon's FiOS TV service is challenging DIRECTV's position as the TV provider with the most High-Definition channels, according to a new study from market research firm Pike & Fischer.
The study says that, as of January 2009, DIRECTV offered 104 high-def channels. (The satcaster claims to offer more than 130 HD channels, but its total includes a number of Pay Per View channels and distant network signals that few count as real channels.)
But Verizon had 103 HD channels in January 2009, just one less than DIRECTV, the company said.
DIRECTV has established itself as the leading provider of High-Definition channels for the past year after it dramatically expanded its high-def lineup in the Fall of 2007. But Verizon last year boosted its HD lineup in several cities and now offers more than 100 HD channels in every market it serves.
The Pike & Fischer study says Comcast, the nation's largest cable operator, has "one of the smallest selections of HD channels," offering fewer than 40 HD channels in some markets. (Comcast has recently ncreased that number in several markets.)
"Cable networks do not have the same capacity as Verizon's all-fiber infrastructure and DIRECTV's satellite coverage, and thus face more constraints on bandwidth for HD channels," the company says in a press release.
Although Verizon and DIRECTV may offer more high-def channels than their cable counterparts, P&F notes that Cablevision and Time Warner are among a group of cable ops that offer "a substantial number of HD channels for free...Some providers have clearly assembled both the physical plant and the contracts with content owners to provide more HD content than their competitors. But it is important to look at what content is actually being offered, and at what price."
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Commentary
Digital TV: What Is Obama Waiting For?
The president needs to sign the delay bill -- now.
By Swanni
Washington, D.C. (February 10, 2009) -- Congress last Wednesday approved legislation that would delay the Digital TV transition from Feb. 17 to June 12.
President Obama, who requested the delay, has promised to sign that bill. However, as of this writing, the president has yet to approve it and the transition is still scheduled to take place next week, leaving a whole lot of people confused.
For instance, Multichannel News reports that the National Telecommunications & Information Administration, which runs the government's DTV converter box program, is saying at its web site that the transition will take place on both days.
The FCC says at its web site that "some" local TV stations may switch to digital on Feb. 17 while others may switch "sometime" before June 12. Dozens of newspapers are still reporting that the transition will occur on Feb. 17 while dozens more are saying it will be June 12.
The mixed messages are just making it more difficult for the roughly seven million people who haven't prepared for the switch to start taking action. With the government -- and perhaps their local newspaper and other media -- saying confusing and conflicting things, they will likely start tuning out anything related to Digital TV. And if that occurs, good luck in getting them to buy converter boxes or Digital TVs before June 12.
I realize that the president is busy these days, but he needs to sign the legislation immediately. And he needs to step forward with a concrete and clear plan on how the nation will switch to digital without leaving millions of people without TV signals.
Hey, Mr. President, you asked for the delay. So sign it already!
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Vudu Drops Set-Top Price to $149
The VOD service offers more than 1,000 high-def films.
By Swanni
Washington, D.C. (February 10, 2009) -- Vudu, the VOD set-top service, has dropped the price of its entry-level set-top (BX100) from $295 to $149, according to CNET.com.
The Vudu set-top enables users to download movies over a high-speed Internet connection. The box, which can also store movies, offers more than 13,000 movies and shows, including more than 1,000 HDTV selections.
However, Vudu has struggled to generate interest due to competition from traditional TV services such as cable and satellite and a general 'set-top' fatigue among Americans. To build interest, the company cut the price of its entry-level box from $399 to $295 last year.
The new price reduction could be seen as an effort to keep pace with other Net-enabled set-top services, such as Apple TV, Netflix (available on the XBox 360 and other devices) and Blockbuster, which recently launched the MediaPoint VOD player, made by Broadband device manufacturer 2Wire.
But it also could be a last ditch effort to survive amid increasing competition in a tough economy.
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DIRECTV to Increase HD & SD Bills
The satcaster says the average increase will be four percent a month.
By Swanni
Washington, D.C. (February 9, 2009) -- DIRECTV has announced that it will raise monthly programming rates on March 4, including High-Definition packages.
That's according to an article by Multichannel News.
The satcaster said monthly programming package will rise an average of four percent. For instance, DIRECTV's Plus HD DVR package will jump 4.8 percent from $72.99 to $75.99.
DIRECTV's 'Select' package will rise 6.5 percent, from $45.99 to $48.99.
