Dish Network: 150 HD Channels In 2008
The satcaster also says it will broadcast in 1080p.;
By Swanni

Washington, D.C. (July 31, 2008) -- Dish Network says it will have 150 High-Definition channels by year's end, according to an article by Reuters.

The satcaster now has offers more 80 national HD channels, but it expected to add 17 high-def channels tomorrow, bringing its total to 100.

But to keep pace with DIRECTV, which says it will offer 150 HD channels by year's end, Dish says it will expand the lineup to 150 by the end of the year.

The satcaster also said it will be the first TV provider to offer high-def movies in 1080p resolution, the same resolution offered on Blu-ray high-def discs.

DIRECTV earlier this week said it would air some movies in 1080p, but did not give a launch date other than to say "later this year."

Dish said its 1080p resolution will be offered when it unveils a new subscription package next month.

DISH Chief Marketing Officer Jessica Insalaco told Reuters that the satcaster plans to start promoting more of its high-end products, such as high-def , even with the economy sagging.

"Television is still a huge part of people's lives, and with rising gas prices the whole home video experience is more important than ever," she told the wire service.

A recent study found that DIRECTV and Comcast customers spend more money per month on their TV service than Dish customers.


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LG to Unveil Blu-ray Player With Netflix
The NetFlix films will be standard-def only.
By Swanni

Washington, D.C. (July 31, 2008) -- LG Electronics is expected to announce today that it will start selling a Blu-ray player this fall that can also stream Netflix videos.

That's according to an article by Reuters.

The LG/NetFlix partnership was revealed by the companies months ago, but this is the first time details are being released about its features.

A LG spokesman says the Blu-ray player will be priced "well under $500...and will be competitively priced with the other new Blu-ray players coming to market."

While the player will display Blu-ray high-def discs, the NetFlix streaming videos are expected to be available in standard-def only at launch.

The player is expected to be able to choose from more than 12,000 NetFlix SD movies and TV shows, which will be available for instant viewing. Users will be need a NetFlix subscription, however.

The LG player will include BD Live and Bonus View features, meaning it can retrieve online content and interactive features.

To access the NetFlix films, the player will need to be connected to a Broadband service.


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Verizon Accuses Cablevision of Withholding MSG HD
The telco has filed a complaint with the Federal Communications Commission.
By Swanni

Washington, D.C. (July 29, 2008) -- Verizon's FiOS TV service yesterday unveiled a new lineup in New York that consisted of 100 high-def channels. However, conspicuously absent from the list is the high-def edition of the Madison Square Garden sports network.

And there's a good reason, charges Verizon. Cablevision, which owns MSG, is purposely preventing the telco from carrying the channel because the two companies are competing for the same New York subscribers.

But Eric Rabe, vice president of media relations for Verizon, writes in his blog at the company's web site that Cablevision is required under the Cable Act to make the channel available. He says Verizon has filed a complaint with the Federal Communications Commission.

Cablevision won't deny that it's withholding MSG HD. In a response to TVPredictions.com, company spokesperson Kim Kerns would only say the following:

"MSG complies fully with federal guidelines and does not put a lot of credence in self-serving comments that appear on Verizon's own blog."

Asked if that was a denial, Kerns said the company had no other comment.

But Rabe had more comments in his blog.

"And as if Cablevision’s motives in evading the program access were not clear enough, after denying us the HD MSG programming, Cablevision advertises that it is the only carrier to provide it in HD," Rabe writes.


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DIRECTV to Add 30 HD Channels In August
The satcaster says the majority of new channels will be regional sports networks.
By Swanni

Washington, D.C. (July 28, 2008) -- DIRECTV said today that it will launch 30 more High-Definition channels, beginning August 14, bringing its overall total to 130.

However, 23 of the 30 channels will be regional sports networks.

The satcaster also revealed that it will begin offering movies in 1080p high-def video, the highest resolution format available, and the same resolution available on the Blu-ray high-def disc. DIRECTV did not offer a launch date for 1080p movies, other than to say "later this year."

DIRECTV said the new HD channels that will launch next month are:
Showtime Extreme HD, Showtime Showcase HD, Planet Green HD, ABC Family HD, additional DIRECTV HD PPV channels and an additional 23 Regional Sports Networks (RSNs) in HD 24 hours a day.

The satcaster said it will also transmit all of its HD programming in the MPEG-4 Advanced Video Coding standard by the end of this month, saying it's the first to do so in the industry.

“Despite all the sound and fury of confusing HD claims from our competitors, our customers understand that DIRECTV is the destination for the most compelling and complete lineup of HD content,” said Derek Chang, DIRECTV's executive vice president.

