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Last year Time Warner Sued DirecTV for false advertising; now it's time for Comcast to join the party

Competition in the cable and television industry is as fierce as it is in the IT industry. This week, two major television giants DirecTV and Comcast go up against each other in a case over false advertising. DirecTV filed a lawsuit against Comcast this week over an ad campaign that DirecTV claims is untrue.

According to the suit, DirecTV charges Comcast with not only false advertising but also deceptive business practices in print, radio and Internet ad campaigns. Comcast's advertisements make claim that satellite subscribers feel that Comcast's cable HDTV service provides higher quality images.

In a bold statement, one of Comcast's ads claim, "Comcast wins the HD Picture Challenge, Satellite customers agree: HD looks better with Comcast."

DirecTV representatives indicated that there's no substantial evidence for Comcast's claim that its service is better. "The magid survey upon which Comcast relies does not provide or sufficiently substantiate the propositions for which Comcast cites the survey," the suit said. "Comcast's advertising and promotional claims, including the aforementioned, are literally false."

Comcast representatives indicated that the company stands behind the results of its survey.

Late last year, Time Warner sued DirecTV for the same, claiming that DirecTV produced false ads. DirecTV produced ads claiming that people would not be able to watch certain NFL football games without subscribing to its services. The ads appeared in newspapers nationwide.

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RE: Regulation
By Oregonian2 on 5/29/2007 7:59:31 PM , Rating: 2
Not sure what you're talking about. In terms of Verizon's FIOS, they're spending an incredible amount of money to build the network, and I've a number of friends who've had the service for quite a while (at least the internet service part, the video service is new) and they love it. Unless they use debt-financing to pay for it, they're going as absolutely fast as they can (read the quarterly financial stuff they put out as to their capex spending).

Unlike a lot of other countries, we're not a zillion people per square foot. The US is spread out a lot more than many places it costs quite a bit to install things -- plus Americans are rather frugal so getting people to pay for wowie zowie stuff at a high enough percentage to get the per-user costs down can be a problem (where places like Japan have higher acceptance for spendy nice things from things I've read). Not sure why Verizon is bringing FIOS to our part of the country (west suburbs of Portland) other than we're the state's high-tech area (Silicon Rain Forest) so the acceptance percentage may be good (and that we're a Verizon area for landline phone service, formerly a "GTE" area).

The problem isn't delivery, it's making a business case of being able to profit off of it (yes, I'm using the evil word "profit", but that's what makes things happen everywhere). It's not cheap to run that fiber under my neighborhood's streets to my house and all the others (most of whom may not pay anything at all for it), especially when cable is already installed. High density places are cheaper to deliver service, but, uh, sometimes high density housing in the U.S. isn't the kind that house middle to upper class folk who would pay for FIOS sort of services. Those who would most likely sign up for it tend to be be in spread out suburbs (I only say this statistically, there are high-rise places I know locally that are VERY spendy places). Of course, other areas may vary, I only speak of the cities that I've lived in over the years. I also know that some places in the US can be very spendy to have things installed due to government and union rules. If it can't be made to at least look profitable it won't get done.

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