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DIRECTV HD Channel Anticipation (Official Q3 2010 Thread)

Discussion in 'DIRECTV Programming' started by Stuart Sweet, Jun 24, 2010.

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  1. gregjones

    gregjones Hall Of Fame

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    In many areas, a trip to the theater for a family of four is well over $50. I can see where some folks would see it as a value not to have to go out and sit through a movie while a child (who should not be out at a 9 PM movie) cries or a bunch of teenagers make too much noise.

    I have no problem scaring teenagers into silence, but some people are less "outgoing."
     
  2. slimoli

    slimoli Hall Of Fame

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    That's not the point. When the investment was justified it was certainly related to the use of the transponders. If they are not using them it's for a good reason but you can bet there is/will be pressure to get the highest possible return to the investment. Leaving most transponders empty for a long time is not an option , although probably few of them will remain empty for future channels or backup.

    If you have a car company with 80 cars you don't leave 50 of them parked on the garage to save fuel, do you ? You bought 80 cars because your business is big enough to justify it, or you are a bad businessperson.
     
  3. gregjones

    gregjones Hall Of Fame

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    1) Completely subjective. There are a number of ways in which adding a channel could cost money. If they feel people are not leaving over what they don't have or that people are not failing to subscribe because of missing channels, they could easily call the expense of turning up new HD unjustified at the current time.

    I don't like that answer, but it doesn't make it any less true.
     
  4. slimoli

    slimoli Hall Of Fame

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    Absolutely, agree 100%. I'm not suggesting they should do anything to fill the transponders, just saying they are actively negociating to improve the service and get more customers or having a reason to rise prices.
     
  5. gregjones

    gregjones Hall Of Fame

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    I disagree. Most companies work from the current set of facts. Past rationale (or "how we got here") is a distraction and a path to lose money. Decisions in productive profitable companies are based on the best allocation of current resources in an effort to maximize profit and minimize risk. Anything else is bad policy.

    PS Minimizing risk does entail maintaining a level of customer satisfaction.
     
  6. hidef2010

    hidef2010 AllStar

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    Thanks Paulman182, I realize that D* just passes on to the customer what is sent to them from the channel provide eg - HBO, Showtime, etc. I just wanted to find out from people here, who have more D* viewing time than I do, what the general concessus is on this issue.

    Thanks
    Hidef2010
     
  7. gregjones

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    If you currently have use for only 50 of them, you rotate the usage of the 80 cars (50 at any given time) to keep them maintained. Look at large restaurants. Many have sections that they open and close depending on demand during a specific time. This is especially true in resort areas where the demand changes seasonally. You justify the capital expense of building the capacity separately from the day-to-day decision to use the capacity based on costs at that time.
     
  8. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    While in theory you may be right....in the real world....that's not how things generally play out....which is where we disagree.

    In this kind of tight economy...its all about Return on Investment.....and every company I engage with (plus my own Fortune 500 employer) moves to the beat of that drum.

    So now BACK TO TOPIC....

    I anticipate we'll continue to see some new HD channels here and some new HD channels there throughout the next few months as carriage agreements get finalized. The bandwidth is in place to launch quickly once that business portion is consummated.
     
  9. gregjones

    gregjones Hall Of Fame

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    And working for a company that's been profitable each quarter throughout the current recession, we do not. You build capacity to have options. The option not to use part of the capacity is always one of the options.
     
  10. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    While options are good in the overall plan....we're quite profitable here as well using ROI as the roadmap.

    :backtotop
     
  11. gregjones

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    ROI would lead DIRECTV to saturate the bandwidth with PPV. What ROI could be achieved specifically by adding AMC HD or TCM HD? In hard dollars, what would be the upside expressed in terms of package upgrades, new subscribers or loss reduction (fewer subscribers cancelling)?

    Has it occurred to anyone that the slowing of HD additions roughly coincides with the "HD Free for Life" offer? That would seem to have a fairly large impact on the package upgrade profit potential.
     
  12. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    Not really....ROI with too much PPV diminishes ROI based on the excess in offering numbers after a point - diminishing returns once you get too many PPV channels.

    It's all about a balance of HD channels...something for everyone....to grow the overall subscriber population, while maintaining monthly revenue. That model has worked now for many years, and is clearly their plan going forward as well.
     
  13. gregjones

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    But that $10 per subscriber is a fairly big shift in the way they pay for HD infrastructure. We still have to answer the question. How much would any one or a few channels impact subscriber growth? Does it matter which one or is it just about numbers? It seems that during the 2007-2008 timeframe numbers where the great majority of the consideration. Is there enough subscriber devotion for the remaining missing channels to register in terms of subscriber numbers?
     
  14. slimoli

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    Good point. You are probably right here but doesn't go against my own point when I say I firmly believe Directv is negociating very hard to increase the HD leadership not only to keep existing customers but also to attract new customers .

    A good CEO would sell the cars not being used, never keeping them in the garage. The restaurant is more difficult because you can't sell it by pieces. In the case of a satellite, just use it !
     
  15. slimoli

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    Not an easy question, for sure. Being the leader is very important in this business. People move and when they do they have to make the decision to stay or change the provider. Everybody is buying HD TVs and the idea of going with the highest number/quality of HD channels can be very appealing.
    CEOs must look to the future and the trends.

    Although I am enjoying the debate, I suggest we go back to topic before the mods jump in. :)
     
  16. hidef2010

    hidef2010 AllStar

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    HELP please, I am on line now ordering a PPV movie via the internet, I want it to record so I hit the record button orange button on the orde page, then I instantly got a message from D* via e-mail about the "DVR Scheduler confirmation"..... Have I actually purchased this movie simply by hitting the RECORD button? Shouldn't the "ORDER NOW" button be the one that confirms the actual order.

    PLEASE HELP
    Hidef2010
     
  17. DaveC27

    DaveC27 Godfather

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    I guess they must monitor peoples reasons for leaving and if they suddenly saw a big in people giving "lack of BBCA HD" as a reason to go to Dish then they'd suddenly be more interested in getting on board too.

    Though I suspect that the majority of subscribers seldom venture outside of the core 5 channels (if they do probably only to the HBO's & ESPN's) and that few consider the lack of BBCA, AMC and E! to be worthwhile swapping providers for and so there's little urgency for DTV to take on a contract that they feel they can do a better deal for
     
  18. DaveC27

    DaveC27 Godfather

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    Nope you only pay when you actually watch it
     
  19. hidef2010

    hidef2010 AllStar

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    Thanks Dave, I gather the movie is just there for me to access it from my "PLAYLIST" if I choose to watch it! I assume D* sends the movie to my house via the satellite because I do not have my PVR hooked up to the internet or phone line.

    Thanks again for the help!
     
  20. Alan Gordon

    Alan Gordon Chancellor

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    Those were my thoughts as well... :D

    As much as I like to stress the fact that D12 does not give DirecTV more bandwidth than they need, and in fact explicitly state that DirecTV will have to cherry-pick some channels due to that fact...

    ... it's also equally important to stress the fact that even if DirecTV were to use 25-30 of their available spaces on the HD channels available, (depending on the channels they offer) DirecTV can please the majority of us... or at least get closer to contentment. :)

    ~Alan
     
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