Telcos Account for 45% of DirecTV’s Gains

[lee espinoza]

BellSouth Corp. and Verizon Communications Inc. accounted for almost one-half of net direct-broadcast satellite subscriber additions for DirecTV Inc. in the fourth quarter of 2005 :eek: :eek: :eek: , which is believed to be the first time DirecTV’s telco additions almost matched DirecTV's share.

DirecTV added 200,000 subscribers in the quarter. With BellSouth reporting 40,000 additions and Verizon 50,000, the two telcos accounted for 90,000 additions, or 45% of DirecTV’s total.

EchoStar Communications Corp. has yet to announce its fourth-quarter numbers, but SBC Communications Inc. (now part of AT&T Inc.) said it added 134,000 video subscribers in 2005. Verizon said it now counts 350,000 DirecTV subscribers, while BellSouth said it has 523,000.

[Joe C]

This means people want bundling of services, at least that what it looks like to me.

[LostCluster]

Not a good sign for DirecTV in the long run because Verizon plans to eventually run FIOS all over their coverage range, and when they do that FIOS TV will be the video service they'll be selling. Other telcos can't be too far behind. Bundled billing customers will be extremely easy to poach.

[DesignDawg]

Not a good sign for DirecTV in the long run because Verizon plans to eventually run FIOS all over their coverage range, and when they do that FIOS TV will be the video service they'll be selling. Other telcos can't be too far behind. Bundled billing customers will be extremely easy to poach.
Don't assume this is DirecTV's endgame plan for getting in on the bundling. They are currently investing billion(s) in high-speed internet service (NO, NOT by satellite), which they will own, and that they will be able to use to bundle their OWN phone/TV/internet with.
The partnerships they have now are just stopgap measures to stay in the game while they get more independant. Verizon switching and stopping selling DirecTV isn't even on DirecTV's radar.

Ricky

[beanpoppa]

It would be ironic- Murdoch decides he wants to bring the DVR service in-house, and Tivo suffers because of it. D* then becomes dependant on tie-ins with the telco's, and then they decide to bring video delivery in-house, and bury D*.

Not a good sign for DirecTV in the long run because Verizon plans to eventually run FIOS all over their coverage range, and when they do that FIOS TV will be the video service they'll be selling. Other telcos can't be too far behind. Bundled billing customers will be extremely easy to poach.

[DesignDawg]

It would be ironic- Murdoch decides he wants to bring the DVR service in-house, and Tivo suffers because of it. D* then becomes dependant on tie-ins with the telco's, and then they decide to bring video delivery in-house, and bury D*.
But it's not going to happen. Do you guys really think you know more about the market/where it's going than DirecTV? You think they're putting all their eggs in Telco's basket?
C o m e O n.

Ricky

[nrc]

But it's not going to happen. Do you guys really think you know more about the market/where it's going than DirecTV? You think they're putting all their eggs in Telco's basket?
C o m e O n.

Ricky

Taking one look at the monster they want me to put on my roof and all the cables they want me to run, I'd have to say, "Yes." :)