August: Bad Month For Blu-ray
Disc sales fall thanks to lackluster lineup of releases.
By Swanni
Washington, D.C. (August 28, 2008) -- Blu-ray disc sales have fallen sharply in the first few weeks of August, according to Home Media Magazine which tracks the numbers.
For example, Blu-ray sales revenue fell 10 percent, or $6.19 million, for the week ending August 17, the lowest level since the publication has tracked the numbers.
Blu-ray enthusiasts quickly noted that the month has been filled with lackluster releases such as Jumper, 10,000 B.C. and The Bank Job. However, the decline shows that Blu-ray's sales momentum is at the mercy of what the big studios release and when.
Batman Begins, which was released several weeks ago, has been the top Blu-ray seller for the month thus far. Top Gun and Starship Troopers also sold well in the category.
Blu-ray sales have accounted for roughly eight percent of all DVD sales for the month, a slight decline from previous months.
Blu-ray companies believe the fall season will show immediate and dramatic improvement in both disc and player sales with the release of several blockbuster titles, starting with Iron Man on September 30.
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TiVo: Comcast to Expand DVR Service
The company says the cable op will soon offer it in more cities.
By Swanni
Washington, D.C. (August 28, 2008) -- TiVo said yesterday that Comcast next month will "light up a full marketing campaign" for the company's DVR service.
The campaign will include announcements of more cities where Comcast will offer TiVo, company CEO Tom Rogers said in an investors call following release of TiVo's second quarter report.
Comcast has offered TiVo in New England for a few months, but Rogers said the cable operator recently added it to Connecticut. However, the executive said more cities will be more announced in September.
Rogers said the following quote came from a Comcast executive he recently spoke to:
"Refinements to optimize the product’s performance have been mostly completed, significantly improving the user experience. Importantly, we intend to light up a full marketing campaign around TiVo in September and upon this occurring, we will be announcing multiple additional markets to which TiVo will be rolled out through next year."
TiVo signed a software licensing deal with Comcast more than two years ago, but the cable op's rollout has been slow due to a variety of technical issues. The DVR service is counting heavily on Comcast to help boost its sagging subscriber numbers.
TiVo reported that it had 3.6 million subscribers at the end of the second quarter, compared to 4.2 million a year ago.
Rogers said Cox Cable is expected to launch TiVo in the New England market later this year.
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DIRECTV has added local High-Definition channels in three new markets, bringing its total to 82 cities.
The satcaster says the 82 cities with local high-def coverage represents more than 77 percent of U.S. TV households. DIRECTV adds that it will offer local HD channels in 121 cities by year's end.
DIRECTV yesterday said it added WTAJ/CBS and WJAC/NBC in Johnstown-Altoona; WJBF/ABC. WRDW/CBS and WFXG/Fox in Augusta, Georgia; and WTVC/ABC, WDEF/CBS, WDSI/Fox, and WRCB/NBC in Chattanooga, Tennessee.
The company said it hopes to offer additional local HD stations in each market as they become available. Sometimes, cable and satellite TV providers can not offer all local channels in their lineups due to compensation disputes with the local stations.
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Disney to Release More Classics On Blu-ray
The list includes Pinocchio and Snow White.
By Swanni
Washington, D.C. (August 28, 2008) -- Disney yesterday announced five new classic animated features that will be released on Blu-ray high-def disc over the next two years.
The studio, which is heavily promoting the release of Sleeping Beauty on Blu-ray on October 7, said it also release Pinocchio, Snow White and the Seven Dwarfs, Fantasia, Fantasia 2000 and Beauty and the Beast on high-def disc.
Disney said each movie will be available for a limited time only and will include rarely seen footage and new bonus features.
"We are excited to announce a magical slate of Platinum titles for the first time on Blu-ray High-Definition, this celebrated collection of animated features demonstrates Disney's commitment to deliver great content," said Bob Chapek, worldwide president of Walt Disney Studios Home Entertainment.
The classic films will also include BD-Live features, will enable home viewers to download related material over the Internet. Disney believes the interactive experience will revitalize the home video industry.
"The landscape for the Blu-ray format is very healthy, and we believe that the enhanced movie experiences that the format provides, such as Disney's BD-Live network, offer consumers the chance to reinvent the experience of watching movies in their homes, and the interactivity and connectivity that is being provided will truly make the family room relevant again," said Chapek.
Disney said Pinocchio will be available on Blu-ray in the spring of 2009 while Snow White will be released in the fall of 2009. The two Fantasia films will get a 2010 release.
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Swanni Predicts: Blu-ray Prices to Fall Under $200
The low price will be available in the next 6-8 weeks.
