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DIRECTV to Cut Spending; Bad News For HD Fans
By Swanni

Washington, D.C. (Nov. 21, 2011) -- DIRECTV says it will "tighten our belts" in 2012 and reduce spending on overhead, hiring and programming, reports Bloomberg News.

The announcement does not bode well for HD enthusiasts who have been urging the satcaster to add more high-def channels. DIRECTV has dramatically slowed the addition of HD channels in the past two years, citing the rising cost of programming fees as one reason.

In an interview with Bloomberg, DIRECTV CEO Mike White said the uncertain global economy will force his company to "slow our growth rate" in 2012.

“We’re tightening our belts in terms of spending,” White told Bloomberg. “We’ll cut back on overhead, hiring and programming.”

White, however, said the company would not reduce spending on new digital projects such as 'TV Everywhere,' which permits subscribers to watch shows on mobile devices. The executive did not comment on DIRECTV's 3D initiative in the interview.

But White did say DIRECTV is considering offering less expensive programming packages that do not include sports channels. The packages would be designed to appeal to consumers looking to cut their own spending.

DIRECTV's "slow growth" statement oddly comes just a few weeks after it reported that it added 327,000 net subscribers in the third quarter.  However, the satcaster acknowledges that a free NFL Sunday Ticket promotion was a major reason for the increase and White told Bloomberg that he's unsure if DIRECTV will offer the same promotion in 2012.

What do you think? Offer your comments below!

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