HDTV Owners Seek Out HD Shows
CTAM survey suggests it matters whether a show is in high-def..
By Swanni
Washington, D.C. (June 30, 2008) -- High-Definition TV subscribers are loyal viewers, according to a new survey from CTAM, the cable industry's marketing arm.
In a nationwide poll of 1,200 adults, the group found that 41 percent of high-def owners subscribe to an HDTV programming service while 45 percent said they make a point of watching a high-def program "most of the time" they watch TV.
Additionally, 20 percent of HDTV owners said they make a point of watching a high-def shows "every time" they watch TV.
The results help shed light on what has become a growing debate within the television community: does a program have to be in HD for a high-def owner to watch it?
Some TV executives, such as NBC CEO Jeff Zucker, have speculated that it may not matter if the show is in HD if it's a quality program.
However, HD enthusiasts have long said that high-def owners specifically seek out high-def programs in part to justify their investment.
In other findings, CTAM found that only 14 percent of TV viewers watch TV via desktop computers while nine percent watch on laptops. Only six percent watch TV on mobile phones and just five percent do so on portable video players.
Survey respondents said they preferred shorter content when they do watch TV online. Movie trailers (53 percent) ranked first with user-generated videos (45 percent) second and music videos/news third with 37 percent.
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HDTV Channels In Demand?
Cable and satellite operators looks to build the numbers.
By Swanni
Washington, D.C. (June 30, 2008) -- High-Definition channels may have a greater chance of landing spots in cable and satellite lineups than their SD counterparts.
That's according to an article by TV Week Magazine.
For instance, TV Week notes that Dish Network recently added the obscure World Fishing Network to its high-def lineup. The Toronto-based channel was barely even heard of before the Dish addition, but the satcaster included it in a recent expansion of 22 HD channels.
"Fishing looks spectacular in HD,” WFN President Mark Rubinstein told TV Week.
Perhaps so, but TV providers know that almost anything looks great in high-def. Consequently, they are anxious to expand their HD lineups to satisfy the growing high-def audience.
Eric Sahl, senior vice president of programming for Dish Network, says HD is a way for an independent programmer to stand out.
"We are taking a look at every HD product that’s out there," he said.
Of course, it helps if those independent programmers charge smaller fees to carry their channels. TV providers are constantly involved in battles with programmers who are increasingly demanding more money for the right to carry their channels. Adding an independent high-def channel that requires a smaller fee allows a TV provider to pad its HD numbers.
Sahl, however, said Dish is interested in carrying high-def channels owned by both small and large companies.
"(We're looking) “very closely at new programmers that have HD feeds to try to get our package more robust," he told TV Week.
Henry Scheiff, CEO of Crown Media, which owns the new high-def Hallmark Movie Channel, said an HD channel has become a marketing weapon.
“I think (HD) clearly is replacing all the heat and hoopla around video-on-demand for the last two or three years now,” says Schleiff whose HD channel was recently added by Cox Communications. “This seems to be the marketing weapon.”
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Comcast Goes Digital For HDTV
The cable operator hopes to eliminate analog channels.
By Swanni
Washington, D.C. (June 27, 2008) -- Comcast is expected to order up to six million digital converter boxes this year in an effort to create more space for High-Definition channels.
That's according to an article by Multichannel News.
The publication reports that Comcast will use the digital converter boxes to eliminate the need to transmit analog signals. With the converter boxes, the digital signals, which require less system space, can be displayed on analog sets.
With fewer analog channels, Comcast will have more space for services in greater demand, such as High-Definition TV.
Multichannel News reports that Comcast hopes to switch over 20 percent of its entire subscriber base to all-digital in 2008. Next year, the cable operator will likely order another 12 million converter boxes to further its elimination of analog signals.
Like other cable operators, Comcast is desperately seeking more system space to add more High-Definition channels to keep pace with satcasters DIRECTV and Dish Network. In some Comcast markets, the satcasters offer three times as many national HD channels, putting the cable operator at a major disadvantage.
Multichannel News writes that Comcast analog reclamation project might indicate that it's leaning to using it to create more system space rather than resorting to a new technology called Switched Digital Video.
The publication said Comcast declined to comment for the article.
But Comcast COO Steve Burke said recently that the cable operator wants to eliminate analog channels to “clear more capacity for high-def...Right now even though we say we have 1,000 high-def options on demand, the fact that DIRECTV can say, ‘We have 100 HD channels and no one else does’ -- that’s not a place we want to stay in,” Burke said.
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Dish Network Unveils $59 Digital Converter Box
But the satcaster has yet to launch the much-anticipated cheaper version.
By Swanni
Washington, D.C. (June 26, 2008) -- Dish Network has announced that its new Digital TV converter box, called DTVPal, is now available for purchase for $59.99.
On February 17, 2009, all full-powered local stations must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to watch television.
The converter box will transfer the new digital signals so they can be displayed on the old analog sets.