DIRECTV launched a new satellite in March (DIRECTV 11) that will enable next month's high-def expansion. The satcaster says the new satellite -- and an additional one that will be la


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Verizon FiOS: 100 HD Channels In NY
The company competes directly against Time Warner and Cablevision.
By Swanni

Washington, D.C. (July 28, 2008) -- Verizon says it's now offering 100 High-Definition channels in the New York area.

The telco launched TV service in New York City today, competing directly with cable operators Cablevision and Time Warner.

In a press release issued today, Verizon said the new 100 HD channel lineup will be offered to customers in New York City and existing FiOS TV markets in the New York area, including parts of Long Island, the suburbs north of the city and northern New Jersey.

However, Verizon did not release a list of the 100 high-def channels that it says will be available in New York.

"America's biggest city now has the biggest High-Definition (HD) TV lineup as Verizon today begins selling FiOS TV service to customers in New York City," the release stated. "As FiOS TV is launched here, the service will offer 100 HD channels, giving customers more HD than Time Warner or Cablevision."

Cablevision this week is expected to add around 15 high-def channels, giving it a total of 60. Time Warner has said it will offer 100 high-def channels in New York by year's end.

Verizon said last year that it would provide up to 150 high-def channels by the end of 2008, but recently seemed to back away from that commitment.

In the press release, Verizon said the 100 HD channel lineup will include Animal Planet, TLC, FX, USA, Bravo, TBS, The History Channel, The Weather Channel, The Science Channel, Sci-Fi Channel, CNN, CNBC, Fox Business Network, Fox News Channel, QVC, the Travel Channel, Planet Green, Disney Channel and Toon Disney.

In addition, 13 HBO channels and 11 new Cinemax channels will be in high-def, the company said.


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NetFlix: Blu-ray Sub Prices to Rise 'Shortly'
The company says it will first test an increase in Blu-ray rental fees.
By Swanni

Washington, D.C. (July 25, 2008) -- NetFlix CEO Reed Hastings said today that his company will test higher rental fees for Blu-ray high-def discs "very shortly."

Hastings made the disclosure in an analyst call after the release of the company's second quarter report. The executive did not reveal how any details about the pricing increase.

"We’ll be commencing the testing of Blu-Ray price increases very shortly, depending on the test results of those, then we’ll move forward with implementing," Hastings said.

Hastings said in the company's 1Q analyst call that the increase could be defined as a "modest premium." But he did not elaborate at that time, either.

He defended the increase by noting that Blu-ray discs cost more at retail -- and he opined that high-def owners are used to "paying more."

In related issues, Hastings said Blu-ray usage among NetFlix subscribers has "continued to be very low, low-single-digits." But he said the company remains hopeful that the high-def disc will help boost DVD rentals.

"It’s something that has promise over the next couple of years, particularly through this Christmas season and beyond, if player prices fall significantly. This will be the first Christmas coming up where there’s dedicated players that are at more aggressive prices," Hastings said.



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Could DIRECTV & Dish Network Merge?
The XM-Sirius deal could set the stage.
By Swanni

Washington, D.C. (July 25, 2008) -- The satellite radio merger between XM and Sirius appears ready for FCC approval this morning and some analysts are wondering if it will trigger a similar deal with DIRECTV and Dish Network.

The satellite TV services have tried to merge before, but the FCC rejected the deal in 2002 on grounds that it would be anti-competitive.

However, since then, there has been an explosion of new video services from telcos Verizon and AT&T to VOD-based set-tops from Amazon, TiVo, Apple and Microsoft, among others. DIRECTV and Dish Network have more far more competition now than ever before.

Additionally, critics of the XM-Sirius deal made a similar argument that it would hurt consumers and be anti-competitive. However, reports today say that the FCC will soon approve it after the companies agree to several concessions such as price limits.

"It's a logical segue," Jimmy Schaeffler, chairman of the Carmel Group, and a longtime satellite industry watcher, told The Hollywood Reporter yesterday when asked if DIRECTV and Dish Network will now merge. "They will clearly have a better chance."

The Hollywood Reporter says the two companies are not commenting, but another analyst says the merger would still face major regulatory obstacles.

"I wouldn't be surprised to see speculation about a Dish-DIRECTV merger based on the satellite radio approval, but the fundamental legal argument in both mergers are quite different," Sanford C. Bernstein analyst Craig Moffett told the publication.

Moffett said the FCC's decision in 2002 said a satellite TV merger would create a monopoly in rural America.

