In an especially heavy blow to telcos looking to quickly deploy compelling content through their fledgling IPTV services, satellite video provider DIRECTV Inc. announced at the Consumer Electronics Show plans to launch 100 high-definition channels this year.
With consumers still in a sustained post-holiday buying bender when it comes to HD and HD-capable big-screen TVs, HD programming has been high on consumers’ must-have lists for the New Year.
By comparison, AT&T Inc.’s U-verse service bundle, which includes IPTV, had only 25 HD channels at the end of 2006. While the sheer volume of HD channels carried is unlikely to serve as a key differentiator in the long run, the vivid content is mesmerizing viewers today.
HDTV sales have increased 52 percent in unit volume and 39 percent in dollar volume from January through September of 2006 compared to the same time period in 2005, according to the NPD Group Inc. of Port Washington, N.Y. Sales of HDTVs during the 2005 holiday season (November and December) topped $2.2 billion with more than 1.4 million units sold and further growth was expected this holiday season.
Affordability is helping to boost HDTV sales. NPD says the average price of an HDTV set is down more than 8 percent year-to-date (January through September) compared to the previous year. Prices for LCD and plasma TVs dropped significantly from the 2004 holiday season to the 2005 holiday season with 35 percent and 41 percent declines, respectively.
DIRECTV also announced that it currently has signed agreements, or agreements in principle, with more than 70 major networks including A&E, MTV, USA Network, FX, TBS and the NFL Network.
Given the timing in the sports world, landing the NFL Network is likely to attract consumers as a dispute between its owner and several large cable operators resulted in fan frustrating blackouts of live game telecasts.
DIRECTV will also extend its leadership in HD sports programming by offering hundreds of games and other HD programming available from regional sports networks including YES Network, Comcast Sports Net, New England Sports Network and FOX Sports.
To satisfy the insatiable appetite for a greater number of movies in HD, DIRECTV will offer an expanded lineup of HD programming available from all premium movie channels.
"This is DIRECTV’s break-out year for HD," said Chase Carey, the provider’s president and CEO. "The launch of our two new satellites will complete the largest capacity expansion in DIRECTV history.” He added that 40 million homes are projected to have HD-capable TVs this year.
With the launch of DIRECTV 10 and DIRECTV 11 satellites in 2007, DIRECTV said it will have the ability to deliver more than 1,500 local HD and digital channels and 150 national HD channels, in addition to new advanced programming services for customers.
DIRECTV Inc. www.directv.com