Dish said that the box can be purchased at its web site, dtvpal.com or by calling 1-888-638-9912.
However, Dish has yet to introduce another digital converter box (the TR-40) that company officials said last January would cost just $39 and would first be available in "limited quantities in March and "unlimited quantities" in June.
The federal government is offering two $40 coupons for consumers to buy the converter boxes, which normally cost around $60. But the $39 Digital TV converter would enable consumers to buy one without having to spend a dime.
The DTVPal would still force consumers to spend $19.99 (after redeeming the $40 coupon) on the box.
But in its press release issued today, Dish Network instead chose to emphasize that the $59.99 was called a "top choice" by CNET.com, the technology web site. The release does not even mention the $39 TR-40 model.
Francie Bauer, a Dish Network spokeswoman, told TVPredictions.com late today that the TR-40 should be available "late this summer."
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Sony to Offer Movie Downloads In 2008
But it's unclear if the service will include high-def.
By Swanni
Washington, D.C. (June 26, 2008) -- Sony said today that it will soon offer movie downloads on Bravia HDTVs and Play Station 3 video game consoles.
That's according to an article by the Associated Press.
Addressing reporters in Tokyo, Sony executives said the company will start delivering blockbuster films and TV shows directly to Net-capable Bravia sets this fall.
The service will start with Hancock, the new Will Smith film that opens in theaters this Friday. Sony said the movie would be offered to Bravia owners before it's released on Blu-ray or DVD -- and before it's available on cable or satellite. The company did not give a specific launch date for the download service.
Sony also did not say if the movies and shows will be available in high-def. However, the company's decision to bypass the traditional first team of distributors -- cable and satellite operators and video rental stores -- is guaranteed to stir controversy.
In addition to the Bravia service, Sony said it will launch a movie download service on the Play Station 3 video console this summer in the U.S. Again, Sony did not say if the PS3 service would include high-def content, but the company suggested that more surprises could be coming to the console.
"Please expect more from our evolving PlayStation business," Sony's video game chief Kazuo Hirai told reporters, according to the AP.
Sony also acknowledged today that it was late to enter the flat-panel TV business, but added that it's overcome that mistake by become the leader in global market share for LCD TVs.
The company also said it plans to increase its investment in developing parts for Blu-ray high-def disc players, a move that could eventually lower player prices.
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Blockbuster: We Need More Blu-ray Discs!
The video rental giant says the high-def disc can boost business.
By Swanni
Washington, D.C. (June 25, 2008) -- Blockbuster CEO Jim Keyes said yesterday that studios must provide more copies of Blu-ray movies to video retailers if they want the high-def disc to succeed.
That's according to an article by Video Business.
Speaking at the Home Media Expo in Las Vegas, Keyes said Blu-ray can prolong the life of the disc rental business by at least 5-10 years.
“Blu-ray Disc represents a classic lifecycle extender,” Keyes said during a panel discussion, according to Video Business. "It represents a good continuation at least for some period of time—five years, 10 years.”
But Keyes lamented that video retailers are having difficulty getting enough copies to place on store shelves to increase consumer interest in the format. Blockbuster is now carrying Blu-ray titles in roughly 5,000 stores.
"We want to put the (Blu-ray) copy right in front of (customers') faces," Keyes said.
The Blockbuster executive added that the relatively high price of Blu-ray sell-through movies (40-50 percent higher than DVDs in some cases) will encourage consumers to rent the discs; but not if the video retailer can't stock enough titles.
“We think the rental model can help Blu-ray,” Keyes said.
Since HD DVD's exit in the high-def format war, many industry officials have complained that the studios are taking too long in releasing a sufficient number of copies of Blu-ray releases. NetFlix, the online film rental service, often lists current Blu-ray releases as unavailable.
Keyes said that if the studios do not improve the rental business for Blu-ray, many consumers may eventually opt to download films over the Net at home.
“If we’re slow in doing this, all it does is stimulate demand for digital,” Keyes said, according to Video Business.
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Digital TV Switch Could Use a Bill Cosby
The transition effort lacks a well-known public spokesman.
By Swanni
Washington, D.C. (June 24, 2008) -- Pop quiz: Who is Meredith Atwell Baker?
a. The grand dame of this Saturday's high society debutante ball?
b. A character played by Margaret Dumont in a Marx Brothers movie?
c. The federal official in charge of the campaign to switch the nation's TV signals from analog to digital?
My guess is that if you posed this question to 1,000 Americans, less than 10 percent would choose the correct answer, which is C.
But Meredith Atwell Baker is the acting head of the National Telecommunications and Information Administration, the U.S. Commerce Department unit responsible for overseeing next year's transition to digital signals.
Ms. Baker is the acting head because the previous official who headed the NTIA, John Kneuer, resigned last year "to pursue new opportunities."
Baker has said she wants to resign, too, but her replacement, Neil Patel, has yet to be confirmed by the Senate. The industry publication Radio Business Report writes that the Senate hasn't even scheduled a hearing yet on Patel's nomination.
