QUOTE AND NEWS
SeekingAlpha  6 hrs ago  Comment 
By Regarded Solutions: AT&T (NYSE:T) has long been one of my all-time favorites. The stock is a dividend aristocrat with a current yield of 5.35%, which might just be the most enticing value to own the stock right now. That being said, the deal...
Benzinga  Aug 26  Comment 
In a report published Tuesday, Wunderlich Securities analyst Matthew Harrigan reiterated a Hold rating and $95.00 price target on DirecTV (NASDAQ: DTV). In the report, Wunderlich Securities noted, “Sports Business Journal reported prior to the...
newratings.com  Aug 26  Comment 
DALLAS (dpa-AFX) - AT&T Inc. (T) entered into a tentative agreement with antitrust regulators to help pave the way for its proposed $49 billion acquisition of satellite-TV company DirecTV (DTV), the New York Post reported. The report indicated...
TheStreet.com  Aug 25  Comment 
NEW YORK (TheStreet) -- Shares of DirecTV are higher by 1.04% to $85.43 on heavy volume in mid-afternoon trading on Monday. The stock began to rise following a report by the New York Post suggesting AT&T has come to terms with the federal...
Benzinga  Aug 25  Comment 
DirecTV (NASDAQ: DTV) shares spiked Monday on a report that an agreement with antitrust regulators paved the way for its $4.85 billion acquisition by AT&T (NYSE: T). The New York Post reported the deal will obtain clearance in October from the...
SeekingAlpha  Aug 25  Comment 
By Anthony Parsons: DirecTV (NASDAQ:DTV) offers superb value at current price levels for income investors, as well as those who hope to realize a significant capital gain. Based on its buyout terms with AT&T (NYSE:T), shareholders of DirecTV stand...
SeekingAlpha  Aug 25  Comment 
By Gary Bourgeault: Limitations in the past didn't allow satellite companies to offer targeted ads in a way that brought a specific message to a specific household, but that has changed now, as DirecTV (NASDAQ:DTV) and Dish (NASDAQ:DISH) have...
CNNMoney.com  Aug 24  Comment 
Glenn Beck's quest to get onto cable television lineups briefly led him to seek out help from CNN earlier this summer.
Motley Fool  Aug 20  Comment 
DirecTV's management is focused on running the company in the interest of its shareholders, just as it did before the agreed buyout. Here are five important things from DirecTV's second-quarter 2014 conference call
StreetInsider.com  Aug 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Management+Changes/DreamWorks+Animation+%28DWA%29+Taps+DIRECTV%27s+%28DTV%29+Merchant+as+CFO/9762117.html for the full story.




 
TOP CONTRIBUTORS

The DirecTV Group (NASDAQ:DTV) is the largest provider of household satellite television in the United States and has a customer base of over 18.5 million.[1] The company markets itself as the leading provider of differentiated and exclusive content, and the leader in high definition (HD) programming. DTV offers exclusive programming such as the NFL SUNDAY TICKET package and over 95 Spanish and international language channels, which are not available via cable or other satellite service providers.

Satellite television is the leading alternative to the traditional cable television and has experienced rapid growth in the past decade. However, DTV and the satellite industry continues to face challenges from traditional cable companies like Comcast (CMCSA), Cablevision Systems (CVC), and Time Warner Cable. These companies are not only much larger than their satellite competitors, but also have capacity to offer bundled services which includes TV, telephone, and high speed internet. DTV has recently begun to offer similar services through a partnership with AT&T (T) and other internet service providers, but may lose the ability to do so, as AT&T (T) continues to roll out its own video services.

Company Overview

DTV's revenue comes from the monthly subscription rates for programming that it provides to households. Depending on the number of channels and premium programming that a customer requests, the amount each household pays can be vastly different. For acquiring each customer, DTV incurs significant costs by often times giving away equipment and providing installation. The company sales strategy is to recoup the cost by ensuring the customer stays with the company for at least a few years.

Business Financials

In 2009, DTV posted total revenues of $21.6 billion, an increase from its 2008 total revenues of $19.7 billion.[2] However, its net income did not have an increase. Between 2008 and 2009, DTV's net income declined by 50%, from $1.52 billion in 2008 to $1.01 billion in 2009.

Business Segments

DirecTV operates through 2 primary segments: i) DirecTV U.S., and ii) DirecTV Latin America.

DirecTV U.S.

This segment distributes over 1,700 digital video and audio channels, including 70 XM Satellite Radio music channels, 31 premium movie channels, over 35 regional and specialty sports networks, 95 Spanish and other foreign language channels, and over 45 pay-per-view channels.

DirecTV Latin America

DirecTV Latin America is the leading provider of digital television services throughout Latin America, which includes South America, Central America, and the Caribbean. DTV LA provides service under the DIRECTV and SKY brands to approximately 1.3 million subscribers in Brazil and approximately 1.4 million subscribers in the rest of South America. DTV's affiliate, Sky Mexico, has approximately 1.4 million subscribers in Mexico.

Trends and Forces

Bundling

Bundling is the marketing strategy of cross-selling customers across cable, Internet, and voice services. For example, Comcast (CMCSA) offers this bundled service as the "Triple Play" and charges approximately $99 per month. Consumers benefit because they have one consolidated monthly bill, and one company to deal with if there are problems. DTV primarily offers entertainment and has begun to offer high-speed internet through a partnership with AT&T (T) and other internet service providers. However, DTV still doesn't offer voice services and may therefore face tough competition from the cable industry, if customers favor the full bundling option.

Housing Market

With more than 85% of television owners already paying for cable or satellite services, the number of new potential cable customers is small. New homes provide new potential customers for cable companies and as a result, growth in the cable industry is closely tied with growth in the housing market. Recent deceleration of the housing market could mean a loss of growth for DTV's service.

FCC Regulation

The FCC covers communications by radio, television, wire, satellite and cable in the United States. New regulation, such as the rule requiring all new TVs to contain a tuner capable of receiving digital broadcasts, instead of the old analog signals, by 2009, can have significant impact on the industry.[3] The switch to digital could benefit DTV, since it is currently the leading carrier of HD and digital channels.

Competition

DTV faces competitors in the satellite television market and in the home entertainment sector at large. EchoStar Communications (DISH) is its main competitor in the satellite television market and has nearly 13 million customers. However, DirectV is sold in more electronic retailing stores than Echostar, and as a result Echostar must spend more on advertising to spread the word of its existence than DirecTV. DirecTV also has an advantage over EchoStar, by providing the most comprehensive offering of HD programming. DTV also faces tough competition from cable television competitors such as Time Warner Cable, Comcast, and Charter Communications (CHTR).

Reference

  1. DTV 10-K 2009 Item 1 Pg. 4
  2. DTV 10-K 2009 Item 7 Pg. 51
  3. Boston Globe
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki