DIRECTV's Eric Shanks On HDTV

The TV Predictions Interview
DIRECTV's Eric Shanks On HDTV
The satcaster's executive VP says more national HD channels are coming in 2007.
By Phillip Swann

Washington, D.C. (September 14, 2006) -- DIRECTV was once the leader in providing national High-Definition TV channels. Many early high-def owners subscribed to the satellite TV service to watch such popular HD networks as HDNet, Discovery HD Theater, HBO HD and ESPN HD.

However, in the last year or so, the satcaster has fallen far behind rival EchoStar (and several cable TV systems) in the total number of national HD channels. EchoStar's Dish Network now has 30 national high-def channels while DIRECTV carries around 10.

In 2006, DIRECTV has instead focused on rolling out HD feeds of local channels in dozens of markets across the country. While subscribers are happy to get local HD, many still clamor for more national high-def programming, such as National Geographic HD, MHD (MTV Networks' high-def music channel) and Starz HD.

DIRECTV's Eric Shanks.

Eric Shanks, DIRECTV's executive vice president for entertainment, this week agreed to an interview on DIRECTV's plans for both national and local HDTV. In the interview, Shanks says DIRECTV subscribers might not see more national HD until next year, and he strongly encourages cable channels to convert to HD as quickly as possible.

Here's part one of our interview with Eric Shanks. A link to part two is at the bottom of this article.

TV Predictions: DIRECTV is aggressively rolling local HD across the country. But when will we see more national HD channels from DIRECTV? As you know, EchoStar now has 30 national high-def channels.

Eric Shanks: If a butcher will sell you 300 pounds of beef for two dollars, you immediately think there is something wrong with the beef.   But it's amazing to me that people are totally fine taking a similar deal for their HD television experience.

Just saying that you have "X" number of HD channels doesn't do any good for your customer. We are actively rolling out local HD markets, which is by far the bulk of viewing for our customers. We are currently serving 39 markets with local HD and will be in 68 by the end of the year.

Next year  we will have the capacity to rollout more than 1,500 local channels and more than 150 national HD channels. We will add the most popular HD channels first, when they are available. And that brings up a good point. Take a look at what's available from the major channels like Viacom, Disney, Time Warner and NewsCorp. There's not much available. But by the middle of next year, they will have made the investment in HD and there will be a lot of product available.

We also broadcast the games from 16 regional sports networks in HD.  And on Sundays right now for (the) NFL Sunday Ticket, we carry 18 channels of HD -- more then 110 NFL games in HD, plus your local HD networks and the Regional Sports Networks. Nobody has more NFL HD than DIRECTV.

TVP: Getting real specific, is there a launch date for the next DIRECTV national HD channel? (The name would be nice, too, of course. But if not, give us the launch date.)

ES: Our latest national launch was TNT HD, so we have pretty much covered all the major HD product out there. As I mentioned, our real focus is on getting the most popular HD content to our customers, so that has led us to the aggressive rollout of local HD like ABC, CBS, NBC and FOX and the regional sports networks. The next national HD channel won't be just one; it will be a major launch of as many quality channels as are available. That will happen in the second quarter next year, when we'll have the capacity to launch more than 150 national channels.
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"If (a high-def viewer's) favorite team is in HD, there is a better chance it is on DIRECTV."
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TVP: Considering EchoStar's national high-def lineup, why should a DIRECTV HDTV owner stay with DIRECTV at this point (as opposed to signing with EchoStar or cable)?

ES: First, they should ask themselves if they prefer to watch their favorite network shows in HD, like Desperate Housewives (ABC) or American Idol (Fox). If they do, then they should go with DIRECTV because there is a better chance of getting those shows from DIRECTV. (Editor's Note: EchoStar is launching local HD, but trails DIRECTV in the number of cities where it's offered.)

Next they should take a look at the most popular sports programming like the NFL and Major League Baseball and the local regional sports networks. If their favorite team is in HD, there is a better chance it is on DIRECTV.

If they have a major craving for watching channels like Equator HD, Rave HD or Rush HD (available on EchoStar) and they base their decision on channels like that, they should look somewhere else. However, if you want high quality HD channels with the most popular HD programming, then you should choose DIRECTV. And next year, we will leapfrog the industry with our ability to deliver more than 1,500 local HD channels and more than 150 national HD channels.

TVP: DIRECTV this year dropped a FCC complaint against INHD regarding what the company believed was unfair programming fees. Does this mean that we will see INHD added this year? If not, next year? (INHD is a high-def network available on most cable TV systems.)

ES: Basically the complaint was filed because of the principle of unfair pricing. We weren't being offered the same content at the same price as our competitors. We dropped the complaint when that got settled.

Now comes the question of programming. At the INHD website the top two things they are promoting are Major League Baseball games, which we already carry and more, and a show called Beer Nutz. So I am not sure we are going to spend our customer's money on a show called Beer Nutz just because it is in HD. And I am a big fan of beer.

But, we are talking to them about their programming and carriage of their channel. If we can strike a deal, you may see them as one of the national HD channels during our next rollout.

TVP: Does DIRECTV's ownership of CD USA eliminate the possibility that it will carry MHD (MTV Networks' HD channel) anytime soon? (CD USA is a music channel broadcast exclusively in high-def and non-HD on DIRECTV.)

ES: Original DIRECTV programming like CD USA doesn't have any effect on programming from any of our programming partners. So we are definitely interested in carrying any HD programming that MTV will produce. As you know MHD is a compilation of MTV Networks' programming. They don't currently have a full time HD feed of any of their single channels.

Click Shanks for part two of our interview with DIRECTV's Eric Shanks.

Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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