DirecTV Group, Inc (NYSE:DTV) reports its third quarter earnings on Wednesday as it continues to face challenges from other satellite and Cable providers.

DirecTV is expected to post consensus earnings of $0.29 per share, according to analysts polled by Thomson Financial.

On Monday, rival firm Verizon (NYSE:VZ), Verizon which is aggressively expanding its television offerings, promised to give its user 150 high-definition channels by the end of next year. DirecTV says it will 100 by the start of the year.

Analyst Anthony Noto of Goldman Sachs expects earnings per share of 28 cents on a revenue of $4.2 billion. He expects DirectTV to grow its HD channels from 70 today to 100 by the end of the year and 150 by 2008.

The new HD offering will be the focus of DirecTV's marketing efforts as DirecTV looks to increase its competitive positioning and capitalize on its lead in differentiated content, Noto said in a note to clients. He expects the number of HD channels - currently 70 - to hit 100 by year's end and 150 in 2008.

In its second quarter, DirecTV's profit dropped 2 percent from the previous quarter, missing expectations.

Shares of DirecTV fell $0.36 on Monday, or 1.41 percent, to $25.26.