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New technology lets cable offer goodies DirecTV can't -- and customers are noticing
For Rupert Murdoch, gaining control of DirecTV was supposed to be the hardest part. When he finally won a 34% stake in the satellite operator in late 2003, the man considered by many to be the most powerful media executive in the world had finally closed the loop on his satellite empire. Now he would be able to offer cut-rate prices, provide cool services, and leverage his vast collection of movies, TV shows, and news to lure new subscribers. Murdoch put in charge 51-year-old Chase Carey, a former college rugby player with a handlebar mustache, to execute his plans to dominate programming and distribution. In Carey's two years as CEO of DirecTV Group Inc. (DTV ), the gruff-talking exec has delivered, siphoning off 2 million customers from rival cable operators, bringing DirecTV's total to 15 million.
What Murdoch didn't account for, however, was that in that same period the media world would be reordered by technology. Today his bid so quickly to make DirecTV No. 1 isn't looking like a cakewalk after all. For one thing, DirecTV has had problems sustaining the growth that made it a powerhouse rival in the first place. In the past six months it has added just over half as many subscribers as it did in 2004. And it pays a steep $626, on average, in promotions alone to win a new subscriber. That comes to about 75% of what that customer will pay in fees the first year. Moreover, DirecTV's churn rate -- the number of folks who cancel their subscriptions -- has risen to what Carey calls an "unacceptably high" level.
Meanwhile, competition from cable has stiffened, and phone companies are joining the fray, too. After spending nearly $100 billion in the past decade to lay high-speed fiber-optic lines, cable outfits are rolling out services such as Web access, video-on-demand (VOD), and Internet phone calling, helping to keep subscribers from jumping ship. Time Warner Inc. (TWX ) and Cablevision Systems Corp. (CVC ) say they're adding new customers by bundling these services and even offering discounts -- undercutting satellite's long-held price advantage.
RESHAPED LANDSCAPE
The problem at the heart of DIRECTV's model is that it can't yet offer the two-way technologies that are so hot now -- from Voice over Internet Protocol to VOD. Satellite's one-way feed can send shows to TVs, but there's no path back to the satellite, making its pay-per-view offerings much less popular since they start at scheduled times. Plus, cable is a more attractive platform for ads because it can target spots to specific neighborhoods. "Last year satellite had all the advantages. Now cable has attacked them on just about every one," says Craig E. Moffett, an analyst at Sanford C. Bernstein & Co.
Looming but still a bit distant are threats from phone giants Verizon Communications Inc. (VZ ) and SBC Communications Inc. (SBC ), which are gearing up to offer programming services. With its first trial under way in Keller, Tex., Verizon is offering a full menu of TV channels, part of a bundle with its own high-speed Internet services.
Murdoch, who doesn't take being No. 2 lightly, isn't blinking. DirecTV blames much of its slowdown in subscriber growth on an effort to weed out poor-paying customers. Even though it earned $215 million in the first three quarters of this year and its revenues increased 20% on higher rates, to $9.6 billion, DirecTV faces major expenses in the next year to keep pace with cable. It is already spending more than $1 billion to launch satellites to offer local channels in high definition. And advertising expenses for this year could top $200 million, a 30% jump over last year, estimates Merrill Lynch & Co. (MER ). Numbers like those have turned investors sour: DirecTV's stock is down 18% in the past year, to about $14.
Meanwhile, cable is just warming up. On Nov. 2, three of the largest operators signed a deal with Sprint Nextel Corp. (S ) to offer wireless phone service, enabling them to package yet another goodie into their promotions. Others are rushing to offer VOD, joining giant Comcast Corp. (CMCSA ), which offers a library of more than 4,000 TV show and movies, most of them for free. Despite losing customers in its most recent quarter, Comcast claims VOD and other services have helped it lure back so far this year 300,000 former customers who had defected to satellite. One market for other cable operators to emulate is Southern California. Cox Cable has signed up a third of its customers in San Diego and Orange County for TV, Internet, and phone service, leaving satellite's penetration in the area at just 14% of households, vs. a national average of 20%.
These new threats are reenergizing Rupert's crew. Using a key weapon -- its exclusive deal to offer every Sunday National Football League game -- it's marketing a screen with eight games playing simultaneously. To battle cable further, DirecTV will soon offer its own, slimmed-down version of VOD with 100 or so recent movies loaded ahead of time into a customer's set-top box. DirecTV has also announced that it will make some of NBC's hit shows, such as Law & Order, available for a fee on VOD. Still, "to me VOD is a lot of hype," says Carey. "The cable guys offer a lot of second-tier bulk. We're going to offer the ones that [customers] want."
DirecTV is looking for new partners to match cable's Internet and cell-phone services. That would be taking a page from Murdoch's playbook in Europe. News Corp.'s (NWS ) 37%-controlled British Sky Broadcasting Group (BSY ) satellite service recently paid $363 million to buy Internet service provider Easynet Group and said it will offer wireless phone service via Vodafone Group (VOD ).
Of course, DirecTV is still a huge jewel for Murdoch. Its mass audience, second only to Comcast's 22 million subscribers, is crucial to the mogul's ambitions to expand his Fox TV brand. He wants to use DirecTV to create a new cable outlet a year, such as the recent Fox Reality channel launched on the service, and as leverage to press cable operators to pay more for his existing channels.