DIRECTV spokesman Robert Mercer told Multichannel News that the new prices reflect the "significant investments we've made to enhance our customers' viewing experience."
Craig Moffett, a Wall Street analyst, noted today in a research note that other TV providers are also raising rates. But the Sanford Bernstein analyst suggested that DIRECTV may be taking a bigger risk by raising prices now because consumers may opt to eliminate premium channels from their lineups. The satcaster is more dependent on premium channel revenue than its cable counterparts.
"Weighing on the pay TV stocks has been a generalized fear that investors will downgrade their service packages," he said. "On this score, DIRECTV may, over the long run, be more vulnerable to recession-related service downgrades than its competitors given DIRECTV's more significant reliance on 'discretionary' services.'"
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Apple to Enter the TV Business?
Wall Street analyst says the company will include iTunes in the set.
By Swanni
Washington, D.C. (February 9, 2009) -- Pioneer may be ready to exit the TV business, but one Wall Street analyst says Apple could be preparing to storm in the front door.
Gene Munster, the managing director and senior research analyst at Piper Jaffray, predicts that Apple will launch its own branded TV set in the next two years. The set, the analyst says, will likely include DVR features and built-in components for Apple TV and iTunes.
In March 2007, Apple launched the Apple TV device which allows viewers to send videos and music from the company's iTunes store to a widescreen TV.
But the Net TV product has been a disappointment although it has been heavily promoted by some tech journalists and Wall Street analysts. Two years after launch, Apple has yet to release sales figures for Apple TV and company executives have dubbed it a "hobby."
If Munster is correct, Apple could be looking for a way to eliminate the middleman by including iTunes videos and music directly in the television.
Apple would not be the first computer maker to enter the TV business. Dell and Gateway became TV manufacturers a few years ago, but both dropped out due to poor sales and other problems.
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News & Commentary
Why Pioneer May Exit the TV Business
The company's strategy of selling high-end HDTVs meets the global recession.
By Swanni
Washington, D.C. (February 8, 2009) -- Pioneer, the maker of high-end Plasma High-Definition TVs, told Reuters last week that it's considering leaving the TV business entirely.
The company is projecting a loss of $848 million for the year ending March 31, which would be its fifth consecutive annual loss
"There is a whole spectrum of possibilities with withdrawal on one end, in-house development and production on the other and sales of procured TVs somewhere in the middle," a Pioneer spokesman told the news service.
Several other news reports, however, say Pioneer has decided to exit the TV business and bundle its DVD/Blu-ray business into a join venture with Sharp.
Pioneer has carefully crafted a reputation in North America for selling expensive, but exquisitely made Plasma HDTVs. Some high-def enthusiasts swear by them, saying they offer the best picture on the market. (Pioneer only makes LCD sets for the European market.) However, the sets are often hundreds of dollars more than comparably-sized models from rival companies.
Reuters notes that Pioneer captured just 5.9 percent of the Plasma TV market share in the first three quarters of 2008, badly trailing LG, which had 15.5 percent, Samsung, which had 22.8 percent and top-ranked Panasonic with 37.2 percent.
Commentary:
Pioneer is a victim of the deepening global recession -- and its own market strategy.
The electronics company has learned the hard way that today's anxiety-ridden consumer is rejecting anything that's perceived as a luxury item. And with Pioneer pricing its sets far above the norm, the average person sees Pioneer as pricey.
Instead, average folks are deciding that buying a cheaper Plasma set from well-known brand names such as Samsung and Panasonic makes more sense.
However, even if times were good, Pioneer's sales would continue to disappoint.
The company has failed to create a strong enough perception in the marketplace that its sets are something special, worth the extra coin. The tech intelligentisia -- led by tech journalists -- may sing Pioneer's praises, but the average consumer just thinks the sets are overpriced.
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Study: Blu-ray to Get 60 Percent Market Share In 2014
The Kagan study says player sales will reach $1.3 billion by 2010.
By Swanni
Washington, D.C. (February 5, 2009) -- Research firm SNL Kagan said yesterday that the Blu-ray high-def disc will capture a 60 percent market share of home video sales by 2014.
The company added that the high-def format will take a whopping 74 percent market share by 2017.
Despite some analysts predicting that digital downloads will soon dominate the home video scene, Kagan's study is decidedly bullish on physical media, particularly Blu-ray. At least for the next decade, that is.