By Swanni
Washington, D.C. (August 26, 2008) -- Blu-ray player prices are starting to fall and some players will be available for less than $200 in the next six to eight weeks.
As predicted here months ago, Blu-ray makers are now introducing new models with interactive features to kick off the fall season. The new players are enabling retailers to lower prices on older models to unprecedented lows.
For instance, at Amazon.com, Sony's BDP-S300 is now available for $229 -- roughly $170 less than the suggested retail price. (Sony recently introduced an ungraded model, the BDR-S350, for $399 suggested retail, although Amazon is selling that newer model for $355.)
Panasonic's DMP-BD30K, which normally retails for $399, is now $299 at Amazon.com.
Additionally, big box retailers such as Best Buy are now selling the Insignia Blu-ray player (model: NS-BRDVD) for $279.
Until now, Blu-ray players were in short supply, forcing retailers to keep prices higher than consumers expected.
Why were the players in short supply?
Blu-ray manufacturers were caught by surprise last spring by HD DVD's sudden departure from the format war and were not ready to ramp up production. Consequently, with the exception of the Play Station 3, which has a Blu-ray player inside, Blu-ray sales have been disappointing following the format's victory over HD DVD.
But I predict that the lower player prices combined with falling Bu-ray disc prices will dramatically boost Blu-ray sales this holiday season.
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Dish Network: 1st to Offer All MPEG-4
The satcaster says it delivers a better picture.
By Swanni
Washington, D.C. (August 25, 2008) -- Dish Network says it's the first TV provider to deliver all SD and HD programming in the MPEG-4 video coding standard.
In a statement released today, Dish Network says MPEG-4 offers a superior picture to MPEG-2, which is used in part by other TV providers. Satellite rival DIRECTV uses a mix of MPEG-2 and MPEG-4 technologies to deliver its SD and HD channels.
Dish said today that the move to all-MPEG-4 delivery of channels is another first for the company. The satcaster recently launched a PPV movie service that it says offers 1080p high-def video, something that DIRECTV says it will do later this year.
“DISH Network once again leads the pack in providing customers with an unparalleled entertainment experience. Our complete MPEG-4 solution – which will offer up to 150 HD channels by the end of the year – uses the most advanced technology in the industry to deliver the best quality picture to any television set in the home, perfect for those who have or are considering upgrading to high definition,” said Jessica Insalaco, Dish's chief marketing officer.
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Vudu: 1,000 Movies In HD?
The Video on Demand service makes a bold promise.
By Swanni
Washington, D.C. (August 25, 2008) -- VUDU, the Video on Demand set-top, is making promises that it will soon offer more than 1,000 High-Definition movies.
That's according to an article by CEDIANews.com.
The Vudu set-top, which starts at $295, enables users to download movies over a high-speed Internet connection. The box, which can also store movies, includes both standard-def and HDTV films.
However, Vudu has struggled to generate interest due to competition from traditional TV services such as cable and satellite and a general 'set-top' fatigue among Americans.
But Mark Donnigan, national dealer channel manager, says the company will announce "some really exciting things" at next week's CEDIA Expo, which begins September 4 in Denver.
"In a very short time we'll have 1,000 HD titles," Donnigan told CEDIANews.com. "That's more than Blu-ray. We have some huge deals."
Donnigan was referring to the catalog of Blu-ray high-def discs, which now number fewer than 1,000.
The Vudu official, however, refused to provide additional details such as when the expanded HD lineup would be available or if set-tops that offer it would cost more.
CEDIANews.com did report that Donnigan said the most of the new features would be available only on Vudu's XL box which now retails for around $1,000.
Donnigan also said Vudu would deliver 1080p content over Component cables, something the studios have been hesitant to do because of illegal copying concerns.
"We'll have (1080p) HD over component," he said.
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DISH Network Sells $40 Digital TV Converter
Consumers can now buy a converter without having to spend their own money.
By Swanni
Washington, D.C. (August 21, 2008) -- Dish Network has finally launched the much-anticipated $40 Digital TV converter box, model TR-40 CRA.
At that price, consumers can now buy a converter box with a $40 coupon provided by the federal government without having to spend their own money. Other companies have been selling converter boxes for around $50-70.
On February 17, 2009, all local broadcasters must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to watch television.
The federal government last January began accepting applications for $40 coupons for people to buy Digital TV converter boxes which will permit analog TVs to display the new digital signals. Americans are eligible for two coupons each.
Dish, which first announced it would offer a $40 converter last January, said it can be purchased nationwide at participating Dish Network retailers. (For more information, call 1-888-638-9912 )
"We made a commitment to sell a $40 coupon-eligible converter box – making it free when a government coupon is applied – and are delivering on that commitment with our entry-level TR-40 CRA,” said Tom Stingley, executive vice president of sales and distribution for DISH Network.