"Since then, the telcos have deployed a significant amount of fiber and begun deploying video networks, but none of that activity has been in rural America," Moffett said. "So, the legal test in rural America hasn't changed one iota. I don't think a merger of that kind is likely."


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Could HDTV Backfire On DIRECTV?
One Wall Street analyst says customers may seek cheaper services in a rough economy.
By Swanni

Washington, D.C. (July 24, 2008) -- DIRECTV has spent a fortune on developing high-end services such as an expanded High-Definition lineup and the NFL Sunday Ticket package.

The goal: Create a premium brand that customers will be willing to pay more for each month.

However, one Wall Street analyst says that the strategy could backfire if the nation's economy continues to falter. Consumers may seek out TV providers that offer fewer services at smaller prices.

"There is the possibility that being a premium brand at the high end of the pay-TV market may end up being negative for DIRECTV," said Kaufman Bros analyst Todd Mitchell, according to Reuters.

Thus far, DIRECTV's strategy has paid off with the satcaster leading the industry with the highest revenue per subscriber ($80 a month). Comcast is second with $76 a month, according to Reuters. (Dish Network averages $68 a month.)

In addition, the satcaster added 275,000 net subscribers in the first quarter.

But analysts say they expect the second quarter net sub totals to fall significantly, perhaps as low as 100,000. If those reports are true, DIRECTV's huge investment in satellites and infrastructure that enables it to offer more high-def programming could be questioned.

The company's investment would also be in jeopardy if economy-minded consumers started to cut back on their monthly subscriptions, perhaps eliminating a few premium services.

Reuters notes that the company's decision to develop a 'premium brand' originated a few years ago when top executives decided to raise the credit requirements for signing up. Soon thereafter, DIRECTV's average monthly subscriber bill started to rise.

The company then began investing in satellites that would enable it to offer more high-def channels. Most analysts agree that the move has paid off thus far.
"DIRECTV has done a pretty good job in the HD propaganda war, convincing people that they have 100 channels and that's far superior," Tuna Amobi, an analyst at Standard & Poor's, told Reuters. "It's all about perception."


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Will DIRECTV Add HD Channels Early?
The company's new satellite is expected to become operational in September.
By Swanni

Washington, D.C. (July 23, 2008) -- DIRECTV has hinted strongly that its new HD satellite won't be operational until September, meaning it would be unlikely that the satcaster would add more high-def channels before then.

However, there are some indications that the satellite, which was launched in March, could be ready earlier than expected, perhaps as early as mid-August.

If so, it could mean that DIRECTV, which now has 95 national HD channels, could expand its high-def lineup to well over 100 channels next month. The company says the new satellite will give it the capacity to offer up to 150 national HD channels.


Will AMC's Mad Men be in high-def on DIRECTV?

While DIRECTV has been mum on new channel additions, the new HD networks could include such favorites as WGN, AMC, Fox News and ABC Family.

One indicator that DIRECTV's satellite is ahead of schedule came this week when Boeing announced that it was handing over 'in-orbit delivery' of the satellite to the satcaster.

The hand-over is a relative formality as a satellite nears its final phase before becoming operational. But it means that the satcaster can now start testing the satellite's signals as it prepares to turn it on.

Boeing said that the hand-over took place eight days ahead of schedule, which could bode well for an early operational launch.

In addition, DIRECTV subscribers have noticed that the company recently began some testing of signals from the satellite on local receivers.

TVPredictions.com will continue to monitor this development and file new reports as we receive them.



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DIRECTV's new HD satellite yesterday passed another test when the satcaster took 'on-orbit delivery' from the Boeing Company.

The hand-over is a relative formality as a satellite nears its final phase before becoming operational. But it means that the satcaster can now start testing the satellite's signals as it prepares to turn it on; the satellite is expected to be ready in September.

Boeing also said that the hand-over took place eight days ahead of schedule, which could bode well for an early operational launch.

Once operational, the DIRECTV 11 satellite will enable the satcaster to expand its high-def lineup to up to 150 national channels and local HD channels in more than 100 markets by this fall.

The satellite was launched last March by Sea Launch from the Pacific Ocean,

"The Boeing and DIRECTV teams worked together to ensure that this satellite and its systems are ready to begin broadcasting television programs in High Definition into homes throughout the United States" said Craig Cooning, vice president and general manager of Boeing Space and Intelligence Systems. "The spacecraft was handed over eight days ahead of schedule, and we are pleased to have a role in assisting DIRECTV with the expansion of their service to customers"

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Verizon FiOS Adds 15 HD Channels In Oregon
The telco now offers 42 high-def channels there.
By Swanni

Washington, D.C. (July 21, 2008) -- Verizon's FiOS TV service has added 15 new High-Definition channels in Oregon, the company announced today.

