Post by dkennedy on Aug 8, 2005 7:19:39 GMT -5
DIRECTV Offers a Free DVR
The satcaster tries to curb the growth of cable's DVR service.
By Phillip Swann, tvpredictions.com
Washington, D.C. (August 1, 2005) -- DIRECTV announced today that it's offering a free Digital Video Recorder to new and existing customers. This was predicted to happen last year by TVPredictions.com.
The DIRECTV offer, which was posted at the satcaster's web site, provides a $100 rebate on a $99 DVR, effectively making the receiver free. The offer, however, requires a 24-month commitment to a DIRECTV "Total Choice" programming package, which start at $41.99 a month. In addition, you must pay $5.99 a month for the DVR service.
In its offer, which is good until November 5, 2005, DIRECTV does not mention if the DVR service will be provided by its current DVR partner, TiVo. DIRECTV and TiVo have a marketing agreement that's not scheduled to expire until 2007. But the DIRECTV-TiVo relationship has been cast in doubt since last January when the satcaster announced that it would launch its own DVR service this year.
The new DVR service will come from NDS, which is owned by DIRECTV's parent company, News Corp. However, NDS is not expected to be ready with the new DIRECTV DVR until later this year. Consequently, the initial free DVRs will include the TiVo service, a DIRECTV spokesman confirmed on Monday.
But DIRECTV's decision to downplay TiVo's involvement at its web site could suggest that it will only use NDS in the free DVR campaign when it's available.
Rupert Murdoch, the chairman of News Corp., has hinted that DIRECTV would offer free DVRs since his company took control of the satellite TV service in 2004. Murdoch believes that a free offering is necessary to persuade reluctant consumers to try the new recording features, which includes pausing live TV and fast-forwarding past commercials at blinding speeds.
But there's another reason why DIRECTV would offer a free DVR at this time.
Cable on the March
DIRECTV launched a DVR service in 2001, two to three years before most cable operators did. The satcaster -- along with satellite rival EchoStar -- dominated the DVR market in the early years. If a consumer wanted a DVR, chances are that he got it from a satellite company. (Today, DIRECTV and EchoStar each have more than two million DVR customers.)
But a few years ago, cable TV operators from Comcast to Time Warner started aggressively rolling out new DVR services across the country. And, unlike DIRECTV, cable's DVR service did not require the purchase of the set-top. (EchoStar does have a lease option, just like cable.) Consequently, cable's DVR subscriber numbers have been climbing impressively in recent months. The DVR arguably has been turned around to become a marketing advantage for cable.
So, by announcing a free DVR offer, DIRECTV is trying to slow the growth of the cable DVR. And, before year's end, DIRECTV will announce that its DVR from NDS will include several exciting new features such as movie downloads.
The DVR war has just begun.
© TVPredictions.com
The satcaster tries to curb the growth of cable's DVR service.
By Phillip Swann, tvpredictions.com
Washington, D.C. (August 1, 2005) -- DIRECTV announced today that it's offering a free Digital Video Recorder to new and existing customers. This was predicted to happen last year by TVPredictions.com.
The DIRECTV offer, which was posted at the satcaster's web site, provides a $100 rebate on a $99 DVR, effectively making the receiver free. The offer, however, requires a 24-month commitment to a DIRECTV "Total Choice" programming package, which start at $41.99 a month. In addition, you must pay $5.99 a month for the DVR service.
In its offer, which is good until November 5, 2005, DIRECTV does not mention if the DVR service will be provided by its current DVR partner, TiVo. DIRECTV and TiVo have a marketing agreement that's not scheduled to expire until 2007. But the DIRECTV-TiVo relationship has been cast in doubt since last January when the satcaster announced that it would launch its own DVR service this year.
The new DVR service will come from NDS, which is owned by DIRECTV's parent company, News Corp. However, NDS is not expected to be ready with the new DIRECTV DVR until later this year. Consequently, the initial free DVRs will include the TiVo service, a DIRECTV spokesman confirmed on Monday.
But DIRECTV's decision to downplay TiVo's involvement at its web site could suggest that it will only use NDS in the free DVR campaign when it's available.
Rupert Murdoch, the chairman of News Corp., has hinted that DIRECTV would offer free DVRs since his company took control of the satellite TV service in 2004. Murdoch believes that a free offering is necessary to persuade reluctant consumers to try the new recording features, which includes pausing live TV and fast-forwarding past commercials at blinding speeds.
But there's another reason why DIRECTV would offer a free DVR at this time.
Cable on the March
DIRECTV launched a DVR service in 2001, two to three years before most cable operators did. The satcaster -- along with satellite rival EchoStar -- dominated the DVR market in the early years. If a consumer wanted a DVR, chances are that he got it from a satellite company. (Today, DIRECTV and EchoStar each have more than two million DVR customers.)
But a few years ago, cable TV operators from Comcast to Time Warner started aggressively rolling out new DVR services across the country. And, unlike DIRECTV, cable's DVR service did not require the purchase of the set-top. (EchoStar does have a lease option, just like cable.) Consequently, cable's DVR subscriber numbers have been climbing impressively in recent months. The DVR arguably has been turned around to become a marketing advantage for cable.
So, by announcing a free DVR offer, DIRECTV is trying to slow the growth of the cable DVR. And, before year's end, DIRECTV will announce that its DVR from NDS will include several exciting new features such as movie downloads.
The DVR war has just begun.
© TVPredictions.com