So, eight months from the transition date -- February 17, 2009 -- the federal government's effort is being led by an unknown acting agency head who wants to leave her job as soon as possible.
Is there any wonder that many industry analysts believe the Digital TV transition is doomed?
On February 17, 2009, all full-powered local stations must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to watch television.
But surveys indicate that many consumers, particularly minorities and the elderly, are confused over how to prepare for the switch. If they don't act by the transition day, they will lose their TV signals.
Ms. Baker's anonymity -- and apparent reluctance to stay on the job -- is far from the chief reason for the confusion. The industry, from cable operators to local TV stations to CE companies, has done a horrible job of educating consumers. Slickly produced Digital TV public service announcements, which feature flashy graphics over basic information, have only added to the confusion.
But the government's lack of a well-known person to lead the transition effort has been a problem. In past educational campaigns run by the government, high-profile officials such as Dr. C. Everett Koop (health issues) and Tom Ridge (terrorism) have served on point to address the public's concerns. While their effectiveness can be debated, at least you knew who you could turn to.
But I doubt that many Americans are calling Ms. Baker with their questions about digital converter boxes.
The federal government needs a high-profile person to head the educational aspects of this program, someone who can communicate how to prepare for the switch in simple terms. And someone who will instantly command respect from minorities and older residents -- the groups that surveys indicate are most clueless about the switch.
While many people would fit the bill, one name jumps out at me:
Bill Cosby.
The 70-year-old comedian is African-American and, yes, elderly, but he's more than that. Cosby has a gift of explaining things in simple and humorous terms. He would be a hit in federal PSAs, Town Hall meetings and media interviews. Suddenly, millions of Americans who are now tuning out those Digital TV spots would start paying attention.
While it's late in the game, the government needs to do something dramatic to ensure that the transition goes smoothly. Hiring Bill Cosby to head the educational effort would be a good start.
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DIRECTV: We're Not Affected By Recession
The satcaster says HD lineup has kept subscribers coming.
By Swanni
Washington, D.C. (June 23, 2008) -- Paul Guyardo, DIRECTV's chief marketing officer, says the satcaster has not been "dramatically affected" by the U.S. economic slowdown.
In an interview with Advertising Age, Guyardo noted that DIRECTV added 275,000 subscribers in the first quarter, compared to just 35,000 for rival Dish Network. The marketing exec cited three reasons for the subscriber boost:
1. DIRECTV's lineup of High-Definition channels, which now stands at 95, more than any other TV provider.
2. Consumers' decision to spend more money on home entertainment due to high gas prices.
3. DIRECTV's decision to target higher-income subscribers who will have more disposable cash in an economic downturn.
"I don't want to say that we are recession-proof, but I will say that we have not been dramatically affected by the recession," Guyardo told Ad Age. "Right now is a time when people don't necessarily have those discretionary dollars to go out to entertainment outside of the house. And so now more than ever, they're turning to their television as a source of entertainment. And at the end of the day, DIRECTV is an exceptional value."
Guyardo added that DIRECTV launched an aggressive marketing campaign last year to promote its expanded HD lineup -- just when many consumers were starting to feel the economic pinch. The satcaster expanded its high-def channel total from nine to more than 70 last fall.
"All of our awareness studies would suggest that people clearly do understand that DIRECTV is the undisputed leader in HD." he said.
The DIRECTV executive also opined that the growth in high-def set sales may be declining. But he believes that his company is well positioned to attract future HD subscribers.
"People are still investing a ton of money in big, flat-screen TVs, HDTVs. The growth has definitely leveled off, but the growth is still there. And I think they want a quality picture on their 50-inch Plasma," he said.
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MPAA Pushes Early HD VOD Releases
But the plan would prevent recording films on a DVR.
By Swanni
Washington, D.C. (June 20, 2008) -- Hollywood studios this week started campaigning for a plan to air first-run movies on HD VOD shortly after their theatrical release -- and well before their release on DVD and Blu-ray.
The plan, however, calls for a FCC rule change that would permit the studios to block films from being recorded on DVRs. It would also prevent HDTVs with analog outputs from displaying the movies.
The Motion Picture Association of America, the studios' trade group, has filed a petition with the FCC to enact the changes which it says are needed to prevent illegal copying.
Dean C. Garfield, the MPAA's executive vice president, this week highlighted the plan in his keynote speech before the tranFORMATions entertainment conference, according to Home Media Magazine.
Garfield said the studios are anxious to offer home viewers more entertainment options, including the ability to watch a new movie shortly after it plays in the theater. The MPAA executive added that the anti-copying restrictions would not affect the consumer.
“There is no downside for consumers,” Garfield said, according to Home Media. “They will lose nothing they don’t already have.”
However, the Consumer Electronics Assocation, the trade group for electronics companies, opposes the MPAA's plan, saying it gives too much control to the studios.
