News & Commentary
TV Stations Ignore Obama, Congress on Digital TV
Roughly 40 percent of local stations will go digital early despite the president's pleas.
By Swanni
Washington, D.C. (February 11, 2009) -- At the urging of President Obama, Congress last week passed legislation to delay next week's scheduled Digital TV transition from Feb. 17 to June 12.
Mr. Obama is expected to sign the bill shortly. But the Associated Press reports that 40 percent of local TV stations will switch to all-digital signals on or before Feb. 17 anyway. This is despite protestations from the Obama administration and lawmakers that the early switch will confuse consumers.
Nielsen estimates that roughly seven million Americans are not ready for the switch, meaning they have not purchased digital converter boxes or Digital TVs or signed up for a pay TV service. If their local stations go digital early, they will lose their TV signals and their screen will go dark.
Congress' decision to pass legislation to delay the transition has generated significant media coverage so it's unlikely that the seven million will take steps to prepare for Digital TV before Feb. 17; the remaining hold-outs now think they have four months to get ready.
As part of a compromise to win Republican support, Senate Democrats included a provision in the delay bill that allows local stations to switch to all-digital signals early if they want. This was done because many local stations expressed concern that they would lose money if they had to broadcast both analog and digital signals beyond February 17.
Commentary:
From the beginning, the government has screwed up the handling of the Digital TV transition and this is just the latest blunder.
By passing the delay legislation, Congress and the president sent a loud message that Americans had four more months to prepare for the switch.
However, allowing local stations to switch early guarantees that millions of people will lose their TV signals next week because they now think they have four months to prepare. When their screens go dark next week, they will panic and start calling everyone from their local congressman to their local station.
Obama and the Congress either should not have passed the delay legislation or they should have passed it without allowing local stations to switch early. By trying to have it both ways, they have only made a bad situation worse.
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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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Netflix: Blu-ray Subs Hit 700,000
The DVD rental service charges a $1 monthly surcharge.
By Swanni
Washington, D.C. (January 29, 2009) -- Netflix said this week that it ended the fourth quarter with 700,000 Blu-ray subscribers, a sharp jump from the previous quarter.
The online DVD rental service said it had roughly 500,000 Blu-ray subscribers at the end of the third quarter. But the company increased that total despite adding a $1 monthly surcharge on Blu-ray customers.
In an investors call, Netflix CEO Reed Hastings said the high-def disc is doing better than expected thanks largely to dropping Blu-ray player prices.
“If Blu-ray player prices continue to fall as expected, driven by next-generation chip designs, then widespread adoption becomes increasingly likely and it extends the life of disc-based viewing," Hastings said.
The company also reported that its fourth-quarter profit soared 45 percent and that it now has more than nine million subscribers overall.
"Our October forecast of slowing growth turned out to be wrong," Netflix CFO Barry McCarthy said during the investors call.
Netflix also said that "millions" of subscribers are using its video streaming service, but the company would not disclose specific numbers. The streaming service, which enables you to download Netflix movies over Internet lines on several devices including Blu-ray players and the XBox 360, is free to subscribers.
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Digital TV Switch: Prisoners Getting New HDTVs
The Massachusetts corrections department says it was preferable to buying cheaper digital converter boxes.
By Swanni
Washington, D.C. (January 28, 2009) -- Can't afford a new High-Definition TV? Well, steal one. If they catch you, you'll still be able to watch it in prison.
At least in Massachusetts, that is.
The Boston Herald reports that the Massachusetts Department of Corrections has purchased 117 new High-Definition TVs for inmates to watch this Sunday's Super Bowl.
The sets, which include 32-inch LG sets and 26-inch Sharp LCDs, cost the state $76,958 at a time when Massachusetts is laying off workers and cutting social programs. The sets are being installed in the common areas of all state DOC prisons this month.
DOC spokeswoman Diane Wiffin defends the purchase by saying the state was forced to upgrade because of the nation's scheduled switch to Digital TV signals next month. The agency formed a committee in 2007 to study the digital transition and decided to purchase the new high-def sets for the common areas rather than buy digital converter boxes, which cost between $40 and $70.
However, the DOC did buy converter boxes for prisoners' in-cell televisions.
Massachusetts is not the only state facing the problem of how to upgrade prisoners' televisions when the digital switch occurs. The Orlando Sentinel reports that Florida is planning to spend $100,000 in tax money to upgrade 1,500 prison televisions so they will operate when the switch happens. And in McLennan County in Texas, the local prison there also bought new TVs to get ready for the transition, reports The Waco Tribune.
But The Boston Herald reports that some law enforcement officials are outraged by the purchase.
“It sends the wrong message when they’re asking sheriff offices throughout the state to cut at least a million out of our budget,” said Worcester County Sheriff Guy Glodis, who says he recently removed TVs from the Worcester County House of Correction. “I would argue there are other things you can spend the money on that are more conducive to rehabilitation.”
