Video ad company FreeWheel announced DirecTV as a new client last week. The satellite TV giant chose to work with “the startup to improve monetization on new digital platforms, and has taken an equity stake in FreeWheel to help make it happen,” writes TechCrunch. DirecTV — and other cable, satellite and telco companies — are making investments in services that promote TV Everywhere. Continue reading DirecTV Hires FreeWheel, Hopes to Monetize Digital Content

We recently reported that a new premium VOD service from DirecTV was in the works that would make movies available in the home shortly after their theatrical release.  The Hollywood Reporter now says 23 industry leaders — including Peter Jackson, James Cameron, Michael Bay, Michael Mann and Kathryn Bigelow — have thrown their support behind the National Association of Theatre Owners (NATO) by signing an open letter in opposition of the new distribution model.

NATO is running the letter this week in Variety at the same time the new VOD service — dubbed Home Premiere — is launched (the first available title will be Sony’s “Just Go With It”). According to DirecTV, new movie releases will be available in 1080p HD for $29.99, months before they are available on Netflix, DVD or Blu-ray. THR reports that theater owners are threatened by this proposal and what they see as a disruption to a proven distribution model. The directors and producers who signed NATO’s letter do not believe a premium VOD service will solve slumping DVD sales, and could negatively impact the platform release patterns of specialty films and lead to additional piracy issues.

“As a crucial part of a business that last year grossed close to $32 billion in worldwide theatrical ticket sales,” the letter states, “we in the creative community feel that now is the time for studios and cable companies to acknowledge that a release pattern for premium video-on-demand that invades the current theatrical window could irrevocably harm the financial model of our film industry.”

Related THR story: “7 Key Questions Surrounding DirecTV’s Premium VOD Service Controversy” (4/19/11)

Related Bloomberg story: “DirecTV Starts Premium Film Rentals at $29.99 for 48 Hours” (4/19/11)

The nation’s No.1 and No. 2 satellite TV providers may be looking for new ways to provide movies to consumers. Dish Network (No. 2) recently purchased the assets of bankrupt Blockbuster for $320 million and may use the company’s online streaming service to take on video rental enterprises such as Netflix.

Meanwhile, DirecTV (No.1) is reportedly in talks with Hollywood studios regarding a new movie rental service that would provide $30 rentals just two months after films’ theatrical releases. Studios that are looking to combat slumping DVD sales believe that some consumers, especially families, may be willing to pay the higher fee for access to titles prior to their availability on DVD or from services such as Netflix.

Analysts explain that movie studios are open to new online streaming or pay-per-view models in order to recoup revenue from declining DVD purchases. We may also see $30 premium movie-on-demand offerings from cable firms such as Comcast and Time Warner Cable.

Related TVPredictions.com post: “DirecTV to Offer $30 VOD Next Week?” (4/15/11)

Related Engadget post: “DirecTV, Comcast, Vudu could start offering premium VOD $30 movie rentals in April” (3/31/11)

Michael White took over the reigns of DirecTV the beginning of this year as the new president and CEO. During a recent three-day retreat with senior executives, White outlined the company’s strengths and weaknesses, and shared his vision for future growth, especially in regards to possible expansion in Latin America and reaching out to customers who use mobile devices. Investor’s Business Daily reports that DirecTV “is the world’s largest pay TV services provider with more than 28 million subscribers in the U.S. and Latin America.”

White emphasized that DirecTV is in excellent shape, but that an effective strategic plan would help steer the company into the future. His immediate focus is on recent deals with AT&T and Verizon that allow DirecTV to sell broadband services over fiber networks, the next phase of DirecTV’s recently launched free iPad application, and expanding the number of customers in Latin America (currently at 9 million).

“I was convinced that Latin America was still the best growth opportunity, and we should really expand more aggressively in Latin America,” White said. “In the U.S., we had a terrific core business, but we needed to address the ‘anytime, anywhere’ TV evolution and we needed some other revenue growth opportunities to help drive the top line while we were wrestling with higher programming costs.”

DirecTV’s first iPad app has some interesting features, yet is somewhat limited in its functionality for those truly on-the-go. It can serve as a remote control to change channels, browse channels without interrupting what’s on TV at the time, record to a DVR, and create a home screen with access to favorite channels. Users can use the app outside the home to schedule programs, but cannot currently use it to view programming. This may be the biggest obstacle for mobile device enthusiasts. White explains that phase two will enable users to import DVR content that has already been recorded to the iPad for remote viewing.

White says that DirecTV’s strategy to increase market share in Latin America involves a segmented approach by focusing on the quality of HD and DVR offerings — in addition to offering lower-priced packages, specifically targeting the middle-class who have so far been reluctant to take the plunge with paid services.

In the wake of disappointing 3D TV sales for 2010 (due in large part to a lack of 3D content), this year may see new traction as television vendors switch their strategy to marketing 3D as one feature of new high-def sets, rather than the single selling point. More 3D content is on the horizon via cable and satellite TV channels, Blu-ray Discs and video games. Eventual adoption may also be impacted as consumers shoot their own video with 3D-enabled camcorders.

Disney’s ESPN 3D sports channel began broadcasting in mid-February — while Sony, Discovery and Imax launched their 3net channel the same month. Comcast and DirecTV already have 3D channels, and more than 100 3D channels worldwide are expected by 2015.

“Clearly, lack of content has been holding the market back,” explained Chris Chinnock, president of research firm Insight Media. “But one or two years into the HDTV transition there wasn’t much programming either … It took about seven years to reach 11 percent (household) penetration with HDTV.”

DisplaySearch predicts 6.6 million 3D TVs will ship in North America in 2011 (16 percent of the more than 40 million sets expected to be sold). The research and consulting firm is targeting 15.2 million 3D TVs to ship in 2012 (up 130 percent).