In an interview with Advertising Age, Guyardo noted that DIRECTV added 275,000 subscribers in the first quarter, compared to just 35,000 for rival Dish Network. The marketing exec cited three reasons for the subscriber boost:
1. DIRECTV's lineup of High-Definition channels, which now stands at 95, more than any other TV provider.
2. Consumers' decision to spend more money on home entertainment due to high gas prices.
3. DIRECTV's decision to target higher-income subscribers who will have more disposable cash in an economic downturn.
"I don't want to say that we are recession-proof, but I will say that we have not been dramatically affected by the recession," Guyardo told Ad Age. "Right now is a time when people don't necessarily have those discretionary dollars to go out to entertainment outside of the house. And so now more than ever, they're turning to their television as a source of entertainment. And at the end of the day, DIRECTV is an exceptional value."
Guyardo added that DIRECTV launched an aggressive marketing campaign last year to promote its expanded HD lineup -- just when many consumers were starting to feel the economic pinch. The satcaster expanded its high-def channel total from nine to more than 70 last fall.
"All of our awareness studies would suggest that people clearly do understand that DIRECTV is the undisputed leader in HD." he said.
The DIRECTV executive also opined that the growth in high-def set sales may be declining. But he believes that his company is well positioned to attract future HD subscribers.
"People are still investing a ton of money in big, flat-screen TVs, HDTVs. The growth has definitely leveled off, but the growth is still there. And I think they want a quality picture on their 50-inch Plasma," he said.
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