DISH Networks has made much noise with HD recently, culminating with their launch of an all HD package, branded TurboHD. Now comes word that they are the “first” pay-TV provider to go all MPEG-4 with standard and high definition programming. “New customers in 21 designated markets in the eastern half of the U.S. who sign up for any DISH Network HD package will be the first in the nation to receive the industry's most advanced delivery system on all televisions connected to DISH Network service,” said DISH in a company statement. The moves come on the heels of a couple dismal quarters for DISH, including 2Q08, where they lost subscribers for the first time in history.

So will these moves be enough? Maybe. You have to give DISH credit. They faced a major setback in HD earlier this year when they lost a satellite shortly after launch. They’ve managed to get past that hurdle. The MPEG-4 announcement makes for a great press release, but I’m not sure how much of an impact it will have on everyday consumers and their choice in pay-TV service. The TurboHD offering has a better chance of moving the needle for them. In addition, they announced new value programming options of $10/month and $20/month, tied to the DTV transition, echoing similar DTV exploitation strategies being pursued by cable competitors. DISH is feeling competitive heat from all angles, including telcoTV providers. It appears as if they are making some real efforts to meet those competitors head on, and reverse the trend of the past two quarters. Will it work?

NRTC and NTCA formally unveiled their SES AMERICOM powered IP Prime product today at the NTCA Fall Conference. IP Prime is a centralized end to end IPTV network, targeting small telcos with a managed IPTV network. North Central Telephone Cooperative of Lafayette, TN was named as the first IP Prime non-beta customer. IP Prime has been in trials with several telcos, including West Kentucky Rural Telephone of Mayfield, KY and BEK Communications of Steele, ND. The NRTC/NTCA partnership will also be marketing a programming rights package for telcos who utilize a non-IP Prime IPTV platform.

IP Prime has garnered much interest among the IOC sector. IP Prime is joined by Avail Media and Falcon Communications, all of whom are targeting the rural telecom sector with a managed MPEG-4 IPTV platform. All of these solutions should stimulate the IPTV market in the U.S., and we may soon see numerous telcos launch IPTV service in the coming months. Many of these telcos have been standing on the sideline, waiting for these managed platforms to become available. These developments should further stimulate an already active rural competitive landscape, empowering telcos to compete with rural cable operators and national DBS providers.

The Cable & Telecommunications Association for Marketing (CTAM) released a report today that says 29% of cable TV customers own an HDTV set, compared with 15% a year ago. “HD sets are flying off the shelves and digital cable consumers are getting an HDTV programming package to gain the full benefits of their new sets,” says CTAM CEO Char Beatles.

The issue for video service providers, particularly IPTV via DSL carriers, is not how to deliver HDTV, rather how do you deliver multiple HDTV feeds. Many are hoping that MPEG4 is the answer. But even with MPEG4, many a IPTV carrier will be challenged to meet this multiple HDTV feed demand, and thus competitively disadvantaged.