Dish says the TR-40 CRA includes a 'setup wizard,' an electronic programming guide with up to seven days of listings, parental control, program search and signal strength pop-up to help troubleshoot lost signals.
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DIRECTV: Swanni Is 'Misguided' On HD Numbers
The satcaster responds to our criticism of its high-def number count.
By Allison Moore
Washington, D.C. (August 19, 2008) -- DIRECTV says Swanni's contention that it's cooking the books when it says it has 130 HD channels is "misguided."
Phillip Swann, president of TVPredictions.com, aka Swanni, wrote in a commentary last week that DIRECTV is wrong in saying that it has 130 high-def channels because it's counting Pay Per View channels.
"PPV channels are not channels," Swanni wrote last week. "If you tune to DIRECTV's channel 144, let's say, to watch The Ruins on PPV HD today, it might not even be on. The satcaster's PPV movies start from 30 minutes to every two hours so if you don't tune in at just the right time, you can't watch the movie. The on-screen message says the movie is not available. How can that be called a channel?
"It's not even a "choice" unless you tune in at the right time," Swanni added, referring to cable TV's use of the word, "choice" to explain its HD VOD lineup. "However, DIRECTV now refers to more than 30 different PPV HD slots as 'channels" so it can claim it has 130 HD channels."
But in an interview with Wired.com, DIRECTV spokesman Darris Gringeri said Swanni is "misguided."
"We think his (Swanni's) thinking is misguided," said Darris Gringeri, a DIRECTV spokesman told Wired. "We totally disagree -- pay-per-view clearly qualifies as a channel."
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CBS' Amazing Race: Still Not In HD
The show's producer says it's not a priority.
By Swanni
Washington, D.C. (August 19, 2008) -- CBS' The Amazing Race will begin its 13th season next month, but it will still not be produced in High-Definition.
That's according to an article by the Associated Press.
Amazing Race fans were hopeful that the network would begin airing the reality/adventure show in high-def this year after announcing earlier this year that Survivor would be in HD this fall.
However, Amazing Race executive producer Bertram van Munster tells the AP that CBS still hasn't decided on whether to shoot the program in HD.
With the program's season debut just six weeks away (September 28), it seems safe to say that this season will not be in high-def. (The season has already been filmed; van Munster is now scouting venues for a 14th season.)
"I don't think it's a priority," van Munster said of the network's stance towards switching the program to HD.
This season will start at the Los Angeles Memorial Coliseum and follow contestants over 23 days as they travel to Brazil, Russia, India and Bolivia.
Commentary:
Amazing! Just amazing.
No, The Amazing Race is not amazing. What's amazing is that the show producer says producing the show in high-def is not a priority. This is 2008 and more than 30 million homes now have high-def sets -- and you're telling me that the network and/or the show's producer doesn't think it's important for the program to be in HD?
Let's see how amazing their Nielsen ratings are when the season is over.
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Toshiba Releases 'Improved' DVD Player
But the company is careful not to draw comparisons with Blu-ray.
By Swanni
Washington, D.C. (August 18, 2008) -- Toshiba today will launch a new $149 DVD player that it says will significantly enhance the image of a standard-def DVD.
That's according to an article by the Associated Press.
Toshiba was the chief backer of HD DVD, the high-def disc rival to Blu-ray. But the company pulled the plug on HD DVD at the end of March due to disappointing sales and overwhelming studio support for Blu-ray.
At the time of the exit announcement. Toshiba executives hinted that it would soon release a standard-def DVD player that could compete with Blu-ray rather than endorse its rival.
However, the AP today reports that Toshiba was careful not to compare the image on the new DVD 'upconverting" player (model: XD-E500) with the Blu-ray.
"If you want Blu-ray, go get Blu-ray. This product is meant to improve playback of DVDs," said a Toshiba spokesman.
In fact, in a presentation to reporters last week, Toshiba did not even demo the player's image next to the image of a Blu-ray player. Instead, it played the same disc on the XD-E500 next to a standard, upconverting DVD player.
"The new player produced a subtle but noticeable sharpening of the image," the AP reported, which added that Toshiba's XDE technology can't surpass the image detail of a Blu-ray high-def disc.
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DIRECTV Cooks the HD Numbers
The satcaster adopts cable TV's strategy of referring to PPV movies as channels.
By Swanni
Washington, D.C. (August 15, 2008) -- DIRECTV yesterday disappointed many High-Definition customers by adding just four new HD networks.
