DirecTV loses subscribers for 1st time
The company has turned its focus to improving its customer base and has tightened its customer credit standards.
But the company is changing its strategy: It's trying to improve the quality of its subscribers instead of focusing on new subscribers at any cost. It wants customers with better credit who pay more for add-ons like video on demand.
So the company has shifted its focus, and as a result it lost subscribers for the first time. The satellite TV provider said it lost 52,000 subscribers for the quarter ended June 30 to end at 19.9 million. That was more than the 36,000 loss analysts were expecting.
In fact, if it wasn't for Latin America, DirecTV's losses would have been worse. The company added 645,000 new subscribers in the region, higher than the 549,000 analysts were expecting.
The subscriber losses didn't stem from DirecTV's spat with Viacom (VIA), which happened after the June quarter ended. The dispute between the two companies knocked 17 channels off of DirecTV's airwaves for about 10 days in July.
In the June quarter, DirecTV said it tightened its credit standards for customers. It grew its monthly revenue per subscriber to $94.40 from $90.58 a year earlier.
DirecTV's main rival also lost subscribers, but not to the same extent. Dish Network (DISH) lost 10,000 subscribers in the same period, Reuters reports, beating analyst expectations. Time Warner Cable (TWC) said this week it lost 169,000 video subscribers in the same quarter.
Shares of DirecTV fell 2.6% Thursday to close at $48.80. The stock is about where it was a year ago, having recovered from a drop to below $41 last October.
More from Top Stocks
- Just call it 'Fakebook'?
- GM offers financing to subprime buyers
- Green Mountain's roller-coaster ride continues
Direct over billed me the very first month I was with them. I called and called until I spoke with a person they called their top P.R. man. There was no question that they over billed me, basically he told me “tuff luck”. I sent them a copy of the add I responded to and a copy of the contract I signed, they promised to correct the problem. The promise was empty. After 3 months of being over billed I called and told them to stop the service because I refuse to trade with crooks even though they charged me $300 for not fulfilling the contract. That was in the fine print and they charged me even though they did not live up to their written promise. I knew it was not worth the effort to take them to court but I told them that they lost a good customer and many times the money they stole from my debit card. I went to Dish. I just have the basic package and they have never raised our bill in the 3 years we have used their service. I am happy with at least you can trust them to be honest with you. At least that has been our experience.
I only have free tv. Had time warner, direct tv but they always added junk I would never watch and jack the price. Read once that
the normal person watched less than 12 stations so why does anyone have to pay for the other 180 stations. I say pay
for what you use.
I'm a new DirecTV customer and I can tell you one thing: DirecTV needs to improve its customer service. I tried to get a free trial of NFL SUNDAY TICKET removed from my account and they told me that there was no need to remove it because it was "free". Of course, the part that they failed to mention was that it is "free" until they start charging you an extra $59.99. And once the football season starts and they start charging you, you can't cancel until the end of the season. So, the "free" trial will end up costing you about $200. THANKS DIRECTV !!!!!
Gee, I wonder what I am going to do once my 24-month agreement is complete?
"It grew its monthly revenue per subscriber to $94.40 from $90.58 a year earlier."
$94.40/month?! No thanks, I'll stick with my hulu and netflix subscriptions at 8 bucks a piece.
I have been a DirecTV customer for 12 years. They have the best sports airing out there. Last week someone deceided that Hot Pass for Nascar needs to be broadcast in HD. This is $10.00 a month jump to our already $95.00 we pay now. Guess what I am now on a fixed income and what is paid now is all there is. Have to do without now to pay you. If we had been given some notice, maybe. For this to happen in the middle of the Nascar season is cruel and heartless. As a loyal customer, I am not valued customer, therefore what I have to do without is of no consequence to your way over paid exeuctives. Thanks a bunch.
Well, they recently lost our family. We had been with them for a decade. Asked if there were any deals available since our monthly tab was around 200 bucks. They said best they could so was 10 bucks off for six months. See you later.
Recently moved into a new home, I called Directv to have the dish installed that went without a hitch. I had to listen to there high pressure sales representive trying to sell me something I didn't want.
I was offered at no cost the Stars/ Showtime Package free for thirty days, when I received my next billing statement it was not free, they charge me for the first thirty days, after speaking with 3 service reps and getting no where, I was told I couldn't cancel because thirty days hadn't passed when it was suppose to be free, and that if I cancel at that point, there was going to be a $10 charge.
Let them keep on doing this, The Cable and Satelite industry has to change to something the customers wants. It will be there downfall in the future.....People need to start dumping these high pressure companies. We need to start having packages for programming we want, for for overpriced packages they want to shove down our throats.
Directv.....Im outta here when the contract is over..
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.