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Why
DIRECTV's Sub Totals Keep Growing
By Swanni
Washington, D.C. (May 6, 2011) --
DIRECTV yesterday reported that it added net 611,000 customers
worldwide in the first quarter, including 184,000 in the United
States.
The wide majority of DIRECTV's sub gains came from the
economically booming Latin America. But the satcaster's U.S.
gains were also impressive in an environment in which some U.S.
TV providers, such as Comcast, recently have reported video subscriber
losses.
(DIRECTV also had a net gain of 289,000 subs in the 2010 fourth
quarter; the satcaster now has 19.4 million subs in the U.S., a
four percent increase from a year ago.)
Asked why DIRECTV has continued to add subs in the U.S., company
CFO Patrick Doyle yesterday told Wall Street analysts in a
conference call that the numbers "exceeded our internal
projection."
Although DIRECTV has added fewer HD channels in the past two
years, Doyle credited a strong interest in HD and/or DVR
services in generating new subscribers.
"Our
percentage of gross additions taking advanced products was
nearly 80 percent for the second consecutive quarter and over
two-thirds of these subscribers signed up for both HD and DVR
services," Doyle said.
In related items, DIRECTV said yesterday that:
* More than one million DIRECTV subscribers have now connected
their set-tops to the Internet, which represents only about six
percent of the audience. But the company hopes to reach the two
million mark in 2011 and, eventually, 40 percent of the overall
audience. The satcaster believes owners of connected set-tops
will be more likely to order Video on Demand films available via
Internet downloads.
* DIRECTV CEO Michael White refused to reveal early buy rates
for the company's 'Home Premiere' VOD service in which
near-theatrical films are sold for $29.99 each. But he said the
company currently doesn't have any plans to change the price
point or the time frame for when the movies are shown after they
play in the theater. "We're pleased so far and we'll see how it
goes."
* DIRECTV, which has been a big booster of 3D TV, launching
four channels, acknowledged that the technology is still in its
infancy. "3D continues to be a part of the offering,"
said White. "We've got the N3D channel and I think you really
need to see a lot more 3D television sets sold to build scale on
that longer-term and it's still a relatively small percentage of
our total subscribers that have 3D television sets."
In the conference call with analysts, DIRECTV executives did not
mention any plans to add more HD channels.
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© TVPredictions.com ______________________________________________________
Phillip Swann is president and publisher of TVPredictions.com.
He has been quoted in dozens of publications and broadcast
outlets, including CNN, Fox News, Inside Edition, The New York
Times, The Washington Post, The Chicago Tribune, The Financial
Times, The Associated Press and The Hollywood Reporter. He can
be reached at swann@tvpredictions.com
or
at 703-505-3064.
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