“Blu-ray will be the driving force behind the video retail market throughout the next decade,” said Wade Holden, an analyst at SNL Kagan, according to Home Media Magazine.
Holden acknowledges, however, that the current economic recession will slow Blu-ray's growth.
“The current economic climate, however, will slow the growth of this new format and likely keep it from reaching the heights that it may have (reached) in better times," he said.
Still, Kagan estimates that Blu-ray disc sales will reach $13.1 billion in revenue by 2014 and $15.6 billion by 2017. Additionally, Blu-ray player sales will jump from $255.4 million in 2008 to $1.3 billion in 2010 and $6.9 billion by 2013.
After 2017, Kagan says Video on Demand services, including digital downloads over the Net, will begin to take over the home video industry.
“VOD services will continue to improve in both technology and content over the next decade and begin to draw consumers away from Blu-ray and DVD by 2017,” Holden said, according to Home Media Magazine.
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Congress Approves Digital TV Delay
The bill now goes to President Obama for his expected signature.
By Swanni
Washington, D.C. (February 4, 2009) -- The U.S. House today approved a Senate bill that delays the nation's switch to Digital TV from Feb. 17 to June 12.
The bill, which was approved by a vote of 264 to 158, now goes to President Obama for his expected signature.
The Obama administration had urged Congress to delay the transition from analog to digital, saying that millions of people are not ready for the switch and therefore could lose their TV signals.
Until today's vote, all full-powered local stations were scheduled to switch their analog signals to digital on February 17, meaning viewers would need a Digital TV, a digital converter box or a pay TV subscription to continuing watching television.
But the president and others have noted that the federal government has run out of funds for $40 coupons that consumers can use to defray the cost of the converters. Obama's proposed economic stimulus legislation includes $650 million to refund the converter coupon program.
The Senate passed the delay bill last week on a voice vote. To generate support for the delay, the bill allows local stations to switch to digital before June if they get approval from the FCC.
Nielsen has estimated that as many as seven million people are not ready for the transition at this point.
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News & Commentary
Disney May Raise Blu-ray Prices
The company examines ways to cut losses.
By Swanni
Washington, D.C. (February 4, 2009) -- The Walt Disney studio yesterday said it's considering raising the price on Blu-ray titles although surveys show that most consumers believe that high-def discs are already too expensive.
In a conference call with Wall Street analysts, the studio discussed various ways how it would rebound from a 64 percent first quarter earnings decline. Disney CEO Robert Iger said that the company would continue to try to convince consumers that its products have value that goes beyond price.
For instance, he said, Blu-ray discs that offer interactive features and a digital download file that enables playback on computers could be a candidate for a price hike.
"For instance, we are finding that when we sell a Blu-ray DVD with a standard DEP file and also a downloadable file, we can actually offer a price to the consumer that is viewed by the consumer as delivering greater value, which is enabling us to drive revenue at a level that is slightly better than we might have if we had not added those basically valuable extras to the DVD," Iger said.
Most Blu-ray high-def titles are priced between $5-10 more than their standard-def DVD companions and analysts have blamed this in part for disappointing disc sales. Some studios have experimented with lower prices, but Disney appears poised to raise prices.
"Today our focus is only intensifying as we address the changes affecting the DVD market. To that end we plan to reduce production, marketing, and distribution expenses at our home video business and to implement strategies that enhance the price-to-value relationship of our products. We believe the unique nature of our brand and the quality of our movies helps us to stand out in this environment but we must also innovate in order to generate attractive returns," Iger said.
Disney has recently released such popular Blu-ray titles as Sleeping Beauty, WALL-E and the Pirates of the Caribbean trilogy.
Commentary
Yes, times are tough and companies have to reassess how they do business. But if Disney raises Blu-ray disc prices, times will get a lot tougher for its home video business. Bad idea, Bob Iger.
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Dish Network Adds Fox News HD
This is the second HD addition during the week.
By Swanni
Washington, D.C. (February 3, 2009) -- Dish Network today added the Fox News HD Channel to its lineup of high-def channels.
The channel, a simulcast of the news network's standard-def channel, includes such programs as Fox & Friends, Hannity, The O'Reilly Factor, the Fox Report With Shepard Smith and Glenn Beck.
Dish Network also this week added the Crime and Investigation HD channel. However, at the same time, it removed the Smithsonian Channel HD channel without explanation.
