DIRECTV Wants Subs to Connect to the Net By Swanni
Washington, D.C. (December 8, 2010) -- DIRECTV wants to connect 40 percent of its subscribers' homes to the Internet by 2013 as a means to boost Video on Demand revenue.
That's according to an article by Multichannel News.
The publication reports that DIRECTV CFO Patrick Doyle yesterday said his company's monthly VOD revenue trails cable by roughly $2-3 per subscriber. The biggest reason: Most cable subscribers have set-tops that enable them to order Video On Demand without accessing the Internet.
DIRECTV's new VOD service, which has hundreds of titles, requires a subscriber to connect his set-top to a high-speed Internet service, something few DIRECTV subscribers have done. (The satcaster has a Pay Per View service that offers movies without Internet access, but the lineup is limited to around 50 titles.)
Doyle said DIRECTV will launch a program called 'Connected Home' that will connect the subscriber's set-top to the Internet for free if the subscriber agrees to upgrade to an HD DVR service or get a 'Whole Home' DVR. (The subscriber will have to subscribe to the high-speed Internet service on his own; DIRECTV does not offer an Internet plan.)
The DIRECTV CFO did not say how many subscribers are now connected, but the goal is to have roughly 40 percent by 2013. He added that it will cost DIRECTV between $65-70 to connect a subscriber to the Net, but the satcaster believes the investment will be recouped in added VOD orders.
Multichannel News did not report if Doyle said when the free installations would begin.