The National Association of Theater Owners has yet to comment on the plan, but it also could be concerned about losing customers who would wait until a new movie is offered on HD VOD. Likewise, video rental stores could lose business under the plan.
The FCC has begun accepting public comments on the MPAA's rule change request.
If the waiver is granted, the studios say they plan to offer "high-value, High-Definition digital movies to consumers for enjoyment in their homes sometime prior to release on prerecorded media such as DVD."
Cable and satellite operators -- and studio executives -- have openly speculated in recent months about offering some movies on HD VOD in advance of their DVD release, with some officials even saying some films could be offered on the same day as the theatrical release.
Presumably, the early HD VOD release would carry a larger price tag than other VOD films, which usually cost around $3.99.
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DIRECTV: The Clear HD Leader
Cable operators are not even coming close.
By Swanni
Washington, D.C. (June 19, 2008) -- Who's the leading provider of High-Definition TV programming?
That question is being hotly debated in TV commercials and print advertisements with cable, satellite and telco operators all saying they offer the most HD on the market.
However, despite cable's strong protestations, the clear leader as we reach the halfway point of 2008 is satcaster DIRECTV.
In fact, DIRECTV is so far ahead that it can claim the #1 spot even though it's only added a handful of new high-def channels this year. (The satcaster is waiting on a new satellite to expand its HD capacity.) But DIRECTV's 2007 high-def expansion was so dramatic that it's been able to dominate its rivals which haven't even come close to matching the satcaster's HD lineup.
DIRECTV now has 96 national HD channels, compared to roughly 80 for second-place Dish Network. The cable operators badly trail the two with Comcast, Cablevision and Time Warner offering 40-60 high-def channels in some markets.
However, in other markets, the three cable leaders offer fewer than 30 HD channels -- and even less than that in select cities. For instance, the town of Colonial Heights, Virginia is still waiting for its first high-def channel from Comcast.
Verizon has talked a good game this year, promising 150 HD channels by year's end. But the telco still offers less than 40, although it says it will add 25 in the coming weeks.
AT&T's U-Verse TV service is also stuck on the 40 HD channel line, and, unlike Verizon, the company has not made such bold promises about future high-def plans.
Cable TV operators have said -- repeatedly, in fact -- that new technologies and a reduction in analog channels will enable them to match DIRECTV's HD capacity and lineup in 2008.
However, thus far, the talk is just that -- talk.
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Kaleidescape: Our DVD Player Offers Real 1080p HD
But the standard-def player costs nearly $4,300.
By Swanni
Washington, D.C. (June 19, 2008) -- Kaleidescape has introduced an 'upconverting' standard-def DVD player that it claims offers a picture that rivals the Blu-ray high-def disc.
In a press release issued yesterday, Kaleidescape, which specializes in home media servers, says the upconverting SD player retails for around $4,300.
But the company says the unit's upconverting technology will display full 1080p images -- just as good as Blu-ray.
"The 1080p Movie Player upscales ordinary DVD content to beautiful High-Definition video, matching the highest resolution of today's display devices without the added cost and complexity of an external scaler," the press release states. "Crystal clear video and amazingly accurate colors provide a viewing experience rivaling that of Blu-ray."
Manufacturers of upconverting DVD players often compare their picture to high-def, although most industry analysts say the image is only better than regular SD; it's not real HD. But Kaleidescape has taken the high-def comparison to a higher level by saying it's as good as any 1080p Blu-ray player.
"The new Kaleidescape Movie Player produces the best quality video I have ever seen from any source device," David Raife, owner of the Paragon Technology Group, is quoted in the release. "It makes DVDs look absolutely beautiful."
Additionally, the set-top will permit viewers to instantly watch a rental movie or purchased DVD without having to sit through the previews and other pre-movie material.
The player will also permit owners to transfer DVDs to a server that can be connected to the device, a feature that will likely make video rental companies and studios nervous. Kaleidescape users could store DVD rentals and watch them over and over again.
But the company's high-def claims will likely stir the greatest controversy.
“These new players have achieved our goal of producing beautiful High-Definition video from the DVDs that we've all been collecting for years,” Kaleidescape CEO Michael Malcolm said.
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Warner to Release Interactive Blu-ray Movies
But studio says the first titles should come this winter.
By Swanni
Washington, D.C. (June 19, 2008) -- Warner Bros. hopes to release interactive Blu-ray high-def discs by the winter holidays, according to Home Media Magazine.
Disney announced last month that it would include several interactive features in the October Blu-ray release of Sleeping Beauty, including personalized weather and chat.
Darcy Antonellis, president of Warner's technical operations, said yesterday that his studio will offer such ITV features as a search engine, e-mail reminders and ringtones.
The studios will use 'BD Live' to add interactivity to the Blu-ray discs. BD Live is a new technology that enables owners of later model Blu-ray players to download content over the Internet.
Home Media reports that Warner's ITV features will be based in part on the consumer's interests as described in the online registration process.
Antonellis said consumers will embrace BD Live interactivity because of the popularity of interactive video games.
