Skip to main content

DIRECTV Targeting Consumer Big Spenders

Kagan Research reports that Rupert Murdoch's overhaul of DIRECTV is now being put to the test. And the verdict is -- so far, so good.

The $12.2 billion-revenue DTH platform with 15.1 million U.S. subscribers expects a package of enhanced services will more than double to a lofty 47+ percent penetration rate of its subs by end 2007.

The enhanced services include high definition (DIRECTV aims to offer local HDTV channels to 76 percent of the U.S. by end 2006) and digital video recorders. DIRECTV told an investors' conference last month its goal is to corral more of the 33 percent of top-tier customers who represent 63 percent of profit potential.

"DIRECTV is foregoing some growth to get more high quality subscribers," says Kagan Research associate analyst Christy Rickard. That strategy is designed to raise average revenue per unit (ARPU), reduce subscriber churn and hold the line on subscriber acquisition costs (SAC).

Murdoch's News Corp. acquired a controlling 34 percent stake in DIRECTV's parent in late 2003, and is applying its expertise gleaned from operating other DTH platforms: BSkyB in the UK, STAR TV across Asia and Sky Italia.

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...