The telco, which now offers 42 high-def channels in Oregon, promised last year to offer 150 HD channels nationwide by the end of 2008.

However, Verizon Vice President Terry Denson recently told Multichannel News that the company is not 'obsessed' with channel counts. He would not commit to the 150 high-def channels, as promised last year.

The new high-def channels in Oregon are: Animal Planet HD; CNN HD; Big Ten Network HD; Bravo HD; CNBC HD+; History Channel HD; The Outdoor Channel 2 HD; Science Channel HD; Sci-Fi Channel HD; Smithsonian HD; TBS HD; TLC HD; Versus/Golf HD; USA Network HD; and The Weather Channel HD.

Verizon says it will soon add three Starz-owned high-def channels and two Showtime HD channels. But it did not give an exact launch date for those channels.

The telco says it will roll out more high-def channels in new markets during the next few months.

In Oregon, FiOS TV is available in parts of Beaverton, Cornelius, Damascus, Dundee, Durham, Forest Grove, Happy Valley, Hillsboro, King City, Lake Oswego, McMinnville, Newberg, Sherwood, Tigard, Tualatin, Wilsonville, and unincorporated areas of Washington and Yamhill counties. The service will launch in additional communities served by Verizon as the company expands its all-fiber network and secures local video-franchise agreements.


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Commentary
Is Verizon's FiOS Lying Again?
The telco retreats from its commitment to offer 150 high-def channels in 2008.
By Swanni

Washington, D.C. (July 20, 2008) -- On November 1, 2007, Verizon's FiOS TV issued a press release stating that it would increase its high-def lineup to 150 channels in 2008.

"Verizon FiOS TV customers will get even more of the High-Definition content they love as Verizon today announced plans for a fivefold increase in the number of HD channels, to 150 channels," the release stated.

However, in this week's Multichannel News, Verizon FiOS Vice President Terry Denson was asked by reporter George Winslow if his company was standing by its commitment.

"The important thing is that we expect to be the categorical leader," Denson said. "We are on our way. We haven’t arrived yet and we are still negotiating some agreements, which is why I want to shy away from mentioning specific channels."

Denson added: "A lot has been made of actual channel counts but we don’t obsess over channel counts."

Oh, really?

Well, Verizon FiOS seemed obsessed with "channel counts" last November when it issued that press release. In fact, the title of the release was:

"Verizon Plans Fivefold Increase in HD Channels on FiOS TV in 2008" (The telco had roughly 30 high-def channels at that time.)


Verizon stretches the truth again...

But with just slightly more than five months left in the year, suddenly Verizon doesn't think that "channel counts" matter.

Could it be because it's not going to offer 150 HD channels?

Could it be that Verizon never intended to offer 150 HD channels, but merely wanted to issue a press release saying that it would so it would keep customers from switching to DIRECTV or another TV provider?

Could it be that the '150 HD channel' boast was a lie from the start?

Harsh words, you might say. But Verizon's FiOS, which now offers less than 50 HD channels in most markets, has a long history of saying one thing and doing another. For instance:

* Verizon issued a statement in February that it was "hopefully finishing" negotiations to bring Major League Baseball's 'Extra Innings' package to its FiOS TV subscribers.

As of today, Verizon still hasn't added the baseball package.

* Verizon last year included a free Sharp LCD HDTV in a promotional offer for FiOS. However, after signing up a large number of new subscribers, the telco said it suddenly ran out of free Sharp TVs. Dow Jones reports that Verizon instead offered new customers a less attractive Magnavox set or a $200 Best Buy gift card as an alternative.

* Verizon ran a TV ad campaign earlier this year saying that CNET.com stated that its FiOS TV service is "near flawless." However, as it turns out, CNET actually never said that; the technology web site published an article saying that it was important for Verizon to offer a "near flawless" TV experience, given the intense competition in the TV category.

In our view, the telco is exhibiting a 'fast and loose" approach to the facts when promoting High-Definition TV and related TV services. We realize that as a relative newcomer to the field, Verizon must be aggressive in marketing its service as it tries to peel away longtime cable and satellite subscribers.

However, there's a line between aggressive and misleading and Verizon seems all too willing to cross that line.

In his final comments to Multichannel News, Denson tried to dismiss the '150 HD channel' issue by saying that Verizon would increase its HD On Demand menu this year.