Dish officials have hinted that they will add several more HD channels this year, but they have not said anything about dropping channels to make room.
Crime & Investigation HD offers a diverse mix of crime-related documentaries and fiction shows such as 24, Crossing Jordan and Twin Peaks.
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Report: Blu-ray Players to Hit $150 In 2009
The price could be lower in discount stores.
By Swanni
Washington, D.C. (February 3, 2009) -- Blu-ray player prices will fall to $150 suggested retail by the 2009 holiday season, according to an article in today's Economic Daily News.
The Chinese-language newspaper reports that "white box vendors," the industry term for no-name or little-known brands, will offer the $150 Blu-ray players.
Additionally, Lite-On IT, a Taiwan-based maker of optical disc drives, will sell Blu-ray players at that price, the article said. (The Economic Daily News article was reported today by DigiTimes.com). The newspaper said the low-priced Blu-ray players would be available internationally and in the United States.
If the report is true, it would likely mean that Blu-ray players would be available this holiday season for under $100. Discount stores often slash a product's suggested retail price, particularly during the holidays.
Most entry-level Blu-ray players now carry a suggested retail of $299, although stores and web sites offer some players for less than $200. Industry analysts have said that Blu-ray player prices need to fall before the high-def disc industry can reach a wider audience.
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Survey: Netflix Top Choice Of DVD Renters
But Consumer Reports notes the company charges extra for Blu-ray rentals
By Swanni
Washington, D.C. (February 3, 2009) -- Netflix has scored the highest overall customer satisfaction marks in a Consumer Reports survey of its online subscribers, the publication announced.
Consumer Reports said Netflix received high marks for price, selection and service, but the publication added that survey respondents expressed satisfaction with all of the rated providers, which included subscription services, in-store kiosks, walk-in stores and chains.
The magazine also noted that Netflix charges an extra $1 monthly fee for Blu-ray rentals and that Blockbuster and Netflix offer the same number of Blu-ray titles (roughly 1,000.). Blockbuster's online service does not charge extra for Blu-ray rentals.
Blockbuster, which finished second in the survey, also allows subscribers to exchange online rentals at its retail stores.
Consumer Reports said price was the biggest factor in overall customer satisfaction, followed by convenience, variety, and flexibility. The publication said Netflix was top rated for selection and service.
"With monthly payment plans starting at $5, Netflix was among the standouts for price; it was top-rated for selection and service. Readers reported that orders were filled promptly and with very few errors," Consumer Reports said in a statement released yesterday.
Among in-store kiosks, Redbox received top marks for price and convenience, Consumer Reports said.
The full results of the Consumer Reports survey can be found in the March issue of the publication.
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Commentary
Hey, I Don't Want the DTV Switch Delayed!
But the feds better push it back unless they want chaos on their hands.
By Swanni
Washington, D.C. (February 2, 2009) -- The U.S. House this week is expected to vote on a Senate bill that would delay the Digital TV transition from February 17 to June 12. By most accounts, the legislation will pass and will soon be signed into law by President Obama who supports a delay.
And that's a damn good thing.
I predicted more than a year ago that the federal government would delay the nation's switch from analog to digital signals. As a longtime observer of the federal government (including 10 years as a congressional reporter), I have come to the conclusion that our nation's leaders are incapable of doing anything right until the problem blows up in their faces.
Why?
Politicians only care about covering their fat political asses, getting re-elected and blaming others for their mistakes. They couldn't care less about their constituents, the concept of public service or just simply doing a good job. (Trust me, I've seen these animals up close; they are even worse than you think.)
Joe Six Pack: What's a converter box?
So forecasting that the digital transition would be delayed was one of my easiest predictions. I knew that the feds would screw it up -- and they certainly have. Seriously, here we are roughly two weeks away from the transition and:
1. The Converter Waiting List Is Growing and Growing...
Millions of people are now on a federal waiting list for $40 digital converter coupons because the feds ran out of money to issue them. (The coupons can be used to buy converters that can enable old analog TVs to keep working when the signals are switched to digital.)
Why did they run out of money?
At the start, the feds decided to make everyone eligible for the coupons, regardless of their income level. Yes, that's right. Bill Gates is eligible for a $40 coupon. Warren Buffet is eligible. Donald Trump is eligible. Everybody is eligible! No wonder they ran out of money!
