Thursday, November 08, 2007

HDNet Suing DIRECTV Over High-Def Tier

Mark Cuban's HDNet has filed a lawsuit against DIRECTV over the satcaster's plan to move HDNet and HDNet Movies to an optional $4.99 HD tier next month. The tier, which is currently free on a trial basis, consists entirely of specialty HD channels that aren't simulcasts of other SD channels and also includes MGM HD and Smithsonian HD. You can read more details about the suit, including comments from both sides, at Multichannel News.

By my count this is the 8,371st lawsuit filed against DIRECTV this year, although I may be off by one or two. Just kidding, but it does seem like pretty much everyone in the industry is taking aim at the company. I can see HDNet's point here -- I've always been against high-def tiers because plenty of consumers aren't even aware they exist and cable/satellite sales reps often do a poor job of communicating the need to add them separately in addition to the free ones you get with the HD receiver.

I also see DIRECTV's point though, which is that without a corresponding linear SD channel, DIRECTV has no additional revenue source by which to pay HDNet, MGM, Smithsonian et al their monthly carriage fees. Having an HD tier enables customers who want these specialty channels to pay for them separately, while those who don't, don't.

That said, DIRECTV already charges a $9.99 HD access fee. Is it really necessary for them to charge an extra five bucks for HDNet and the handful of HD-only channels? I'm not so sure...let me know what you think.

No comments: