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DirecTV finally offering video-on-demand

Posted Mar 13 2008, 03:18 PM by Kim Peterson
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DirecTV is finally going to offer a video-on-demand service. About time, too. Comcast and other companies are light-years ahead in this area, and on-demand is becoming a required feature for some consumers these days.

It's taken DirecTV this long because, as a satellite provider, it broadcasts a one-way signal. The technology doesn't allow for the two-way conversation that an interactive service like on-demand uses. DirecTV is going to work around this using broadband connections and digital video recorder (DVR) technology, according to the WSJ.

DirecTV shares are up nearly 1% on the news today to $25.21. The project is expected to launch in the second quarter.

The way it's going to work is that DirecTV will automatially send some movies to customers' DVRs for ordering. Television programs and other movies will be streamed over the Internet to the customers' set-top boxes. So it's not exactly "true" on-demand, but it'll do.

What if you don't want the movies DirecTV chooses taking up space on your DVR? DirecTV says that most of its 3,000 on-demand titles will be streamed online, and the videos that do get to your DVR will sit in space that isn't available to customers anyway. (Then what is that space there for, I wonder?)

Here's what people are saying about today's news:

Broadband Reports: "As we've stated repeatedly, this particular launch will be one to watch -- given you've got a satellite provider suddenly using a competitor's bandwidth to deliver high-definition content -- something that speaks strongly to the debate over a neutral 'Net."

Paid Content: "Think back to Cablevision’s maligned effort to allow viewers to use remote servers as a DVR, still being fought over in court. The main difference: it’s all stored on the user’s DVR, not a remote server. Still, some of it is copied onto the DVRs by the provider without user choice, one of the issues used to rule against Cablevision in U.S. District Court last year."

Silicon Alley Insider: "Will it dramatically boost revenues? Unlikely. Cable companies have hoped for years that on-demand programming would juice sales, but it's not happening. " 

Shelly Palmer: "It remains to be seen if DirecTV’s system can stream high-quality films without buffering delays, stuttering video and dropped connections. Stay tuned - this is a high-profile experiment in content delivery."

Blogging Stocks: "Three well-funded competitors trying to get market share usually leads to a price war. Getting "on demand" TV services is probably about to get much cheaper." 

Disclosures: I don't own shares of any companies mentioned in this post. And while Microsoft owns this blog, Microsoft does not control, censor or otherwise have any editorial influence over what I write. 

Comments

 

I would be much happier if Direct TV would allow us to choose our own programming.

Out of the 150 channels I pay for, I only have interest in about 70. There is

simply no need to pay $57 a month.

I do not think it would hurt their business, either, if they let us choose what we want to watch.

There is a reason DIRECTV finishes in the botton 10 for customer service.  I would not go back to them if the service was free.

I love green eggs and ham.

For those who are not aware DirecTV has been testing this capability for quite some time.  They have a good solution, but to date it will only be offered on their HD DVRs.  In my opinoin On Demand has been overhyped with a small but loyal following.  I have used it on Comcast and DirecTV with a mixed feeling.  Quite frankly there is just too much programming.  It's difficult to find exactly what you want with so many choices.

The question about the place where the movies are stored is a non-issue.  Since their inception, DirecTV has always allocated some portion of disk space on their DVRs for non-customer use.  This space has primarily been used for storing what DirecTV calls Showcases, and this is just another extension of its use.  Doubt if it will spur a court battle since it's been there since 2005 and no one has said a thing.

For those who are contemplating using this service. Beware, as you will be tying yourself to another 2 year contract. whether you like it or not. And if you don't like the service, it will cost you a great amount of money to get out of it. Plus you have to put up with DTV's increasingly poor customer service. And, how much extra money is DTV going to soak you for this service. I recently left DTV after 10 years for FIOS. Couldn't be happier. More channels and costs less than DTV.

I have direct tv now and the only thing that I am disappointed with, is the fact that they don't offer the same amount of channels as some cable companies.  I like my music videos, and it is sad to say that direct tv only offers four or five, while some cable companies offer 15- 17 channels.  that would be okay, if direct tv didn't charge so much for certain packages to begin with.

You have to have the international channels as Dish net work with all the American channels, the only you looks good!!!!!!!!!!!!!

Good Luck

Perhaps a little off point, but I want to make the point that in 1995, when I first insalled Direct TV at our home on the Southern Oregon coast, the cable companies were still refusing to provide digital signals into the home, even thought they had the technical capability to do so. At the time, their analog video singals were almost unwatchable. Then, the difference between a digital signal and an analog one was far greater than the current difference between SD digital video and High Definition Video.

Direct TV forced cable companies to offer a digital signal. We should thank them for that. Rather than VOD, they should concentrate on doing what they have always done so well, providing digital video signals from satellite, but improving HD selections, signal quality (apparently not as good as FIOS) and content.

The cable TV industry has consistenly resisted innovation and, for most of its history, provided signals that were far inferior to whatever the technology of the time was capable of.

Ron Sellner

Loyal but pushy Direct TV suscriber

Get Dishnetwork.

Rob Gibbons wrote "What about the customer who wants On Demand programing but doesn't have the DVR to accept the movies? Offering something just for the sake of saying you offer it doesn't necessarily mean it's going to be quality. I have my reservations about this one. Nice try Direct TV."

DirecTV already offers DVR as a standard last I checked, so no need to worry about that as a new subscriber, if you are still using your old system, well nothing to do but upgrade.

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