• by David Goetzl  @dgoetzl, January 3, 2008

DirecTV's extensive efforts plugging the launch of 100 HD channels by Jan. 1 look to be a textbook example of a marketing push that worked --even as the promises it made failed to materialize.

The satellite operator created a stir a year ago when it declared 2007 the "Year of HD," saying it would offer 100 national high-definition channels by New Year's 2008. But by Tuesday morning, it had only 89 online--a result the company attributes to programmers failing to provide HD streams when expected.

Although DirecTV didn't reach the promised century mark, its pricey campaigns backing the would-be 100 channels (including a blimp that flew over the World Series and a slew of national spots with celebrities) appear to have established it as the trailblazer in HD programming among consumers. Those who consider the service now, but encounter only the 89 channels, are unlikely to be deterred by any false promise.

The 89-channel lineup--from broadcast networks to leading cable channels to the Tennis Channel and NHL Network--is still an industry-leading figure by a long shot. (DirecTV says it will be at 100 "fairly soon.")

"They kept saying 100, and that had a lasting impression on the marketplace," said Phil Swann of TVPredictions.com, who monitors HD developments. "There's no question." A survey of consumers today would likely show that most believe DirecTV has the 100 channels, he added.

"It had a huge impact on the marketplace," said DirecTV's Robert Mercer of the overall marketing effort, for which agency Deutsch created the spots. One ad early in 2007 featuring "Back to the Future" star Christopher Lloyd went further, saying "for a future of 150 HD channels, get DirecTV." (The ad was challenged by a cable competitor.)

As the 100-channel figure continued to be promoted widely, DirecTV indicated its efforts were working, with new customers signing up for DirecTV HD and current ones upgrading to the service. Both had a material impact on the bottom line. For the third quarter, the company said it added a record 600,000 new customers with HD and/or DVR services, although it did not break out the sheer HD number. HD service costs a minimum of an extra $9.99 a month, and can be more depending on the package and number of channels.

While competing cable and telco TV operators can gain a leg up by offering attractive triple-play bundles of TV, phone and broadband, DirecTV sought an advantage by branding itself as a groundbreaker in HD. It was a move rooted in the belief that consumers will increasingly buy HD-capable TVs and sign up to receive the more pristine channels. Then, once they sample HD programming, they'll only hunger for more. (Nielsen says 11.3% of U.S. homes receive HD channels, a figure some believe is low.)

In August, DirecTV CEO Chase Carey said the goal was to build to the 100 channels "that we think will define us in a unique way competitively in the marketplace." But even as Carey reaffirmed that "we'll get to the 100 channels that we talked about," DirecTV had several months before it looked to temper that pledge. It began using phrases like "on schedule" and "up to 100."

And by November, Carey moved in the same direction, with a statement of "close to" the 100 mark.

DirecTV's Mercer wrote in an e-mail that the company fell 11 short of its 100-channels-by-Jan. 1 pledge, as "some [programmers] have not launched their HD services as we had expected, which accounts for the slight difference. Regardless, we continue to offer significantly more quality national HD channels than any other television provider."

Mercer said DirecTV was unwilling to rush to 100 if it meant offering unappealing options. "We weren't going to throw up just anything to get to the century mark," he said.

Still, while TVPredictions.com's Swann said the 100-channel campaign was successful in delivering a message, the failure to deliver on the promise could provide fodder for a competitor to mount a counterattack. "I could see some cable operators saying things like, 'DirecTV said they would have 100 channels and they didn't'--they leave themselves open to that kind of weapon," he warned.

One such competitor could be telco TV provider Verizon, which itself has placed an impressive HD promise on the table for this year: 150 channels by Jan. 1, 2009. But a company representative said there are no plans to do so.

Last year, Comcast took exception to DirecTV's HD claims, and ran ads claiming it offers more HD feeds than the satellite operator. A company representative said yesterday there are no plans for a campaign targeting the failed 100 channels.