The feds should have made the coupons available only to the people who needed them the most -- low income folks who can't afford to plunk down $60 or $70 for a converter box, not to mention buy a new Digital TV.
Plus, the feds should have done a better job of alerting cable and satellite subscribers that they didn't need converter boxes so they wouldn't apply for them. (Cable and satellite providers provide digital boxes as part of their service.) That would have left more coupons available for those who did need them.
2. Millions of People Are Still Baffled
Approximately seven million people say they are not ready for the switch and polls show that the chief reason is that they are confused. They still don't have a clue whether to get a converter box, a new TV or stand on their heads and hope for the best.
And there's no wonder. The government and the CE industry did a horrible job of educating consumers on how to prepare for the switch. Horrible! The slick PR commercials (by cable, local stations, the feds, etc.) looked like they were designed by Silicon Valley tech freaks for Silicon Valley tech freaks.
How was Grandma Moses or Joe Six Pack going to understand what was going on with all those flashy graphics and fast cuts on their screen? Give me a break.
3. The Feds Are Continuing to Confuse People
Okay, it's February 2 and the federal government still hasn't decided on the transition date! You don't think that's not confusing people?
Dear God, what if Congress this week decides not to postpone the transition -- after the president and congressional leaders said they likely would postpone it.
Well, there's little chance that those seven million people will run out and get converter boxes in the next two weeks; based on what they've been hearing, those seven million people probably have already decided that the transition will be delayed.
So, Congress better delay this thing or it will be an even bigger mess than it would have been before they started talking about a delay a few weeks ago.
Now that I've gotten that off my chest, let me get to the real point of this commentary.
Yes, I predicted the transition would be delayed. I have also pointed out (repeatedly) over the last year how the feds were exhibiting gross incompetence in managing the transition.
Because of those two things, some readers have posted comments in our message board saying that I have always wanted the transition to be delayed. By pointing out the transition's flaws, some people assume that I am against it.
Well, that's nonsense. Like it or not, I realize the Digital TV transition is inevitable. But I don't want to see millions of people suddenly lose their TV signals because of government incompetence. I don't want to see millions of people flooding government offices and local stations with phone calls. And I don't want to see local TV stations suddenly have a dramatic drop-off in ratings.
The Digital TV transition must happen -- but it must be done right. So, yes, approve the damn delay.
But as I say that, I have to ask a final question:
Will our politicians put aside their petty ways and do it right the second time around?
I wish I could say I can predict that one..
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Dish Network Adds HD Channel; Drops Another
This satcaster does not offer an explanation.
By Swanni
Washington, D.C. (February 1, 2009) -- Dish Network today added the Crime & Investigation high-def channel, but apparently made room in its lineup by dropping the Smithsonian Channel HD.
That's according to an article by Multichannel News.
Dish subscribers who tune to Smithsonian Channel HD are greeted with an on-screen message saying the satcaster "regrets that we no longer offer this channel." Viewers are advised to consult Dish's web site for more information.
The web site, however, only shows that the Smithsonian Channel has been replaced by the Crime and Investigation HD channel in the satcaster's 'PlatinumHD' programming package.
Dish officials have hinted that they will add several more HD channels this year, but they have not said anything about dropping channels to make room.
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House Rejects DTV Delay -- For Now
But House leaders plan another vote next week.
By Swanni
Washington, D.C. (January 29, 2009) -- The House of Representatives yesterday rejected a measure that would have pushed the Digital TV deadline from Feb. 17 to June 12.
The House voted 258-168 in favor of the delay, but the bill needed a two-third majority to pass under rules approved for its consideration; the legislation fell 26 votes short of the two-thirds majority.
The defeat surprised many industry observers who thought the delay was assured when the Senate earlier in the week approved it by a voice vote. However, House Republicans opposed the delay, saying it would further confuse consumers.
Despite yesterday's defeat, House Democratic leaders remained hopeful that the delay bill would pass next week when it would not require a two-thirds vote.
"The likelihood is we'll come back next week" and pass the bill, said Rep. Rick Boucher, chairman of the House telecommunications subcommittee, according to the Los Angeles Times.
A spokesperson for House Speaker Nancy Pelosi told The Times that the speaker was looking for a way to hold another vote.
On February 17, 2009, all full-powered local stations are scheduled to switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to continuing watching television.
But the Obama administration has urged Congress to delay the transition from analog to digital, saying that millions of people are not ready for the switch and therefore could lose their TV signals.
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