DIRECTV HD Update

I called DIRECTV this week to see about getting their HD service set up at my house and gleaned a few interesting nuggets from the conversation. According to the rep I spoke with:

• They've cut the price of the standard HD receiver from $299 to $199.
• They've cut the price of the HD TiVo receiver from $599 to $499 after $100 mail-in rebate.
• Most major markets (including San Diego, where we live) will be able to receive HD local channels via the satellite by the end of the year. She also said that customers with the current generation of HD receiver will be able to trade them in for an upgraded MPEG-4 capable receiver at no additional charge (other than shipping cost) after the HD locals are available.
• All NFL Sunday Ticket games that originally air in HD on CBS and FOX are available in HD on DIRECTV.

I still think that DIRECTV should offer a lease option on the equipment, which I believe puts them at a serious disadvantage compared to DISH Network and the cable companies. The $100 price cut is nice, but $199 is still a decent amount of money to fork over for something you can get elsewhere for $5 a month.

The HD local channels coming online later this year, which I've written about previously, should help offset a signficant advantage currently enjoyed by cable. While an over-the-air antenna may bring in some local HD channels for satellite customers, it's just too hit-and-miss to amount to a good long-term strategy for either DIRECTV or DISH. There will be -- and likely already is -- serious pressure on the latter to develop a way to respond in kind if it hopes to remain competitive with its rivals.