DirecTV Struggles, Posts Lower Numbers Than Expected

Dish Network wasn’t the only United States satellite company hurting Tuesday as DirecTV also announced a third quarter loss–which uniquely enough was also due to a contract dispute with a major broadcast network. The nine days that DirecTV removed Viacom cable networks from their lineup seems to have hurt the number one satellite company more than they original projected.

DirecTV claimed to have generated a higher average revenue per subscribers, however noted that their cancellation rate increased to 1.74 percent, up from 1.62 percent just a year ago. The company said that this was mainly driven due to the loss of 26 Viacom stations back in July. DirecTV and Viacom came to an agreement nine days later, however the damage to the subscriber base had already been done.

Despite the loss of customers, DirecTV added 67,000 subscribers in the quarter ending September 30th. This was down from an expectation of at least 105,000 subscribers as many analysts expected the company to do strong numbers because of the ever popular NFL Sunday Ticket Package they provide to sports fans.

Latin America, a market which DirecTV absolutely dominates in saw large increases including a half-a-million plus increase in new subscribers–but even that fell short of analyst’s expectations of 575,000 subscribers. While the market remains flat in North America, DirecTV is turning its attention to Latin America and seeing great success there, increasing revenue by nearly 8 percent.

Despite the losses in the United States, DirecTV continues to market to the masses, including a new popular television advertisement for their new five-show DVR recording technology–a feature they are banking on to get them where they need to be in the all-important Holiday fourth quarter in North America.

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