With the launch of a new satellite last March, many high-def fans were expected more channels, especially such in-demand networks as AMC HD, WGN HD and Fox News HD
Well, I would advise DIRECTV subscribers to just relax. The satcaster will add more HD channels in 2008 -- and sooner than later. Consider yesterday just an appetizer.
However, one thing that was disturbing about DIRECTV's announcement yesterday was that the satcaster claimed it now had 130 HD channels. Before yesterday's launch, DIRECTV said it offered 95 high-def channels.
So, how did it go from 95 to 130 with the addition of just four high-def networks?
The satcaster also converted nine regional sports networks to full-time (24/7) channels and it added 18 PPV HD channels. By DIRECTV's estimation, that brings it to 130.
Even if you count the nine sports channels, the 18 PPV channels and the four high-def networks, that would seem to leave it a few short of 130. But let's give DIRECTV the benefit of the doubt and say its count is correct.
However, here's the real problem:
PPV channels are not channels. If you tune to DIRECTV's channel 144, let's say, to watch The Ruins on PPV HD today, it might not even be on. The satcaster's PPV movies start from 30 minutes to every two hours so if you don't tune in at just the right time, you can't watch the movie. The on-screen message says the movie is not available.
How can that be called a channel?
However, DIRECTV now refers to 30 different PPV HD slots as 'channels" so it can claim it has 130 HD channels.
Not without coincidence, DIRECTV did this just a week after Verizon's FiOS and Dish Network announced that they now have 100 HD channels. In the ever escalating race to be the HD leader, DIRECTV has cooked the numbers so it can say it has the most high-def channels.
Oddly, DIRECTV has sharply criticized cable TV operators who have said they have more 'HD choices" than satellite because they offer more HD movies and TV shows in their Video on Demand lineups. Cable uses the 'choices' ploy because it has fewer actual channels than satellite.
However, the satcaster has now borrowed from cable's playbook and has begun calling PPV movies "channels" so it can say it has more HD channels than Verizon and Dish Network.
But whether it's cable or satellite, 'choices' are not channels.
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DIRECTV Adds 4 HD Networks
The satcaster also adds some PPV channels.
By Swanni
Washington, D.C. (August 14, 2008) -- DIRECTV today added four new High-Definition networks and 18 new HD PPV channels.
The new channels are: Planet Green HD (channel 286); ABC Family HD (channel 311); Showtime Showcase HD (channel 541); and Showtime Extreme HD (channel 542)
The satcaster also added 18 new HD PPV channels and it converted nine regional sports networks to 24 hours a day.
The new 24/7 regional sports networks are:
FSN South; FSN Midwest; Sports South; FSN Pittsburgh; FSN North; FSN Rocky Mountain; FSN Arizona; Sun Sports; and FSN Northwest.
DIRECTV launched a new satellite in March (DIRECTV 11) that will enable more high-def expansion. The satcaster says the new satellite -- and an additional one that will be launched next year -- will give it capacity for 200 national HD channels.
The satcaster did not say if the DIRECTV 11 satellite will permit it to offer more high-def channels this fall.
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Verizon's FiOS Adds 18 HD Channels in Pittsburgh
The telco now offers 45 high-def channels there.
By Swanni
Washington, D.C. (August 12, 2008) -- Verizon's FiOS TV service has added 18 new High-Definition channels in the Pittsburgh area.
The telco says it now offers 45 high-def channels in the Pittsburgh area, more than the local Comcast system.
Verizon says it will offer "all available major HD programming" by year's end, but would not provide a specific number of channels. The company once said it would provide 150 HD channels by year's end.
The 18 new high-def channels include Animal Planet, TLC, Science Channel, Smithsonian Channel, CNN, CNBC, Lifetime, Bravo, TBS, USA, Cinemax, HBO, History Channel, Weather Channel and SCI Fi.
Verizon said it will also five new HD channels from Starz and Showtime later this year: Starz Edge, Starz Comedy, Starz Kids and Family, Showtime West and Showtime 2. However, the telco did not give a specific launch date for those channels.
The company also announced that consumers who sign up for FiOS TV between now and October 4 are eligible for a year's free use of either an HD DVR or an HD Home Media DVR.
"FiOS TV is the only service to consider if you want the ultimate HD experience," said Phil Brown, Verizon vice president of marketing for Pennsylvania and Delaware. "With our increased number of HD channels, along with HD video-on-demand programming and our current HD DVR and premium movie promotion, we're blowing cable away."
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Liberty's Malone Downplays DIRECTV-Dish Merger
The executive notes possible regulatory obstacles.
