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HDNet sues DirecTV?
November 7, 2007
Ok so maybe he couldn’t dance, but if I were a betting man I would say that Mark Cuban can do the tango in court. It appears that the self made billionaire is getting ready to put on his dancing shoes again as he gets ready to take on DirecTV.
It appears that the billionaire is upset with DirecTV for planning on taking his HDNet channel out of its basic High Definition package and moving it to DirecTV’s new $4.99 HD Extra Package.
Late last week news of this lawsuit was posted to numerous online forums. It was reported that HDNet recently filed 26-page document in the 101st Texas state district court (case number 07-12962) the reported summary told the entire story.
"After using HDNet as the critical lynchpin to establish DRECTV as the industry leader for high-definition broadcasting, DIRECTV is now embarking on an unlawful campaign to destroy HDNet and to usurp its position in the market. In gross violation of their contractual obligations, Defendants have decided to effectively kill HDNet's viewership by moving the two broadcast package - where the channels are distributed to more than 2,000,000 households - to a newly created obscure and overpriced package that puts the HDNet channels well beyond the reach of the average television viewer. In its place, Defendants seek to feature their own programming and that of their favored partners, Liberty Media Corporation ("Liberty") and entities controlled by Liberty's Chairman, John C. Malone. The Court and jury should not allow such discriminatory and abusive behavior to continue. For Defendants' actions, HDNet seeks emergency injunctive relief, actual and punitive damages, attorney's fees, pre- and post judgment interest, and costs."
(Note: as of this writing I have been unable to obtain a full version of this 26-page document. If you know where I may obtain it please email me at feedback@satelliteguys.us)
From where I sit, this appears legit, and you know what, I believe Mark Cuban is 100% correct and may have a good case. HDNet has been one of the core HD channels on DirecTV for years now. To make people pay an extra $4.99 for it is crazy. Especially when DirecTV CEO has said a few times including at the August DirecTV Earnings conference call, that “we will not have a programming cost increase related to HD.”
DirecTV’s plan is to move all the channels that do not have a standard definition mirror into its own programming package called the “HD Extra package” the planned channel lineup for this package including HDNet, HDNet Movies, MGM HD, Smithsonian HD and MHD. This package will be $4.99 a month and requires that you are also subscribed to DirecTV’s regular HD package at $9.99 a month. If you want all the national HD channels that DirecTV offers, it’s going to cost you $14.98 after December 15th.
My feelings are that DirecTV customers have been paying for HDNet in the regular HDNet package for years now. If DirecTV wants to throw HDNet into a different tier that’s fine, however existing subscribers should be grand fathered so that they continue to receive HDNet at no additional charge.
If there is no lawsuit, then perhaps there should be one.
So Mark, while I never voted for you on “Dancing With the Stars”, I am here to support you 100% on this issue.
Posted by Scott Greczkowski on November 7, 2007 | Comments (6)