But Wiffin told the Herald that the HDTVs were "modest" and were bought from the prisoners' 'canteen funds' rather a direct appropriation from the state. Canteen funds are accumulated by prisoner purchases of items in the prison canteen, such as food and assorted sundries.
It is unclear what happens to canteen money when it's not being used to buy high-def televisions.
“I think you can find a better use for $77,000 than to go out and buy TVs for guys who are used to stealing them," Steve Kenneway, president of the Massachusetts Correction Officers Federal Union, told the Herald.
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U.S. Senate OKs Digital TV Delay
The House is expected to act this week.
By Swanni
Washington, D.C. (January 27, 2009) -- The U.S. Senate last night voted to delay the nation's switch to Digital TV from Feb. 17 to June 12 and the House could do the same as early as today.
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.
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 night on a voice vote, but key senators have said for weeks that the nation is not ready for the transition.
"I firmly believe that our nation is not yet ready to make this transition at this time," said Senate Commerce Committee Chairman John Rockefeller who proposed the delay bill.
To generate Republican support, Rockefeller has promised not to seek more delays past the June 12 deadline. Additionally, local stations are permitted to switch to digital before June if they get approval from the FCC.
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Congress Likely to Approve Digital TV Delay
The bill is expected to be voted on this week.
By Swanni
Washington, D.C. (January 26, 2009) -- Congress appears poised this week to pass legislation that will postpone next month's Digital TV transition to June.
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 critics of the Feb. 12 transition date note that the federal government has run out of funds for the $40 converter box coupons that can be used to purchase the set-tops. They also say that millions of people still seem confused about how to prepare for the transition.
President Obama and most Democratic lawmakers have urged a delay in the transition, but Republicans have balked, saying it would further confuse consumers. But Sen. Jay Rockefeller, chairman of the Democratic-controlled Senate Commerce Committee, late last week reached a compromise with Sen. Kay Bailey Hutchinson, the panel's top ranking Republican, that calls for the transition to take place on June 12.
Hutchinson says she's content that the bill would allow local stations to switch to digital before June 12 if they so desired. Many local stations which have been preparing to make the switch next month have said it will cost them money if they have to wait until June.
“I am pleased that chairman Rockefeller worked with me to address many of the concerns with the early proposals,” Hutchison said, according to Multichannel News. “Significant challenges remain, however, and I will continue working with my colleagues in Congress to ensure a smooth transition to digital television for all Americans.”
While the delay still needs to win approval of the full Senate -- and the House -- the Rockefeller/Hutchinson compromise is seen as a critical step to making that happen. Sen. Rockefeller says the delay legislation is likely to be voted on in the Senate this week.
“Let me be clear. This legislation is not perfect. But it represents a turning point, a start,” he said, according to Multichannel News.
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Is Blu-ray's 'BD Live' Dead?
Executives acknowledge that early Blu-ray interactive features may have been difficult to understand.
By Swanni
Washington, D.C. (January 26, 2009) -- For roughly two years, the Hollywood studios have heavily promoted the interactive features available on Blu-ray high-def discs such as accessing ringtones, games, movie trailers and other content from the Net.
Known as BD Live, the ITV features have been prominently featured in Blu-ray ad campaigns and in-box promotions. However, studio executives are now acknowledging that BD Live, which requires an Internet connection (and some might argue, a tech savvy viewer), may have been too much for consumers to comprehend.
So, the studios are going back to the drawing board with new BD Live features designed to find a larger audience.
“If the initial experience with a feature wasn't immediately intuitive to people, they'd just move on," Miguel Casillas, a Lionsgate senior vice president, tells Video Business. "Users weren't saying they didn't like BD Live, because uber-fans want to get close to the films they love. But it just needs to be easy and fast.”
Video Business reports that BD Live features in 2009 will be "better integrated, easier to use, more plentiful and more glitzy than last year."
By example, Lionsgate plans to launch a BD Live portal, called Lionsgate Live, where viewers will be able to access games, ringtones and chats with the film's director.
Zane Vella, who has worked on BD Live for 20th Century Fox Home Entertainment, tells Video Business that he agrees that the studios may have frighten early BD Live users by requiring them to register before using the features.
“There is going to be more experimentation with what you can do with BD Live before registration,” says Vella. “It will give people more access. Registration can be a hurdle to a seamless consumer experience.”
Sony and Disney also told the publication that they plan to refine the BD Live experience.
Commentary:
Okay, I've been telling these studio idiots for almost two years that consumers couldn't care less about the interactive features on Blu-ray discs. They just want to watch the movie, not sit there downloading ringtones and playing little games with themselves or others.
But the studio executives have been too smart for their own good; they thought -- and they continue to think -- that they can persuade the American public to interact with their televisions.
