I used on demand to download 2 episodes of Magic City, one of which also recorded from the satellite. Both episodes that came from On Demand were seriously, noticeably over-compressed. This was particularly noticeable in scenes that panned so that the whole screen had to be updated. In those scenes, the picture nearly broke up and was redrawn in slices, kind of like banding you might see on a bad inkjet printer. Nothing like this was evident in the same episode recorded from the satellite. I don't know who was responsible for compression - the content provider (Starz in the case) or DirecTV. But I found the over-compression very distracting. If all on-demand programming is compressed this way, I won't use it. This is disappointing because there's really no good reason on-demand programming needs to be compressed beyond what is beamed from the satellite. I understand that cranking up compression will reduce file sizes, save bandwidth, and allow programs to download faster. But if the result is significant loss of video quality and compression artifacts that are distracting, I'd much prefer to wait a bit longer for full quality video.