“I think it has the ability to compete (with MySpace and YouTube) for a user’s time because you are taking them online and you’re able to create a community that we have never been able to do before,” she said, according to Home Media Magazine. “That’s huge for us.”
The executive added that Warner would use BD Live to issue alerts about special online events.
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Interactive TV: Blu-ray's Worst Enemy
Efforts by Disney and other studios to add interactivity are only hurting the format's chances of success.
By Swanni
Washington, D.C. (June 18, 2008) -- Blu-ray replication executives yesterday said new BD Live interactive features are making it difficult to make copies of the high-def disc.
Consequently, the executives said, it may be next year before BD Live titles are released in large numbers.
The executives made their remarks at yesterday's Entertainment Supply Chain Academy conference, according to Video Business.
Disney and other studios are planning to add several interactive features to upcoming Blu-ray high-def discs, including chat, ringtones and personalized weather displays. The ITV features can be accessed via Internet connections in the set-tops.
However, the companies charged with making mass copies of the discs said yesterday that the complexity in adding the ITV features via a technology called BD Live is slowing production.
Video Business writes that the executives say they must worry about ensuring the discs are compatible with current players -- and future players that receive firmware updates.
Rolf Hartley, senior vice president of Sonic Solutions, says the obstacles created by BD Live means that some interactive titles may have to wait until 2009.
"The (interactive) players will still be needing firmware upgrades. Implementing BD-Java (the format’s programming language) and BD Live will take regular adjustments. To think that we’ll get it right in the first go-around would be conceited. All of this should shake out in 2009," Hartley told Video Business.
Other replication executives said demand for Blu-ray titles is growing, but the industry is still adjusting to producing the discs en masse.
Commentary:
Here we go again.
While some tech geeks. journalists and industry officials (particularly at Disney) get weak at the knees over these new interactive features, few consumers will actually use them. People want to watch movies, particularly in gorgeous 1080p high-def video.
Downloading a free ring tone or playing a silly game while they watch might make advertisers excited, but it will make movie lovers yawn.
Interactive TV is dead -- despite dozens of attempts to revive it by industry officials clueless about what their consumers really want.
But Blu-ray companies continue to flog this dead horse, slowing consumer acceptance of the Blu-ray high-def disc in the process.
How?
In the spring, CE companies announced that Blu-ray players would have the ITV features, which are unavailable in most current models. Consequently, the companies essentially told consumers that they shouldn't buy current Blu-ray players because they will be obsolete before the year's over.
And they said this about two weeks after Toshiba officially pulled the plug on HD DVD -- the time when consumers might be most interested in buying a Blu-ray player!
"The High-Definition-video war may be over now that Toshiba has conceded defeat for its ailing HD DVD format, but those interested in buying a high-def Blu-ray player still might want to wait for new features coming in the fall," USA Today said in an article on March 19.
And now replication companies are being forced to jump through hoop after hoop to make copies of the discs -- all because of these new interactive features.
For Blu-ray companies to allow this to happen is dumb -- almost as dumb as engaging in a format war.
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Obama Whiffs On Digital TV Switch
The presumptive Democratic presidential nominee apparently has no clue that the transition is in trouble.
By Swanni
Washington, D.C. (June 17, 2008) -- Sen. Barack Obama, the presumptive Democratic presidential nominee, was asked this week by Broadcasting and Cable Magazine for his views on the nation's switch to Digital TV, scheduled on February 17, 2009.
His response: Nothing.
Well, okay, not literally nothing, but it might as well have been.
In an e-mail response to B&C, Obama jotted down the usual spin about the importance of educating consumers -- and ensuring that the neediest people get those $40 federal coupons that can be used to buy digital converter boxes.
(On February 17, 2009, all full-powered local stations must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to continuing watching television.)
"I am committed to working with the Senate and House Commerce Committees and the appropriate agencies to ensure that this transition happens without significant disruption and inconvenience," wrote Obama, or more likely, some Obama staffer.
But in recent weeks, countless studies and numerous witnesses before congressional committees have testified that the transition is on wobbly ground. For instance:
* The government says it may run out money to mail converter box coupons to consumers who want them -- and it says it has no plans to request more money for that effort;
* Hundreds of thousands of converter coupons are scheduled to expire soon -- and the government currently has no plan to allow consumers to reapply for them;
* Consumers are having trouble finding the converters in stores with retailers adding that they have no idea when more converters will be available;
* Millions of consumers say they have no plans to prepare for the switch;
* Millions more who don't need to do anything for the switch are planning to get converter boxes anyway, leaving fewer available for those who do need them;
* Million of homes may lose some local stations even if they get converter boxes, which will likely cause widespread anger and confusion.
And so on...and so on...
But in Obama's comments, the senator offers no indication that the Digital TV switch could become the technological equivalent of Katrina -- with millions of people losing their TV signals overnight. He also expresses no indication that the transition is even in trouble, despite the piling evidence.
