Thursday, May 04, 2006

DirecTV slipping?

DirecTV just announced their latest set of results and displayed a split performance as earnings were improved thanks to good ol' News Corp style tight cost management, while new subscriber numbers fell below the psychologically important 1M level.

So, from a perspective of existing customers, DirecTV continues to do well as they reduce the cost of operations and increase average revenues per customer. But, from a new subscriber perspective it looks like DirecTV is suffering from not having a triple play to compete effectively with the cable companies.

News Corp need to get a leading edge hi-speed Internet service alongside Internet telephony for DirecTV to fight back with. If not, I fear they will continue to lose the battle for new subscribers - leaving the spoils to the cable guys.

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