Telcos Battle For HD Channel Status

Entrée Beyonce. As the PR battle to be known as the leader in HD offerings escalates, DirecTV has launched a new campaign featuring the mega-star.

The satellite provider seems to have started an arms race. Cable, satellite and telco TV providers are now fiercely competing in an image battle to be known as the service with the most high-definition channels.

DirecTV has been promising 100 channels by the end of the year--a point highlighted by Beyonce in the new spots.

But recently, Verizon, which operates telco TV service FiOS, has struck back--albeit with a press release, not an international superstar. The company promises 150 channels in the pristine format by the end of 2008 and 60 by next spring.

Not to be outdone, Cablevision, which is facing increased competition from Verizon, recently said it's already up to 42--a far less attention-grabbing number than 100 or 150--but 12 more than Verizon has currently. (Comcast has also challenged DirecTV's would-be leadership.)

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The number of HD-enabled sets is proliferating, and consumers who watch in HD often commit to never return to standard-definition channels. Sony chief Howard Stringer memorably quipped that some who watch HD say they'll watch grass grow in the format. Service providers believe they can gain a leg up with the most impressive channel menu.

The Beyonce campaign started this past weekend, carrying forth the DirecTV pitch about the quality and quantity of its high-definition lineup. With its considerable price tag--namely for the talent--DirecTV is offering another sign of how critical perceived HD leadership is to its business going forward. The new push follows another expensive one that ran during the World Series and featured a blimp with a TV screen shown on Fox.

Looking to help lure customers from cable operators in the ads, Beyonce says: "Let me upgrade you to the best channels in HD...only on DirecTV." The campaign has 15- and 30-second versions.

Verizon is only in 717,000 homes so far, although it is growing at a notable clip. Still, it's far behind Cablevision in homes, and trails DirecTV by more than 15 million.

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