News
DIRECTV: Two More HDTV Satellites Planned?
The satcaster reveals that it might launch yet another satellite after a scheduled March 2008 launch.
By Swanni
In other HD-related remarks from yesterday's investors call, DIRECTV CEO Chase Carey commented on:
DIRECTV's Exclusive 'NFL Sunday Ticket' Package
(The deal with the National Football League expires with the end of the 2010 season.)
"It’s awful early and it really is the (2011) season -- is the first one we’re not licensed -- so you are practically three-and-a-half years out...
Sunday Ticket’s been a great property for us and there’s no two ways about it -- it comes at a big price. I’m not going to pre-negotiate where you get to it. Is there a price at which it doesn’t work? You know, yes, but I think we have a very good relationship with the NFL.
I think they tremendously value and respect what we have done with the franchise, adding the Super Fan package, continue to enhance it, the HD components. I think we’ve been...very much a part of making the NFL clearly unique in the television sports world and a power inside that and we will continue to do so and we’ll deal with the issues that come up.
DIRECTV's 4Q Increase In Subs & Revenue
"Clearly one of the key factors driving the quality subscriber growth was demand for HD and DVRs which represented comfortably over 50% of our gross (subscriber additions). (Carey added that the fourth quarter gross additions due to HD and DVRs was only about 33 percent a year ago.)
Future of HD and DVRs
"I’m a big believer that...the DVR and HD have a momentum behind them that are making them sort of mainstream products to American households. I think the DVR is ahead of HD on that curve but they’ve both got a lot of momentum. I don’t think these are products that are sort of maturing out at 40% or 50% of American households. I think they are ones that will become much more mainstream foundations in the television experience."
Cost to Manufacture HD DVRs
"Our HD DVR will cost in the low $200 range by late 2008 versus well over $400 a year ago. At the same time, we expect our 2008 upgrade spending to be below 2007 as we benefit from efficiencies and our leasing program kicks in."
Patrick Doyle, DIRECTV's chief financial officer, added yesterday that the satcaster added more than 600,000 new HD and/or DVR subscribers in the fourth quarter. The company's HD/DVR penetration is now 40 percent, compared to 30 percent a year ago.
In addition, new customers purchasing HD and/or DVR service jumped from around 30 percent in 2006 to more than 50 percent last year.
Also see: DIRECTV: HDTV Boosts Revenue, Subs
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