Commentary
AT&T's U-Verse Gets It Right On HD & 3D
By Swanni

Washington, D.C. (August 4, 2011) -- Too often in business, and perhaps in the TV business more than most, companies try to sell new products that people don't actually want.

New shows. New TVs. New cars. New clothes. New food items. You name it. CEOs and marketing executives believe they are so clever that they can trick consumers into buying anything. Even after consumers have tried the new products and found them to be undesirable.

This is a prevailing wisdom in business, which is why today I am here to praise AT&T's U-Verse TV service.

The telco this week announced that it was dropping ESPN's new 3D channel and adding five new HD channels. Considering that fewer than two million consumers have purchased 3D TVs since their unofficial debut 18 months ago -- and considering that more than 50 million U.S. homes own High-Definition TVs -- AT&T's decision would seem to be based on sound logic, right?

Answer: Duh. Although AT&T charged $10 a month for ESPN 3D (unlike DIRECTV and Comcast which offers it for free), the telco concluded that people were just not interested in it. So, why bother to offer it at all?

But you would be amazed at how some of its rivals have a different view. DIRECTV, for instance, is  investing significant resources to add and promote new 3D channels while simultaneously ignoring their subscribers' calls for more basic cable channels in high-def. Popular channels such as AMC, Turner Classic Movies, BBC America, E! Entertainment, National Geographic Wild and many others are still only available in standard-def on DIRECTV.

Of course, this is the very definition of corporate arrogance. DIRECTV is giving subscribers what they want to give them rather than giving them what they say they want.

But AT&T is acting on a different principle, as clearly stated in its press release announcing the dropping of ESPN 3D:

"We're always listening to customers and working to make sure we're delivering the channels they want, while keeping costs down,"

Always listening to customers.

If only every TV provider -- and every U.S. business -- acted on that principle.

Kudos to AT&T.

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