It ain't going to happen, guys, so give it up.
Concentrate instead on the obvious superior benefits of owning a Blu-ray player -- great picture and great sound. And stop talking about the ITV stuff because all you're doing is confusing a potential customer.
After two years, the studio executives apparently now have enough data to see that BD Live has been a failure. However, instead of accepting the failure and moving on, they now will "refine" the experience.
Well, refine this, fellas: If you keep pushing ITV, you will just alienate and confuse millions of possible buyers.
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Disney to Debut Bolt On Blu-ray
This will be the first time ever Blu-ray gets the edge over DVD.
By Swanni
Washington, D.C. (January 23, 2009) -- Disney has announced that it will release the animated hit Bolt on Blu-ray high-def disc on March 22, two days before its DVD debut on March 24.
Video Business reports that it will be the first time ever that a major video release will debut on Blu-ray before DVD, a sign that the studios are shifting their focus to growing the Blu-ray audience.
The publication adds that retail sources say that Disney hopes the early Blu-ray release for Bolt will generate more interest in the high-def disc.
“This should give some incentive to Blu-ray fans,” one studio source told Video Business.
However, the source added that “this is not a strategy that will happen with every title.”
Until now, new video releases were either released first on DVD or they were released on DVD and Blu-ray on the same day.
Despite Disney's strategy, one retail source tells Video Business that it could back fire, saying that retailers could break the embargo on the Bolt DVD and sell it on the same day as the Blu-ray debut.
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Digital TV: Show Some Leadership!
The transition date should not be moved, says our writer.
By Joseph Whip
Washington, D.C. (January 22, 2009) -- When was it that America became the can't do nation? I pondered this question over and over the past few days while I was in Paris and read the news articles about the impending delay of the digital transition until June 2009. When one visits the beaches in Normandy and walks through the streets of Paris, one can't help but recall the days when America was capable of whatever it put its mind to, from D- Day to the Marshall Plan and the space program.
Let me make this very clear, I am completely against delaying the digital transition any further. The transition has been delayed long enough. It is hard to believe that the first digital broadcasts went live in the top 10 TV markets in November 1998. That is now over ten years of DTV, albeit not across the entire country. The digital transition was initially scheduled for 1996 but was delayed three years until February 2009. It was delayed because the TV stations claimed that they didn't have the money and the public was not ready.
After three years, the stations are now ready but the public isn't?
Come on now. It is now time for the government to lead as it once used to. Keep the transition date as scheduled. It is now up to the people to adapt. If they want their TV, they have very clear choices, get a cable, DBS or telco provider or a converter box.
I can understand that a given consumer may not want to spend for cable but $40 for a converter box? Even if the money for the coupons has run out, why not get one box and wait until the coupons are ready for the other TV's in your home. For those households with available cash, there is no excuse not to get the boxes you need. Allowing a delay due to political pressure for a small percentage of the population will only result in even further delays down the line, as the same concerns that would result in a delay today will still be present in
Three months, 6 months, a year and more. The only way to get the transition over and get everyone on board is to go through with it NOW. There is no time like the present. It seems that all we do collectively as a nation is want to procrastinate.
Rather than bitch and moan and drag our feet, how about adopting a can do attitude and move forward with the digital transition without any further delay. Perhaps we can learn from this experience and use that same can do attitude on much more important issues than TV reception! All it takes is some leadership!
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Nielsen: 6.5M Homes Still Not Ready For Digital TV
The converter funding shortage will likely keep the number high.
By Swanni
Washington, D.C. (January 22, 2009) -- Nielsen said today that 6.5 million U.S. homes are still not prepared for next month's scheduled transition to Digital TV signals.
While this is an improvement of 1.3 million homes from Nielsen's last report in December, it likely won't satisfy critics who say the transition should be delayed. President Obama and numerous congressional lawmakers have called for a delay and both the House and Senate are considering bills to move the transition date.
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. House and Senate lawmakers are considering moving the date to June.
Critics of the Feb. 12 transition date note that the federal government has run out of funds for the $40 converter box coupons that can be used to purchase the set-tops. They also say that millions of people still seem confused about how to prepare for the transition.
In a blog post at Nielsen.com, Susan Whiting, the company's vice chairperson, said that minorities are the least prepared. To wit:
* 9.9 percent of African-American families are unprepared
* 9.7 percent of Hispanic families are unprepared
* 8.8 percent of young families (ages 18-34) are unprepared.
Albuquerque, New Mexico ranks first with with the most unprepared people with 12.24 percent of residents not prepared, according to Nielsen. Dallas/Fort Worth is second with 10.21 percent; Houston is third with 9.95 percent; Tulsa, Oklahoma is fourth with 9.5 percent; while Portland, Oregon is fifth with 9.1 percent.
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