"It is a complicated message to effectively impart to a potential consumer," Denson said. "It is a lot easier for a consumer to say, 'This provider has 150 channels and this one has 100 channels, so I’ll choose the one with 150 channels,' than the contemplative approach of choosing a provider with 100 HD channels and 500 HD programs available at any one time on demand."

At this point, whatever Verizon says, it can't be believed.


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DIRECTV & VOD: Who Are They Kidding?
The satcaster's new Broadband-enabled service is a no-starter.
By Swanni

Washington, D.C. (July 18, 2008) -- DIRECTV's advertising campaigns often mocks cable TV's claim that it has more 'HD choices" than satellite because of its Video on Demand service.

The DIRECTV campaign is justified in pointing out that the satcaster actually has far more HD channels than cable -- and that most consumers are not excited about watching high-def programs on demand; they want real channels, not choices.

So I would be remiss if I didn't point out that DIRECTV is now trying to play the same 'fool the consumer' game.

DIRECTV this month officially launched a Broadband-enabled Video on Demand service, which has more than 4,000 titles including about 150 in high-def.

In a recent article in Multichannel News, DIRECTV executive vice president Eric Shanks is quoted as saying that cable now no longer has an advantage when it comes to VOD.

“With our launch of our on-demand service, not only is cable playing catch-up in the (HD channel) world, they don’t have the differentiator of on demand any more,” said Shanks. "I'm not quote sure where they will head" now with their marketing efforts."

Well, let me help Mr. Shanks out.

All cable needs to do is explain to consumers how difficult -- how cumbersome -- how inconvenient -- it is to install DIRECTV's new Video on Demand service.

Don't believe me. Just read this little instructional paragraph from DIRECTV's own web site:

"To begin receiving the DIRECTV on Demand service, customers can choose professional installation or request a self-installation kit. Customers will need broadband high-speed internet access, a router or Internet gateway with an available Ethernet port, and equipment to network the HD DVR or R22 DVR. Options to connect the receiver to the internet include: Internet Connection Kit (HomePlug® networking device), Ethernet cable or wireless (requires external adapter)."

Does that sound easy to you? Convenient? Enticing?

Not to me.

Cable's On Demand service can be easily accessed by clicking on the On Demand channel and then scrolling through the menus until you find a show you want to watch. No special equipment is needed.

But DIRECTV's On Demand service requires a Broadband connection, a router or Internet gateway with an Ethernet port -- and God knows what else -- to just get started.

For most DIRECTV customers, that's a non-starter. You already have nearly 100 HD channels to watch; why on Earth would you go through a Mr. Science experiment just to get access to 150 additional high-def titles?

Answer; You wouldn't.

For marketing purposes, DIRECTV will continue to say that its new Video on Demand service is just as good as cable's, if not better.

But I say it's significant -- very significant -- that Shanks refused to tell Multichannel News how many customers are downloading shows via the On Demand service.

When a company is doing well, it releases the numbers. When it's not, it doesn't.


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PS3: HD Rentals Only
The new download service does not permit buying high-def programs.
By Swanni

Washington, D.C. (July 18, 2008) -- Sony's new movie download service on the Play Station 3 video console does not permit viewers to purchase high-def programs.

That's according to an article by Home Media Magazine.

PS3 owners can rent movies in HD, but they can only purchase them in standard-def, the publication reports. The difference is that consumers can not keep the movie stored on the PS3 hard drive. Once it's viewed in high-def as a rental, the movie can not be accessed again.

In an interview with Home Media, Grace Chen, a Play Station store senior manager, did not reveal why the new download service has a HD-rental only policy other than to say it was the decision of the Hollywood studios.

The studios could be concerned that PS3 owners could illegally copy the high-def movies and sell them on the Net if they are allowed to store them.

Chen also told Home Media that PS3 owners will not be allowed to download a TV show multiple times, although she did not specify the limitations.

Sony announced on Tuesday that it was launching the movie download service. The announcement, which had been expected for weeks, followed Monday's news that Microsoft will add a NetFlix movie streaming service to its XBox 360 video game console.

While the NetFlix service apparently will not include high-def movies, Microsoft does offer HD TV shows and movies on its XBox Live service.


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Amazon Opens VOD Store -- But No HD
The films will also be available on Sony high-def sets.
By Swanni

Washington, D.C. (July 17, 2008) -- Amazon.com today will launch a Video on Demand store where customers can watch any of 40,000 movies and TV shows immediately after ordering them.

That's according to an article by The New York Times.

However, the online store will not include high-def programs. Amazon, the Times reports, will also make the service available on Sony Bravia High-Definition TVs via a $300 Bravia Internet module. However, the Sony service will also not include HD movies or TV shows.

