DirecTV shifting its focus to higher-end customers


Staff member
This is exactly why I canceled DirecTV last year. They're forcing their higher cost on their customers and in turn shifting their focus to higher-end services.

1. It's gone after higher-credit-quality consumers. According to The Wall Street Journal, "Consumers with weak credit scores have to pay an upfront deposit of $200-$300 to sign up for the satellite service, which dissuades many. The end result: DirecTV's average revenue per subscriber is higher than most rivals, in video, and it has faced less defections in tough economic times."

2. It requires a multi-year commitment from those customers. New subscribers are initially locked in for two years.

3. It's increased its average-revenue-per-subscriber figure by giving consumers enticing bundling packages (e.g., the NFL Sunday Ticket or NBA League Pass), innovative products (e.g., the Whole Home DVR system), and exclusive content (e.g., its 101 Network is where subscribers can watch acclaimed shows Friday Night Lights and Damages free of commercials). (Full disclosure: I'm a DirecTV subscriber, but not a shareholder.)
2 Things You Should Know About DirecTV - Business - Motley Fool -
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