By Swanni
Washington, D.C. (August 12, 2008) -- Liberty Media Chairman John Malone yesterday said a merger between Dish Network and Liberty-controlled DIRECTV would likely face serious regulatory obstacles.
The merger rumor surfaced last week after some analysts speculated that federal officials could be inclined to support it, following their approval of the XM-Sirius satellite radio merger.
DIRECTV and Dish tried to merge several years ago, but the FCC rejected it in 2002 on grounds that it would be anti-competitive.
In an earnings call following release of the company's second quarter report, Malone noted that the merger would be "very synergistic," meaning the company could save money on duplicate efforts and combine resources on costly projects, such as the expansion of their high-def lineups.
But Malone and other Liberty executives expressed surprise that analysts and journalists believe that the FCC would approve the deal.
“I don’t understand why the journalists all of a sudden discovered the potential of a merger of Echo (the former name for Dish Network) DIRECTV," Malone said. “We’ve talked about it frequently in the past. It would be very synergistic if it were doable. However, we don’t see that the regulatory environment has changed since the last time we made comments on the subject. We think it would be problematic to try and merge the two companies in the current regulatory environment.”
Liberty CEO Greg Maffei echoed Malone's remarks, saying that market conditions have not changed to the extent that it would encourage federal regulators to approve the deal.
“Obviously, there are a ton of synergies out there. That deal had challenges once. Whether it could be done today in a different environment, I don’t know enough about," he said.
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AT&T's U-Verse Won't Commit to HD Numbers
The telco now offers around 45 high-def channels.
By Swanni
Washington, D.C. (August 11, 2008) -- AT&T's U-Verse TV service now offers roughly 45 High-Definition channels, but it won't say when it will significantly expand its high-def lineup.
In an interview with Multichannel News, AT&T Executive Vice President Dan Work was asked how many HD channels the company would offer at the end of 2008 and 2009.
York said the telco would provide 100 HD channels "in the near-term," but would not elaborate on what that meant.
"We haven’t announced our long-term HD ramp plans, although north of 100 is clearly in our near-term sights," York said. " We provide more HD linear channels than our cable competitors in almost every market. And we’ll soon be launching HD video-on-demand."
Telco rival Verizon recently launched a 100-HD channel lineup in New York, but has apparently retreated from an earlier commitment to offer 150 high-def nationwide by year's end.
Likewise, York seemed reluctant in the Multichannel News interview to commit to a future high-def lineup, noting that contracts must be worked out with the programmers.
"But bear in mind that, unfortunately, content providers want to be paid for their programming. So we have to offer something with good value to our customers," York said.
York also refused to say when U-Verse would offer HD VOD service.
"We haven’t announced that, but it eventually will be across the entire footprint (in each market)," York told Multichannel News.
York remained committed to AT&T's pledge to obtain 1 million U-Verse TV subscribers by year's end. The company reported 549,000 subs at the end of the second quarter.
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DIRECTV Speaks Out On HDTV
The satcaster releases its second quarter report.
By Swanni
Washington, D.C. (August 8, 2008) -- DIRECTV today reported that it added 129,000 net new subscribers in the second quarter, compared to 128,000 a year before.
The satcaster also reported a 1.6 percent increase in second quarter net income and credited the company's expanded High-Definition lineup for both.
In a conference call with Wall Street analysts, DIRECTV executives commented on a number of HD-related issues. Here's a summary of those remarks:
DIRECTV CEO Chase Carey on whether Dish Network's HD lineup now equals his company's lineup. (Both companies say they are now around 100 national HD channels.)
"All I see is some press releases from Dish, so I don't want to get too far into what they have asked other than, I think an awful a lot of people have been making every since we sort of established its leadership position claims about what they've got in HD and how they define channels. I mean some of that has defined a gamble week at the channel, some have defined a pay-per-view event as a channel, there are an awful lot of sort press releases to muddy the water.
So, I'm probably more a believer when we see it in ways that are clear. I think we got a great position in HD. I think we continue to add dimensions when we do things like our sport packages all on HD, when we have HD – when we have regional sports network...we have 24 hours ones, not just a few games a week. I think we've got great strength in that and I think strength we can continue to drive including brand strength.
And we obviously have more local (HD) and we'll be going to– we're going to be in the high 80% penetration. And so I think we've got, I think we do still have a position of real leadership both in terms of having been there first, having created that leadership position and created that brand position around and continuing to add dimensions to it. We have announced we're doing 1080 (p). I think we are very comfortable with sort of the leadership position. We have and will continue to be able to drive in this space."
