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DIRECTV: 41 Percent Have HD And/Or DVRs
The satcaster says its new high-def satellite will be ready in the third quarter.
By
Swanni
 
Washington, D.C. (May 8, 2008) -- DIRECTV says that seven million customers now subscribe to a High-Definition and/or Digital Video Recording service.

That number represents 41 percent of the satcaster's total audience of 17.04 million subscribers. DIRECTV reported a year ago that approximately 30 percent of its audience was subscribing to an HD and/or DVR service. (DIRECTV does not break out statistics for individual high-def and DVR subscribers.)

The rise in 'advanced service' subs can be credited to DIRECTV's decision to expand its high-def programming lineup. The satcaster last fall had just nine national HD channels, but has since increased that total to 95.

DIRECTV HD and DVR customers spend nearly $100 per month on programming packages, which is more than 50 percent greater than a non-HD/DVR customer, according to DIRECTV CFO Patrick Doyle.

DIRECTV made the subscriber disclosure yesterday in an investors call following its first quarter report which showed a net increase in subscribers of 275,000.

In addition, the company's U.S. revenues rose 14 percent in the first quarter to $4 billion and the average monthly revenue per subscriber increased 8.6 percent to $79.70.

In other HD-related remarks during yesterday's investors call:
 
Refurbished Set-Tops
* DIRECTV has increased the number of 'refurbished' set-tops in its HD and DVR lease program, allowing the company to reduce spending on the set-top program.

New HD Satellite
* DIRECTV's new HD satellite, which was launched in March, will be ready in the third quarter. At that time, DIRECTV says it will have the capacity for 150 national HD channels.

More HD/DVR Subs
* By 2010, 70 percent of its audience will subscribe to an HD and/or DVR service.
"
I think things like a DVR will become just like a VCR or a DVD player was in a home and become a mainstream part of an experience, as will HD," said DIRECTV CEO Chase Carey.

Video On Demand
* DIRECTV's new Broadband-enabled Video on Demand program is years away from having an impact on the average revenue per subscriber (APRU). "I think VOD continues to be probably a longer term proposition...I think VOD will continue to grow but I think it will grow over a longer timeframe. Customers need to understand and start to use it."

TiVo
DIRECTV is "not doing a lot" in regard to expanding its relationship with DVR service TiVo, says CEO Carey. The executive said the company is now focused on deploying company-owned DVRs for new services, such as VOD and home networking. (DIRECTV pulled the plug on its marketing relationship with TiVo a few years ago, but still offers service for existing TiVo/DIRECTV set-tops.)

"I think we have a constructive relationship (with TiVo)," said Carey. "We are not doing a lot in all honesty but I think we have an honest dialog that I think is sincere about seeing if there are things that make sense for us."

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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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