By launching the VOD streaming service, Amazon joins what is becoming a crowded field. TiVo, NetFlix, Apple, Sony and Microsoft are all now offering streaming or downloaded movies and TV shows over the Net to home TVs.

The Times reports that the Amazon service would be made available to a limited number of customers initially before expanding later this summer.



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Sony Launches Next-Gen Blu-ray Player
The player will cost around $400.
By Swanni

Washington, D.C. (July 16, 2008) -- Sony says its next-generation Blu-ray player is now available at Sony Style retail outlets and at the company's web site, SonyStyle.com.

The player, model BDP-S350, is priced at around $400, the company said in a press announcement released today.

At $400, the player is priced at roughly the same as Sony's first-generation model, the BDP-S300. Some analysts have speculated that Sony would quickly drop the price on the first-generation player when the second-generation model was available. But there was no word today on a lower-priced BDP-S300.

The new player supports BonusView (picture-in-picture) and it's BD-Live ready, which means it will display new interactive features on Blu-ray discs.

Sony says that the player's Ethernet port can also access firmware updates and Net-based ITV content. A firmware update enabling BD-Live is planned later this year.

The player also includes a 'quick start-up mode' which should improve its boot-up time to a few seconds, the company states.

"We leveraged our expertise in film production and digital technology to build a machine that movie fans would truly love," said Chris Fawcett, vice president of marketing for Sony Electronics. "An advanced Blu-ray Disc player like the BDP-S350 is a must for every HDTV owner because it delivers the ultimate video and sound quality, while unlocking features you can't find on DVD, downloads or video on demand."

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Sony Adds HD Downloads to PS3
The company says the major studios have signed on.
By Swanni

Washington, D.C. (July 16, 2008) -- Sony yesterday launched a movie download service on the Play Station 3 that includes standard-def and High-Definition programs.

The announcement, which had been expected for weeks, follows Monday's news that Microsoft will add a NetFlix movie streaming service to its XBox 360 video game console. While the NetFlix service apparently will not include high-def movies, Microsoft does offer HD TV shows and movies on its XBox Live service.

The two companies continue to battle for the nation's living rooms with everything from Blu-ray players to download services as well as innovative games.

Sony said yesterday that it had signed up the major studios including Fox, Disney and Warner to offer movies on its download service, according to the Associated Press.

Additionally, company officials said the downloads could be transported from the console to the Play Station Portable handheld device.

As part of its new strategy, Sony said it would introduce an 80GB Play Station 3 for $399 in September.

“This new 80Gb PS3 is perfectly suited for high-definition downloads of games, movies and more,” said Jack Tretton, president of Sony Computer Entertainment.

Commentary:
Despite Wall Street's giddiness over downloads -- HD or non HD -- they will be no more than a niche service for years to come. As I keep pointing out, Americans are not tech savvy; the concept of video downloads on their TVs is too complicated to generate mass acceptance.

Plus, HD downloads to date are not really, well, in HD. The picture quality is far inferior to Blu-ray high-def disc or even what you see on cable or satellite.

So, tech intelligentsia, keep trying to flog this horse. It will be stuck in the starting gate for some time to come.


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Best Buy Sells Blu-ray Player For $329
The discount is expected to be first of a wave.
By Swanni

Washington, D.C. (July 16, 2008) -- Best Buy is now selling the Insignia-branded Blu-ray player for $329 -- $20 below the initial launch price set in May.

That's according to an article by Home Media Magazine.

The discount, albeit small, is expected to be the beginning of widespread price cuts on Blu-ray player and discs in the fourth quarter.

Blu-ray makers are expected to issue new models in late summer, which will encourage retailers to discount older models for the holiday season.

The Insignia Blu-ray player is a 'Profile 1.0 player' which also includes $100 in discount coupons on Blu-ray movies. (Profile 1.0 is the basic Blu-ray player, meaning it does not include new interactive features.)

Best Buy spokesman Brian Lucas said the discounted Insignia player is intended to spark interest in Blu-ray among consumers.

Home Media notes that Wal-Mart is selling a Magnavox Profile 1.0 player for $298, the lowest price for a retail Blu-ray model.


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Dish's New HD Satellite Set For Launch
The satellite is scheduled for launch today.
By Swanni

Washington, D.C. (July 15, 2008) -- Dish Network today is scheduled to launch a new satellite designed to expand its High-Definition capacity.

The launch's success is considered crucial to the satcaster's long-term hopes of competing with DIRECTV, telcos and the cable TV operators. The company's first satellite launch this year failed when the rocket did not reach its proper orbit. (The company has a third launch planned later this year.)