The transition is now just seven months away, but the Illinois senator seems like he isn't even paying attention.
"The transition will continue to require public-private cooperation and targeted outreach to seniors and lower-income communities. We have made coupons available for converter boxes, and we need to ensure that the neediest individuals are receiving them," Obama stated.
Blah, blah, blah.
Before you accuse me of political bias, let me say that Sen. John McCain, the presumptive GOP nominee, is no better. The Arizona senator has issued the same robotic responses to questions about the transition, suggesting that consumer education is needed and the government must work with the private sector.
But everyone knows that. What we don't know is what our so-called leaders are going to do about ensuring that this sinking ship is righted before it's too late. The transition is scheduled for February 17, 2009 -- less than one month after the next president takes office.
Whoever that might be, he better wake up and start paying attention to what could be the first major disaster in his administration.
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Studio Execs: Blu-ray Sales to Hit $1 Billion
The number could double next year.
By Swanni
Washington, D.C. (June 17, 2008) -- Blu-ray high-def disc sales could hit the $1 billion mark this year -- and jump to $2.5 billion next year, according to several Hollywood studio presidents.
That's the conclusion of an article published today by Home Media Magazine.
The studio executives made the comments as yesterday's Home Entertainment Summit in Los Angeles. Despite some forecasts saying that Blu-ray sales may not take off for a few years, the movie chiefs say consumer acceptance is imminent.
Steve Beeks, president of Lionsgate, noted that a recent study found that nearly three million standalone Blu-ray players will be in homes by year's end -- and millions more will own Sony's Play Station 3, which also has a Blu-ray player inside.
“It shows consumers are really embracing the format,” Beeks said, according to Home Media, adding that 7-10 percent of weekly Blu-ray sales have come from the standard-def DVD.
Mike Dunn, president of the Fox studio, said consumer acceptance of Blu-ray will be faster than the standard-def DVD because more people are now familiar with digital discs.
Kelley Avery, president of Paramount, said she would be content if Blu-ray sales hit $750 million this year. But she said the $1 billion forecast is not impossible.
“When you look at the first half of the year, the business is slightly down,” Avery said, according to Home Media. “When we look at the summer slate of films across all the studios, you see that they can be a great bridge to introducing people to Blu-ray in the fourth quarter.
However, the executives also opined that Blu-ray player prices need to fall to get consumers to buy in. Avery expressed hope that a Blu-ray player will retail for under $200 in the fourth quarter.
The execs also noted that many consumers are content to watch standard-def DVD players, or upconverting DVD players that enhance the SD image.
“Upconverters, we think, are a huge problem,” said Warner Home Video President Ron Sanders. “Those houses (that buy an upconverter) are out of the market for several years.”
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Comcast, Big Ten Network Close to Deal?
Chicago Tribune reports the two sides are ready to end impasse.
By Swanni
Washington, D.C. (June 16, 2008) -- Comcast and the Big Ten Network are close to signing a deal that would enable the cable operator to carry the network's SD and HD channels.
That's according to an article by The Chicago Tribune.
Comcast, the nation's largest cable operator, has been reluctant to add the channel, saying the Big Ten Network was demanding that it be offered in a basic programming tier. The cable operator wanted to include it in a sports tier, which would require an extra fee.
But The Tribune reports that the deal is likely to be announced this week. The Big Ten Network airs live college basketball and football games as well as other college sports.
"For all intents and purposes, it's done," The Tribune quotes one source as saying.
The newspaper writes that the Comcast deal would nearly double the number of homes that can watch the Big Ten Network from 30 million to 55 million.
However, Time Warner, Mediacom and Charter, which has several million subscribers in strong Big Ten markets such as Michigan and Ohio, have still refused to add the channel.
The Tribune reports that the Big Ten will be carried on an expanded digital programming tier rather than in an exclusive sports package. However, Comcast will have the option to move the channel to a different package in the future.
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Will High-Def Mean Low Sports Attendance?
Minnesota Vikings executive says it's getting tougher to draw fans.
By Swanni
Washington, D.C. (June 15, 2008) -- A top Minnesota Vikings marketing executive says High-Definition TV is making his job more difficult.
The Vikings recently announced that its 2008 season ticket base will be 55,000. Although that's the same as last year, it's 6,000 less than a few years ago when the team featured All-Star wide receiver Randy Moss.
"(But) I don't think the renewal percentage is a factor of a fan-base erosion or anything; it's just a matter of the challenge of the Metrodome and people leaving their High-Definition televisions at home to come sit in the Metrodome in some of the upper sections," Steve LaCroix, the Vikings' vice president of sales and marketing, told the St. Paul Pioneer Press.
La Croix speculates that many fans believe they will get a better view of the game at home in front of their high-def sets. The Vikings, whose regular season games are broadcast by Fox, usually can be seen each week in HD.
The executive's comments could suggest that sports teams will have a greater challenge in the years ahead as networks and regional sports channels expand their HD lineups. With ticket prices rising, more fans may be content to watch the games at home, particularly since they have already invested heavily in those sets.