DIRECTV CFO Pat Doyle on why company's income rose in the second quarter:
"Consistent with recent quarters, the ARPU (average monthly revenue per customer) growth was driven by price increases and strong growth in HD and DVR services. We now have more than 7.5 million subscribers with advanced services or 40% more than we had a year ago, and they are paying us about $100 per month. And I also point out that we added three to four times as many HD and DVR subscribers as Comcast added in the quarter."
Carey on the U.S. economy's impact on his company:
"The problem with the general economy continued to have a limited impact on us. I would not say no impact but it’s certainly limited."
Carey on DIRECTV's new Broadband-enabled Video on Demand service:
"On VOD, it’s really early days and probably we would not be coming out with specifics out there. We just launched in the last month and about the customers, it’s so small at this point. We got to get the customers hooked up to the broadband and we’re doing. As customers have it, results would be great and also the use of it, but it is small...I mean VOD sales, as a portion of the market is nowhere near. It’s sort of not something that is high in the list of, sort of what is driving in the marketplace today. HD, DVRs, those really continue to be the things that drive it. VOD matters to a segment but it’s still a pretty modest segment. And I think we’ll grow to meet that demand as it evolves, helps you get better product, but it is really something that will grow over a period of next couple of years, not next couple weeks or months.
"I think the HD piece of that still is probably, we certainly have it but it's probably small and the HD will – it's very early, the numbers in the VOD side of it from us today are not large because we just launched it. We got customers calling and asking and we're putting the appropriate equipment in a home to hook up your box to a broadband connection. And so it is really something that we'll probably – there'd be more meaningful shape and structure in that as we go forward over the next year."
Carey on reports that DIRECTV may merge with Dish Network:
"In terms of the merger with EchoStar, it really has nothing to do...but I have nothing; there's really nothing....
Carey on whether the FCC's approval of the XM-Sirius merger helps a DIRECTV-Dish Network merger:
"It's probably a minor positive, not a major positive. There are a lot of differences between the businesses, but I don't think it certainly doesn't change the world from black to white."
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Blockbuster: PS3 Sales Booming
Company chief says it will boost Blu-ray rentals.
By Swanni
Washington, D.C. (August 7, 2008) -- Blockbuster says it's now selling between 2,000 and 3,000 Play Station 3 consoles with Blu-ray players inside every week.
That's according to the Dow Jones news service.
Blockbuster recently added a PS3 display with a 42-inch Sony Bravia HDTV at 3,000 stores and the company expects to have the exhibit in all stores by the end of September.
Blockbuster CEO Jim Keyes says the PS3 sales will soon fuel an increase in both game and Blu-ray high-def disc rentals at his stores.
The video rental giant, which recently made a failed effort to buy Circuit City, says it could even sell the Bravia HDTV if it tried. (The company is testing TV sales in roughly 600 stores.)
"It's hard to resist the lure of the dramatic picture," Keyes said today, according to Dow Jones. "We've actually had customers try to buy the television."
Keyes said the Circuit City bid is encouraging CE companies to consider selling their products at Blockbuster.
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DIRECTV Adds 129,000 Subs -- Thanks to HDTV
The satcaster releases its second quarter report.
By Swanni
Washington, D.C. (August 7, 2008) -- DIRECTV today reported that it added 129,000 net new subscribers in the second quarter, compared to 128,000 a year before.
The satcaster also reported a 1.6 percent increase in second quarter net income and credited the company's expanded High-Definition lineup for both.
DIRECTV said its net income rose to $455 million, compared to $448 million a year ago while overall revenue jumped 16 percent to $4.81 billion.
The company now has 17.2 million subscribers.
The second quarter report contrasts sharply with Dish Network which just reported that it lost 25,000 net subscribers in the second quarter, although revenue rose slightly. While Dish has also expanded its high-def lineup, most observers agree that DIRECTV has done a better job of promoting its HD service.
DIRECTV also reported that its average monthly revenue per customer jumped seven percent -- against thanks to high-def and DVR packages which are more expensive.
The satcaster also reported its lowest monthly churn rate in four years.
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Could DIRECTV's Parent Buy Voom?
Liberty Media says it would be interested in Voom's corporate parent.
By Swanni
Washington, D.C. (August 6, 2008) -- Liberty Media, which has a controlling stake in DIRECTV, says it might be interested in buying the company that owns the Voom High-Definition channel programming service.
That's according to an article by The Rocky Mountain News.
Rainbow Media, which is owned by Cablevision, has several programming assets including Voom, the Sundance Channcel and AMC TV Networks.
But Cablevision said this week that it might spin off Rainbow, which could put the programming division on the block.
Liberty Media CEO Greg Maffei told the Rocky Mountain News that it would consider buying Rainbow if Cablevision decides to sell it.