Sea Launch, which will launch the satellite tonight, will provide live coverage at its web site starting at 10:10 p.m. Pacific time (1;10 a.m. ET on July 16.) Dish Network also plans to offer mission coverage on its channel 101. Liftoff is planned for 10:21 p.m. Pacific time.

Dish recently announced that it's adding 17 national HD channels on August 1, which it says will bring its total to 100 HD channels, roughly the same as rival DIRECTV.

However, the company needs more capacity to keep pace with DIRECTV, which says it will have the capacity for up to 150 HD channels by year's end.

The Wall Street Journal today quotes on Wall Street analyst Craig Moffett as saying the satcaster has a "lot riding on a successful launch." Moffett notes the first launch failure and recent unflattering quarterly reports that show Dish's subscriber growth waning.



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Microsoft's XBox to Offer NetFlix Films -- But No HD?
The agreement is revealed on Monday.
By Swanni

Washington, D.C. (July 15, 2008) -- Microsoft will soon be able to stream thousands of Netflix movies over the Net directly to the home. However, the lineup apparently will not include High-Definition shows and films.

That's according to an article by the Associated Press.

The Microsoft-NetFlix deal was revealed yesterday at the E3 Media & Busiiness Summit in Los Angeles. Starting this fall, owners of Microsoft's XBox 360 game console will be able to stream 10,000 movies and TV shows for viewing on TV sets.

NetFlix has launched a similar service with its set-top partner Roku, which allows subscribers to stream movies and shows over the Net. But the Microsoft deal dramatically expands the NetFlix streaming offering, which is also available at NetFlix's web site.

XBox has sold more than 10 million XBox consoles in the United States, according to the AP.

While the XBox's now permits owners to download some high-def shows and movies, the NetFlix announcement does not say that HD will be part of its offering. NetFlix does not offer high-def content on its Roku set-top or its streaming service at its web site.

The Microsoft/NetFlix service will require XBox owners to subscribe to NetFlix for a minimum of $9 a month.


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Blu-ray Sales Booming; Wall Street Analysts: Blooming Idiots
One analyst says Wall Street doesn't understand the home video industry.
By Swanni

Washington, D.C. (July 14, 2008) -- Consumers have spent $194 million on Blu-ray high-def discs in the first six months of 2008 -- a 350 percent over sales of both Blu-ray and HD DVD titles in the first six months of last year.

That's according to an article by The Hollywood Reporter.

The publication adds that Bluj-ray sales revenue alone should triple the amount of digital downloading revenue in 2008. One analyst says the high-def disc's advantage is evidence that Wall Street doesn't understand the tech industry.

Many Wall Street analysts have said digital downloads -- downloading movies over the Net directly to your home TV -- will soon replace both Blu-ray and the standard-def DVD.

"Most analysts are techno-geeks with plenty of money and not much time, while most Americans are not technically savvy, and they have plenty of time but not much money," said Tom Adams, president of Adams Media Research. "The fact is, despite what many on Wall Street seem to think, there is very little digital downloading going on. We're talking about $118 million in 2007 spending, and about $254 million this year -- so against a $24 billion packaged media market (Blu-ray and standard-def DVD) it's really not making much of a dent at this point."

The Hollywood Reporter writes that unit sales of Blu-ray discs were up 340 percent in the first half of 2008, with the number of discs sold around 7.4 million.

I Am Legend is the leading high-def disc seller with 305,000 unit sales, followed by National Treasure 2: Book of Secrets with 145,000.

Commentary:
Tom Adams could not be more right. From DVRs to the Apple TV to Interactive TV to now Blu-ray, Wall Street analysts have been dead wrong on predicting the future of nearly every new TV technology.

Financial analysts, many of which are based in New York and have incomes that far exceed the average person, do not understand the average home viewer; they see the industry through their eyes only, and therefore, too often hype new tech products as the next big thing.

Why? Because they think they are cool.

But digital downloads is their latest mistake with the analysts saying millions of home viewers will soon connect their TVs to Net-capable devices.

However, the analysts forget two things: most Americans are not tech-savvy and are confused by Internet TV devices. And two, it takes too damn long to download a high-def movie over the Net.

It will be still be a few years before Blu-ray becomes a mass audience product. But it will be years and years before digital downloads are ready for primetime.

All I can say is that any investor who listens to a Wall Street analyst on TV technology issues should have his head examined because you're almost guaranteed to lose your money.



