DirecTV HD Wins-HDNet Loses

DirecTV and HDNet have reached an agreement regarding the distribution of the company’s content. The dispute was set to continue playing out in a Dallas courtroom today, as HDNet was seeking to head off DirecTV’s plan to move the content to a new tier of HD-only channels called the HD Extra Pack.

News of the settlement broke from HDNet co-founder Mark Cuban in an e-mail yesterday. HDNet will continue to be carried on regular DirecTV channel lineup. However, the HDNet Movies channel will move to the HD Extra Tier pack, which will cost subscribers $4.99 per month.

Word of the settlement broke in an e-mail from Cuban. In part Cuban said, “HDNet will be fully distributed and HDNet Movies will be available on the Extra Pack Tier. It’s a win-win for all involved.” A DirecTV spokesman confirmed that a settlement had been reached, but did not elaborate on the details

Well, Mark as far as calling the agreement a win-win, at least your half right. Win-Lose is more like it…

For satellite television provider DirecTV, it’s a definite win. They get to put a premium channel in HDNet Movies on to their Extra Tier pack, so they have a 24 hour movie channel without commercials to offer subscribers. That will certainly give their HD Extra Pack some more bang for the buck. On the other hand, HDNet loses in this one. Yes they do keep HDNet on the main channel lineup, but by allowing the transfer of the movie channel to the Extra Tier pack, they allow what they originally were fighting against—much lower household penetration for their secondary network.

Overall, DirecTV wins, and HDNet loses in this case.

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