"Like most opportunities in our space, if Rainbow is put on the market, we will look," Maffei told the newspaper.
If Liberty Media were to purchase Rainbow, it could give Voom new life. The 15-channel HD programming suite, which was recently dumped from Dish Network's lineup over a legal argument, is now only available in the U.S. on Cablevision.
DIRECTV, which continues to aggressively expand its high-def lineup, could add Voom to improve its HD numbers.
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Vudu Adds Adult to VOD Lineup
The high-def edition will cost $8.99 to rent.
By Swanni
Washington, D.C. (August 6, 2008) -- VUDU, the Video on Demand set-top, has added the adult AVN Media Network to its SD and HD lineup.
The AVN Media Network will deliver SD adult movie rentals for $6.99 while high-def movies will cost $8.99 to rent. The lineup will include films and related content from such adult studios as Vivid, Hustler and Wicked.
The Vudu set-top, which retails for $295, enables users to download movies over a high-speed Internet connection. The box, which can also store movies, includes both standard-def and HDTV films.
The cost of purchasing a SD adult film from AVN will be $19.99 while an HD film will be $29.99. Purchasing the film will allow the user to keep it indefinitely on his set-top.
VUDU also includes a lineup of mainstream, non-adult films, but the company could be hoping that the adult fare will jump-start the business. Like other new set-top VOD businesses, VUDU has struggled for new customers.
"To celebrate the launch, AVN Adult Channel includes free access to the 2008 AVN Adult Movie Awards in brilliant 1080p HD. The legendary 25th anniversary show, hosted by Tera Patrick and Greg Fitzsimmons, features special appearances by Artie Lange of the Howard Stern Show, Bubba the Love Sponge, Dave Navarro, Jenna Jameson, and many other celebrities," Vudu says in a press release.
Vudu's addition of adult films also could have a negative impact, though, with some parents concerned their children could accidently watch the movies. The The company says the set-top includes password-protected controls to ensure that children will not watch the adult movies.
Best Buy in May began selling Vudu in its store. The set-top retails for $299.
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Dish Network and DIRECTV Talk Merger
But it's unclear if the discussions have reached the serious stage.
By Swanni
Washington, D.C. (August 5, 2008) -- Dish Network is considering merging with rival satcaster DIRECTV, The Wall Street Journal reported today.
The newspaper reports that the companies have not discussed a formal proposal, but have had "general discussions" about the idea.
The two satcasters attempted to merge several years ago, but the FCC rejected the plan in 2002 on grounds that it would be anti-competitive.
However, in the years since, other video competition has emerged, including TV services from telco giants AT&T and Verizon and set-top Net TV services from Apple TV, Amazon, TiVo and Netflix.
WSJ reports that Dish CEO Ergen believes that federal regulators may be more receptive to a merger at this time, particularly after the agency just approved the satellite radio merger between XM and Sirius.
The two satcaster could not be reached for comment, Reuters reports.
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Dish Network's Ergen Speaks Out On HDTV
The satellite chief also says he's 'stubborn' about TiVo.
By Swanni
Washington, D.C. (August 5, 2008) -- Dish Network said yesterday that it lost 25,000 net subscribers in the second quarter, but increased revenue due to sales of high-def related products and services.
Following the release of its second quarter report, Dish Network CEO Charlie Ergen and other company executives held a conference call with Wall Street analysts to discuss the satcaster's future plans for high-def and related issues. Here's a summary of those remarks:
Dish CEO Charlie Ergen on why the satcaster lost subscribers:
"I'd say it's probably four things that have been driving it. One is economic. Obviously the effect on housing and the total economy has some effect on you when customers can't pay their bill. They either downgrade or drop off completely and watch free TV, particularly on some of your low end type customers.
Second issue would be piracy and fraud. As you know, our system has been – has been compromised and it's compromised in two ways....Third thing then is it's really competitive – is really competitive offerings in the marketplace. The biggest being probably the phone companies and FiOS and U-Verse where there are a lot of introductory offers and offers out there that – and I think they had about 300 – close to 303,000 net additions in the second quarter. So, they have taken those some from us and some customers from others. Obviously, in the high definition front, we haven't been as competitive as we would like in the second-quarter, particularly versus DirecTV.
And finally, operational efficiencies really in two ways, one is just our total overall customer service. In terms of are we giving customers a great experience and are we doing everything right? So, customers don't have to call us and we certainly have – we certainly made some progress there."
