By Phillip Swann (President of OnHD & has been published in numerous broadcast outlets, including CNN, Fox News, Inside Edition, The Chicago Tribune, and The Associated Press)
The satcaster DirecTV will quietly test the new service in one city or two before launching nationally. But 24 markets will get local HDTV this fall.
DIRECTV has announced that it will offer High-Definition TV feeds of local channels in 24 markets this fall. This will be the first time that DIRECTV will provide viewers with local high-def coverage.
However, I predict that the satcaster will first test the local HDTV service in one market before launching the 24 market national launch around late September or early October. At this time, I am not ready to predict which market will be tested.
The reason for the one-city test: The local HDTV signals will be delivered via a new Ka-band satellite, which was launched in April, and a new compression technology called MPEG-4. Consequently, the satellite TV service must take special care to ensure that the new satellite -- and the new technology -- is a-ok before going national. (DIRECTV currently uses MPEG-2 compression technology to deliver TV signals.)
The limited market test would not be unprecedented for DIRECTV. The satcaster tested its new Interactive TV service, called DIRECTV Active, in selected cities before launching nationally. The Interactive TV test lasted up to 30 days.
DIRECTV's local HDTV service has been eagerly awaited by high-def owners. As of now, HDTV signals of local channels are only available via cable TV -- or an off-air antenna. (DIRECTV does provide national HDTV signals of ABC, CBS, FOX and NBC in selected areas.) The satellite TV service hopes that the addition of local HD will stop new HDTV owners from signing up for cable.
DIRECTV plans to offer local HD and up to 150 other national HDTV channels -- in nearly every market by 2007. The satcaster is launching four new satellites over the next two years to deliver those signals.
Shortly before this fall's full launch of the first 24 markets, I predict that DIRECTV will begin selling new MPEG-4 dishes and receivers, which will be needed to receive the local HDTV signals. However, I am not ready to agree at this time if DIRECTV will offer deep discounts and incentives for current customers to upgrade to the MPEG-4 systems. (It is very likely, though.)
DIRECTV's 24 market roll out of local HDTV will be done in two stages. DIRECTV has announced that the first 12 markets will be: New York, Los Angeles, Chicago, Philadelphia, Boston, San Francisco, Dallas, Washington DC, Atlanta, Detroit, Houston, and Tampa Bay. In the next few weeks, I predict that DIRECTV will announce the 12 additional markets that will get local HDTV this fall.