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Cox to Add 5 HD Channels In New England
The additions are scheduled for Wednesday.
By Swanni
Washington, D.C. (June 15, 2008) -- Cox this Wednesday will add five new High-Definition channels in New England markets, including the Providence, Rhode Island area.
The cable operator notified subscribers of the additions last week in an e-mail in which it also announced six new non-HD channels.
The new high-def channels will be: Bravo HD, USA Network HD, Lifetime HD, Sci-Channel HD and CNBC HD.
The cable operator has already those channels in select markets across the country.
Cox's New England markets include Connecticut, Massachusetts and Rhode Island. The cable operator now carries about 30 HD channels in those areas.
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Dish Network Adds Tribune HD Stations
The satcaster also adds WGN America HD.
By Swanni
Washington, D.C. (June 13, 2008) -- Dish Network this week is adding High-Definition signals for Tribune-owned local stations in four markets.
The stations are: KCPQ (Fox station in Seattle); WPIX (CW station in New York); WGN-TV (CW station in Chicago); and KTXL (Fox station in Sacramento, California.)
The satcaster has also added WGN America HD, as reported here earlier this week. The high-def channel carries HD broadcasts of the Chicago Cubs and Chicago White Sox.
The channel additions are part of a larger carriage agreement between Dish Network and Tribune, which also includes local HD signals for 23 Tribune stations in 19 markets.
"With the Cubs and White Sox leading their divisions in the Major Leagues, we are excited to reach this agreement with Tribune to launch WGN America in HD,” said Eric Sahl, senior vice president of programming for Dish Network.
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Time Warner: We Have 63 HD Channels
The cable operator adds more high-def channels in San Antonio.
By Swanni
Washington, D.C. (June 13, 2008) -- Time Warner Cable says it now offers 63 High-Definition channels in the San Antonio, Texas market.
That's according to an article by BizJournals.com.
The cable operator yesterday added Disney Channel HD and ABC Family HD to its San Antonio high-def lineup. The additions brought TW's overall HD channel total to 63, which would place it number three behind DIRECTV (95) and Dish Network (81) among all TV providers.
However, Time Warner's high-def lineup varies by market with some local systems such as Los Angeles getting fewer than 30 HD channels. The cable operator says it's upgrading each local system as rapidly as possible to enable more high-def services.
But the gap between one market and another illustrates the difficulty that cable operators have in competing for the growing high-def audience.
Because they are national, satellite TV services offer the same number of national HD channels in each city, which allows it to run national advertising campaigns promoting its high-def channel count.
But a cable operator such as Time Warner has to be careful about saying how many HD channels it offers because it could be seen as deceptive advertising in a market that gets fewer high-def networks.
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PS3 Outsells XBox Again; Blu-ray Cited
The Sony console finishes in second place behind Wii.
By Swanni
Washington, D.C. (June 12, 2008) -- Sony's Play Station 3 out sold Microsoft's XBox 360 in May and the PS3's Blu-ray player appears to be a chief reason.
That's according to an article by Variety Magazine.
The publication reports that the NPD Group has found that PS3 sold 209,000 units in May compared to 187,000 for the XBox 360. Both consoles trailed Nintendo's WII, which sold 675,000 units.
However, PS3's second place finish surprised industry observers. The console outsold the XBox earlier in the year but Microsoft then blamed supply problems. Variety reports that there were no supply concerns in May.
The PS3, which has a Blu-ray player inside, appears to be benefiting from Blu-ray's victory over HD DVD in the high-def disc format war. Toshiba pulled the plug on HD DVD at the end of March; the XBox offered an HD DVD adapter, but has not yet offered a Blu-ray feature.
Variety said PS3's growing library of games and price cuts in 2007 are also giving the Sony console a major boost.
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MOJO: Go For the Dough
The high-def channel launches series to promote advertiser.
By Swanni
Washington, D.C. (June 11, 2008) -- MOJO HD will soon launch a reality show that's produced and created specifically to promote an advertising sponsor.
That's according to an article by The New York Times.
The five-episode series, which is expected to air in late August or early September, will be designed to promote Dos Equis beer, the newspaper said.
Hosted by Shanon Cook, the show will focus on finding an assistant to a fictional spokesperson for the beer.
Since the early days of TVs, advertisers have purchased the right to include its product in program names, such as The Colgate Comedy Hour, a 1950s variety show sometimes hosted by Dean Martin and Jerry Lewis. Additionally, show producers in the last few years have increased their use of product placement -- exhibiting an advertiser's product prominently in a scene.
However, the MOJO partnership with Dos Equis takes the concept to a new level by creating a show whose sole purpose is to promote the beer.
"The series will bring to life the character and core attributes of the Dos Equis MIM campaign, so our consumers will have the opportunity to engage with the brand in a new way," a Dos Equis spokesman said.
MOJO HD, formerly known as INHD, is available on most cable systems.
