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Discussion Starter · #1 ·
This was revealed in their 2nd quarter conference call. It affects the first 12 HD markets.


They say they will transition their current 500K-600K HD Viewers to MPEG-4 boxes mostly in 2006 and into 2007 (not in 2005). Those opting for locals later this year will get MPEG-4 equipment.


Edit: Changed the wording somewhat to help clarify things.
 

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Quote:
Originally Posted by NBP
They essentially admitted that until they migrate to MPEG-4, they aren't competitive in HD.
Amazing maybe they should give us the HD package for free until they have their act together
 

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Originally Posted by michaelk
if you call and ***** they will. So pick up the phone.
Yes I know all about it and I was told the last time I called I was out of credits but in the end they gave me another 6 months for free.
 

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Quote:
Originally Posted by michaelk
that's funny/


are you now on "double secret probation"


:D
Something like that I have had to go higher in the food chain to get what I want and now I just call the office of the president. I spoke with them the other day and I was telling the woman how pissed off people were over their stupid SF package and how much business it cost them and she said they are very much aware of it and let out a big sigh I thought it was funny.
 

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If that's true, for me here in the SF Bay Area it means that I'll get my locals in November plus any new national HD channels and all will work with my HD-Tivo until they get around to transitioning to MPEG-4 in 2006 or so. That's great news! Once they have the bandwidth to do HD locals, I suspect there will be some new national channels, and the possibility of increasing the bandwidth for existing ones.


Unless there's more to the news than Rich posted, how does someone come to the conclusion that this means they won't be competitive in HD?
 

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Quote:
Originally Posted by cwilson
If that's true, for me here in the SF Bay Area it means that I'll get my locals in November plus any new national HD channels and all will work with my HD-Tivo until they get around to transitioning to MPEG-4 in 2006 or so. That's great news! Once they have the bandwidth to do HD locals, I suspect there will be some new national channels, and the possibility of increasing the bandwidth for existing ones.


Unless there's more to the news than Rich posted, how does someone come to the conclusion that this means they won't be competitive in HD?
I thought all HD LILs will be MPEG4? Where will they find bandwidth to fit the 70 or so new HD channels?


They are not competitive in HD with cable without HD LILs, I'd say one more, without low cost HDDVRs. The conclusion was drawn from the numbers. D* started HD services many years ago, rolled out HD Tivo long time ago, it now has 500,000 to 600,000 HD subs; Comcast started HD service widely only a year or two ago, had HDDVRs just widely available early this year, Comcast alone now has over 1,500,000 HD subs. If you add HD subs from other cable companies, the conclusion was a no brainer.
 

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cwilson,


The aforementioned 12 markets will be receiving HD locals but only in MPEG-4, thus it won't work with your current HD-TiVo. And as for them not being competitive in HD, that wasn't mine or anybody else's conclusion, that was the Company's statement - they currently are not competitive, they will become competitive starting in November. The reason being is that they charge $700 for an HD-TiVo while cable companies give them for free (plus monthly rental). They acknowledged that they are probably losing HD subscribers because of this but with the impending technology change, it would be even more expensive to give all these customers MPEG-2 boxes and then have to switch them out to MPEG-4. They are willing to sacrifice the revenue to avoid the enormous capex involved to transition subs. This problem goes away in November. I also heard them say that they will go to a model of renting boxes, a la cable, rather than sell them.
 

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A direct question was asked if D* thought it had lost HD subs to cable due to the high cost of the HR10-250. The answer was yes, and that until MPEG4 is available D*'s new HD sub cost (SAC) would be VERY high. They have the cost of the current MPEG2 equipment, then the cost of the MPEG4 upgrade.


So until Nov. they know they are not competitive on new HD subs. They did say that the number of subs lost was not that significant, and hinted that while HD has a lot of media buzz, the consumer demand was not there yet. That is not true for us AVS folks, but may be true for the average joe.
 

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Quote:
Originally Posted by NBP
They essentially admitted that until they migrate to MPEG-4, they aren't competitive in HD.
Well, step one is admitting you have a problem. :D
 

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Discussion Starter · #15 ·
Quote:
If that's true, for me here in the SF Bay Area it means that I'll get my locals in November plus any new national HD channels and all will work with my HD-Tivo until they get around to transitioning to MPEG-4 in 2006 or so.
That's not a correct interpretation. As NBP said all new locals will be in MPEG-4 so in order to get locals in HD you will need new hardware and the HD Tivo won't be able to receive them.
 

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Quote:
Originally Posted by kidh
Well, step one is admitting you have a problem. :D
Indeed. Just let's not hold our breath for Step 9 - apologizing to those you've hurt. :(
 

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I jumped in 20 minutes after the call started. I did not hear them discuss what the offerings were going to be for HD outside of the HD locals.
 

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I don't believe there was any mention of HD channels outside of the locals. By the way, when asked about whether they were confident about an early November roll-out, they hedged a little and suggested that it was all still a very fluid process and as they get closer to the launch, they'd be able to pinpoint a date. So if you mark your calendars, make sure you use pencil! They acknowledged that it was critical for them to have it done in time for the holidays.
 

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November should be a good month... Xbox360 and (hopefully) HD locals on D*TV... yes.. November 2005 will be a good month for my HDTV!
 
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