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DirecTV Drags To 4th Quarter Loss



DirecTV reported last Thursday that they posted a fourth-quarter loss after a large merger charge.  Combine that with the satellite company adding 60% fewer new subscribers because of better deals from competitors, they took a huge hit.  While DirecTV has benefited from cable companies battling each other for subscribers, their biggest competition is still the evil empire that is DISH Network.

DISH has recently run smear ads claiming that DirecTV’s service is much more expensive, causing DirecTV to file a lawsuit for false advertising.  While this might deter some people, DirecTV has focused on customers with higher credit scores and in turn won higher paying viewers for more HD channels.  Because of this, their revenue is considered to be more viable and reliable than that of, let’s say, DISH Network.  DirecTV is still expanding their HD channel service as well as starting a 3-D channel, again in order to lure more of the higher paying customers.  However, in order to attract more subscribers and thus in turn more revenue, they need to offer cheaper plans.  People are still watching how much they spend on things and probably don’t want to receive a $150-$200 satellite television bill.

All in all, DirecTV lost 3 cents per share, which might not seem like much.  But the total loss is $32 million, something that I’m sure executives will try to rectify in the near future.  What does this mean?  Perhaps they will lower their plans slightly to entice the average person to at least think about changing.  I just know that a $32 million loss is unacceptable.

Topics: General | 1 Comment »

One Response to “DirecTV Drags To 4th Quarter Loss”

[…] executive who joined the company on Jan 1., laid out his vision for the satellite leader after a fourth quarter loss after absorbing certain entertainment assets spun off by Liberty Media […]

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