Ergen On Which TV Provider Is the HD Leader:
"Starting as of August 1st, we were at 114 HD national channels, I believe. DIRECTV talked about being at 100 channels last year. I think the latest thing I saw, they were at 95 channels in August 1st, so they talked about last year having 100 channels. They didn't meet that goal. We were actually the first company to have today I believe 114 national HD channels, including one that's in 1080p for video on demand, so that's true video on demand. So, we've made progress there although that's in the third quarter, obviously, not in the second quarter."
Ergen On Whether Dish Can Expand HD Capacity:
"We have a satellite being launched by a Canadian company in the fourth quarter of this year that we have leased all the capacity on. That should be operational by the first of next year. We then have Echo14 launching, I think, the end of next year. Then we have Echo15 in 2010. I think it's reasonable to expect that we would launch something in the neighborhood of one satellite per year, end up with 10 satellites in our fleet that are operational. And they – while they have 12 to 15 year lifetime, I think we're on a kind of a path of one a year to add capacity."
Ergen on Whether Dish Will Add More HD In 2008:
"I think as soon as the next satellite gets turned on, we have a chance to be more aggressive than we are today. We're a little bit more aggressive today, obviously, and we're doing a couple of different things. The first big thing we do, we have the only 8-All HD package. So, if you're going to buy an HDTV set and you don't want to put anything on it that is not HD, we're the only guys that have the system for you to do that, right, and it starts with less than $1 a day. So, that's pretty aggressive. But, its aggressive in a way that it's – from a pricing point of view, it's pretty aggressive from a packaging – program and packaging point of view as well. If you go to a cable company, before you can get it – you'd probably be buying $50 of products before you get your first HD channel. It's a kind of add-on tier. So, it's competitive in that market."
Ergen On 1080p PPV HD Movies
(Dish last Friday began showing PPV HD movies in what it calls 1080p high-def video -- the same resolution as Blu-ray.)
"But, we have 10 or 15 channels probably in 1080p that we'll put up... Realize that we're starting with pay per view movies, our video on demand. So, the way that works is we don't actually need – we don't need a lot of capacity for that because we actually download that in the middle of the night, that capacity to your hard drive, so it doesn't take up a full linear channel while we do that and then the video on demand movies is there, so, I Am Legend, or whatever, the first movie that we started with, that just got downloaded to everybody in the middle of the night. It takes us a couple of hours to download it and then it was done. No more capacity was needed for that movie in 1080p. So, there's not any question, and I think you probably hear the same thing from DIRECTV but the satellite industry is going to be over delivered the best quality of HD and the satellite industry going to be able deliver the most channels.
Ergen on Dish's DVR Patent Case vs. TiVo
(TiVo won its patent case in a Texas court, but there will be a September 4 hearing to assess the status ot the case.)
"At some point, I believe we'll prevail. But TiVo, we're going to have conversations with TiVo one way or the other about how we work together. And again, it's, I'm just stubborn. I know this case inside and out, I've sat through trials, I've sat through the engineering models, I've sat and have the best and the brightest explain this – and I'm just stubborn. We don't violate their intellectual property today and I want to prove that. And so, we're going to go to the September 4th hearing and see who's right.
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NetFlix Begins Testing Higher Blu-ray Prices
One report says subscribers are being charged $1-2 more per month.
By Swanni
Washington, D.C. (August 5, 2008) -- Netflix has confirmed that it has begun testing higher subscription prices for customers who rent Blu-ray high-def discs.
That's according to an article by Information Week.
Steve Swasey, a NetFlix spokesman, wouldn't say how much the online DVD rental service is charging. But the web site Engadget reports that some subscribers are saying it's between $1-2 more per month. (NetFlix's monthly subscription fees vary depending upon how many DVD and Blu-ray titles you are allowed to rent at the same time.)
"Netflix is testing prices around Blu-ray right now, and we don't have anything else to report," Swasey said, according to Information Week. "There's nothing being done across the board."
NetFlix CEO Reed Hastings hinted as early as April that the company would charge more for plans that include Blu-ray rentals.
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Comcast to Add Fox News HD
The channel will launch first in Nashville, Tennessee.
By Swanni
Washington, D.C. (August 4, 2008) -- Comcast is adding Fox News Channel HD in Nashville and several other markets, the cable operator has confirmed.
Alana Davis, a Comcast spokeswoman, says the high-def edition of the news channel will be officially launched on Comcast's system in Nashville on August 10.
However, the cable operator is expected to add it to "several markets" at a time to be determined later.
Fox launched the HD simulcast of the channel on May 1, but has found difficulty landing slots in cable and satellite lineups. DIRECTV, for instance, has yet to add the HD version of the Fox News Channel. Time Warner Cable has added the channel.
CNN, which launched a high-def simulcast last year, has been added to several cable and satellite lineups, including DIRECTV, Time Warner and Comcast.
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