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DIRECTV Offers Free Preview Of 65 HD Channels
The preview will be available this weekend.
By Swanni
Washington, D.C. (June 11, 2008) -- DIRECTV is holding a free preview of 265 channels this weekend, including 65 High-Definition channels.
The free preview, which will run from June 13-15, will include 66 premium movie and sports networks, including HD versions of HBO, Showtime, Starz, Cinemax and the regional sports networks.
The 265 channels are part of DIRECTV's 'Premier Package,' which normally costs $81.99 a month for the first 12 months.
High-def channels that will also be available in this week's preview include NBA TV, Versus, HDNet and The Tennis Channel.
The free preview will not include channels in DIRECTV's 'HD Extra Pack' package, such as HDNet Movies and Universal HD.
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Feds: We Need More Stamps For Digital TV
The 2009 switchover hits another bump in the road.
By Swanni
Washington, D.C. (June 11, 2008) -- Federal officials testified yesterday that they need more money to buy stamps to mail out coupons for Digital TV converter boxes.
That's according to an article by Reuters.
On February 17, 2009, all full-powered local stations must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to watch television.
The feds are offering two $40 coupons for consumers to buy the converter boxes, which cost around $60. The boxes will enable an analog TV to display the new digital signals. Consumers must use the coupons within 90 days after receiving them.
But Bernadette McGuire-Rivera, associate director of the U.S. National Telecommunications and Information Administration, which is overseeing the digital transition, told a congressional committee yesterday that the coupon program has hit a snag.
"(We) would have to get more money, basically to buy more stamps to send out coupons," she told the House Subcommittee on Telecommunications and the Internet.
However, Reuters reports that the NTIA issued a statement after the hearing saying it "has no plans to ask Congress for any additional funds."
While the NTIA's stamps shortage may seem troubling, the issue is just the latest bump in the road for next year's scheduled transition to digital signals.
McGuire-Rivera told the subcommittee that only 42 percent of the converter coupons are being redeemed by consumers before they expire; each coupon has a 90-day expiration and consumers now can not apply for a new one if the first one expires.
Some lawmakers have urged the NTIA to waive the 90-day requirement, which was imposed to prevent fraud. But McGuire-Rivera said the agency likely lacks the funds to issue new coupons if it decided to allow consumers to reapply.
"The program currently has limited administrative funds to distribute additional numbers of coupons that might be issued from the returned (coupons)," she said, according to Reuters.
The NTIA began mailing coupons on February 21 and it has received requests for more than 16 million.
"This sounds like it could be a big problem here," Rep. Edward Markey, chairman of the House Subcommittee on Telecommunications and the Internet, said at the hearing, Reuters reports.
Other committee members complained that their local CE stores are out of converter boxes, which makes it diffic
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DIRECTV's Cancellation Fees Draw Media Fire
The satcaster says the charges are valid.
By Swanni
Washington, D.C. (June 11, 2008) -- Several TV stations and local newspapers are urging caution about signing up with DIRECTV because of the satcaster's controversial early cancellation fees.
The FCC has scheduled a hearing tomorrow on early termination fees imposed by cell phone companies. However, consumer advocates are pushing the agency to investigate other companies, including TV providers. The recent media glare on DIRECTV's cancellation policy could force the FCC to comply with those requests.
DIRECTV requires you to extend your service agreement for two years when it sends you a replacement receiver, including an HD DVR. However, the agreement's fine print states that if you cancel your subscription before the two years are over, DIRECTV will charge you with an early termination fee.
The fee sometimes runs more than $300.
For years, DIRECTV customers have complained at Internet message boards that the fee is unfair because the new receiver is often a replacement for a set-top that no longer works.
The satcaster, however, has maintained that the cancellation fee allows it to issue a replacement at no additional up-front cost.
But in the last few weeks, local TV stations and newspapers in Phoenix, Sacramento, Raleigh, North Carolina, Naperville, Illinois and Seattle have reported that their residents are hopping mad over the cancellation fee.
For instance, KTVK-TV in Phoenix reported this week that one local resident was charged $313 after she tried to cancel her subscription.
"All I did was order a new part to receive their product," the resident told the station.
A Raleigh, North Carolina resident told station WTVD-TV that DIRECTV charged her $160 as an early cancellation fee -- and another $200 when the satcaster said it didn't get the DVR she had mailed back a few months earlier.
"A DVR she returned and had the FedEx receipts to prove it. She called DIRECTV and wrote a letter disputing the charges, but the charges continued to add up and she got turned into collections. That's when Marianne e-mailed (WTVD)," the station wrote at its web site.
In the Raleigh case -- and several others -- DIRECTV has told the media outlets that the fees are valid. However, the satcaster adds that it will credit their accounts, something it's not known for beyond the media spotlight.
"Carolyn (the upset customer) has been with us a long time and we hope to have her back at some point in the future, so we have credited the early cancellation fee," DIRECTV said in an e-mail to KTVK in Phoenix.
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