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Sony: No PS3 Price Cut Coming
Company chief says Xbox cut shows PS3 is winning.
By Swanni

Washington, D.C. (July 14, 2008) -- Sony Chairman Howard Stringer says the company does not plan to lower the price of its $399 Play Station 3.

Stringer made the remarks Friday to Bloomberg News following reports that Microsoft is cutting the price of its XBox 360 from $349 to $299.

The Sony chief said the Microsoft price cut is evidence that the XBox is falling behind the PS3 in overall sales. According to The NPD Group, PS3 sales have surpassed the XBox this year, although both consoles still trail Nintendo's Wii.

"We're not considering lowering the price," Stringer said. "We don't have to be nervous about what Xbox 360 does. We're in fine shape."

Since the PS3 has a Blu-ray player inside, a price cut would help drive sales of the high-def disc as well.


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Warner Moves to Cut Blu-ray Prices
The price for some older titles should be under $17.
By Swanni

Washington, D.C. (July 13, 2008) -- Warner Home Video is planning a major campaign this fall intended to lower prices for Blu-ray movies.

That's according to an article by Video Business.

Quoting retailers, the publication says Warner will offer a rebate program allowing stores to order catalog titles for around $11. That could allow retailers to offer such titles as The Fugitive, Enter the Dragon, Clockwork Orange, The Shining, The Aviator, Road Warrior and Swordfish for $15 or less.

Many of those titles now cost around $20 at retail and online sites such as Amazon.com.

Blu-ray enthusiasts have long complained that the high-def disc cost too much, sometimes double the cost of the standard-def DVD.

Video Business says Warner will also offer retailer rebates for some newer Blu-ray titles such as The Departed and Ocean's 13, which could bring their price down to $17 to $20.

“They are trying to get this software business going,” one source told Video Business. “But it’s really a double-edged sword. We’re happy to be able to offer it, but it can be a slippery slope. Consumers might get in the mindset that they want everything discounted. If that becomes the case, we will shorten the life of Blu-ray just like we did with DVD.”


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Microsoft to Cut XBox Price; Blu-ray Impact Possible
The new price is expected to be $299.
By Swanni

Washington, D.C. (July 11, 2008) -- Microsoft will soon cut the price of its Xbox 360 Pro Model from $349 to $299, according to Reuters.

The new price will make the XBox 360 $100 less than Sony's Play Station 3, which retails for $399. Microsoft's move could pressure Sony to offer a similar price cut in the coming weeks.

If so, that could boost PS3 sales -- and the Blu-ray high-def disc industry because the PS3 console has a Blu-ray player inside.

Reuters reports that Microsoft plans to announce the lower price for the XBox 360 with a 20 GB hard drive this weekend prior to next week's E3 gaming trade show.

It's been rumored that Microsoft would cut the XBox price, particularly in recent weeks after sales reports indicated that PS3 is now outselling the XBox.


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Dish Network to Add 17 HD Channels in August
The satcaster says the additions will reach the 100 HD channel mark.
By Swanni

Washington, D.C. (July 10, 2008) -- Dish Network today announced that it will add 17 national HDTV channels on August 1, which will give it 100 national HD channels overall.

The satcaster promised in January that it would offer 100 national HD channels by year's end. DIRECTV, Dish's top satellite rival, now offers around 95 national HD channels, but has promised to deliver up to 150 national HD channels by year's end.

“In January, we promised our customers that DISH Network would boost our national HD channel lineup to 100 by year’s end. Today, we are proud to say that in less than one year, not only did we deliver on our commitment, but we exceeded it,” said Eric Sahl, senior vice president of programming for DISH Network. “We continue our pledge to DISH Network subscribers to add more national channels and local HD markets, as well as offer the best sports and movies in HD.”

The new HD channels that will be added on August 1 are:

ActionMax HD (DISH Network Ch. 313)
CBS College Sports HD (Ch. 152)
Lifetime HD (Ch. 108)
Lifetime Movie Network HD (Ch. 109)
Planet Green HD (Ch. 194)
Encore HD (Ch. 340)
HBO 2 HD (Ch. 301)
HBO Comedy HD (Ch. 307)
HBO Family HD (Ch. 305)
HBO Latino HD (Ch. 309)
HBO Signature HD (Ch. 302)
HBO West HD (Ch. 303)
HBO Zone HD (Ch. 308)
Starz Comedy HD (Ch. 354)
Starz Edge HD (Ch. 352)
Starz Kids & Family HD (Ch. 356)
Starz West HD (Ch. 351)

Dish also said it's introducing a new programming package called TurboHD, which is four different HD-only packages starting with a $24.99 a month offer.


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