UPDATE 1-DISH gets HD boost with satellite launch

(Adds EchoStar 2 failure)

NEW YORK, July 16 (Reuters) - DISH Network Corp's (DISH.O) plan to roll out more high-definition video channels received a boost in the early hours of Wednesday after the successful launch of the company's EchoStar XI broadcast satellite.

DISH, the second-largest U.S. satellite TV operator, needs to roll out more HD channels to be able to compete with larger rival DirecTV Group (DTV.O) as well as cable and phone companies' video services.

The Denver-based company's HD plans were set back in March when a satellite launch by SES Americom failed to reach its intended orbit. The SES Americom satellite was entirely contracted by DISH affiliate EchoStar Corp (SATS.O).

DISH said earlier this month that it would add another 17 national HD channels, bringing its total to 100 ahead of its original year-end target. DirecTV has said it will have 150 HD channels by the year-end.

DISH also said it would introduce TurboHD, an all-HD programming package.

The satellite operators are aggressively pushing HD as a way of differentiating themselves from cable operators. Although cable companies are also launching HD channels at a rapid pace, they are still behind the satellite operators on average.

"Offering a wide variety of HD channels is important among pay-TV providers and is really important in today's market," said Collins Stewart analyst Thomas Eagan. "DISH would have been at a disadvantage to its competitors if this satellite did not launch successfully."

DISH said in a filing on Wednesday that its 12-year-old EchoStar 2 satellite had experienced a "substantial failure" that appeared to have rendered it a total loss.