But Carey knows that technology can be a game changer. "I don't think anyone is standing still," he says of the competitive landscape between cable and satellite. "They've moved forward, and so have we. We're not done."
http://www.businessweek.com/magazine/content/05_49/b3962090.htm?campaign_id=rss_tech
For Rupert Murdoch, gaining control of DirecTV was supposed to be the hardest part. When he finally won a 34% stake in the satellite operator in late 2003, the man considered by many to be the most powerful media executive in the world had finally closed the loop on his satellite empire. Now he would be able to offer cut-rate prices, provide cool services, and leverage his vast collection of movies, TV shows, and news to lure new subscribers. Murdoch put in charge 51-year-old Chase Carey, a former college rugby player with a handlebar mustache, to execute his plans to dominate programming and distribution. In Carey's two years as CEO of DirecTV Group Inc. (DTV ), the gruff-talking exec has delivered, siphoning off 2 million customers from rival cable operators, bringing DirecTV's total to 15 million.
What Murdoch didn't account for, however, was that in that same period the media world would be reordered by technology. Today his bid so quickly to make DirecTV No. 1 isn't looking like a cakewalk after all. For one thing, DirecTV has had problems sustaining the growth that made it a powerhouse rival in the first place. In the past six months it has added just over half as many subscribers as it did in 2004. And it pays a steep $626, on average, in promotions alone to win a new subscriber. That comes to about 75% of what that customer will pay in fees the first year. Moreover, DirecTV's churn rate -- the number of folks who cancel their subscriptions -- has risen to what Carey calls an "unacceptably high" level.
Meanwhile, competition from cable has stiffened, and phone companies are joining the fray, too. After spending nearly $100 billion in the past decade to lay high-speed fiber-optic lines, cable outfits are rolling out services such as Web access, video-on-demand (VOD), and Internet phone calling, helping to keep subscribers from jumping ship. Time Warner Inc. (TWX ) and Cablevision Systems Corp. (CVC ) say they're adding new customers by bundling these services and even offering discounts -- undercutting satellite's long-held price advantage.
RESHAPED LANDSCAPE
The problem at the heart of DIRECTV's model is that it can't yet offer the two-way technologies that are so hot now -- from Voice over Internet Protocol to VOD. Satellite's one-way feed can send shows to TVs, but there's no path back to the satellite, making its pay-per-view offerings much less popular since they start at scheduled times. Plus, cable is a more attractive platform for ads because it can target spots to specific neighborhoods. "Last year satellite had all the advantages. Now cable has attacked them on just about every one," says Craig E. Moffett, an analyst at Sanford C. Bernstein & Co.
Looming but still a bit distant are threats from phone giants Verizon Communications Inc. (VZ ) and SBC Communications Inc. (SBC ), which are gearing up to offer programming services. With its first trial under way in Keller, Tex., Verizon is offering a full menu of TV channels, part of a bundle with its own high-speed Internet services.
Murdoch, who doesn't take being No. 2 lightly, isn't blinking. DirecTV blames much of its slowdown in subscriber growth on an effort to weed out poor-paying customers. Even though it earned $215 million in the first three quarters of this year and its revenues increased 20% on higher rates, to $9.6 billion, DirecTV faces major expenses in the next year to keep pace with cable. It is already spending more than $1 billion to launch satellites to offer local channels in high definition. And advertising expenses for this year could top $200 million, a 30% jump over last year, estimates Merrill Lynch & Co. (MER ). Numbers like those have turned investors sour: DirecTV's stock is down 18% in the past year, to about $14.
Meanwhile, cable is just warming up. On Nov. 2, three of the largest operators signed a deal with Sprint Nextel Corp. (S ) to offer wireless phone service, enabling them to package yet another goodie into their promotions. Others are rushing to offer VOD, joining giant Comcast Corp. (CMCSA ), which offers a library of more than 4,000 TV show and movies, most of them for free. Despite losing customers in its most recent quarter, Comcast claims VOD and other services have helped it lure back so far this year 300,000 former customers who had defected to satellite. One market for other cable operators to emulate is Southern California. Cox Cable has signed up a third of its customers in San Diego and Orange County for TV, Internet, and phone service, leaving satellite's penetration in the area at just 14% of households, vs. a national average of 20%.
These new threats are reenergizing Rupert's crew. Using a key weapon -- its exclusive deal to offer every Sunday National Football League game -- it's marketing a screen with eight games playing simultaneously. To battle cable further, DirecTV will soon offer its own, slimmed-down version of VOD with 100 or so recent movies loaded ahead of time into a customer's set-top box. DirecTV has also announced that it will make some of NBC's hit shows, such as Law & Order, available for a fee on VOD. Still, "to me VOD is a lot of hype," says Carey. "The cable guys offer a lot of second-tier bulk. We're going to offer the ones that [customers] want."
DirecTV is looking for new partners to match cable's Internet and cell-phone services. That would be taking a page from Murdoch's playbook in Europe. News Corp.'s (NWS ) 37%-controlled British Sky Broadcasting Group (BSY ) satellite service recently paid $363 million to buy Internet service provider Easynet Group and said it will offer wireless phone service via Vodafone Group (VOD ).
Of course, DirecTV is still a huge jewel for Murdoch. Its mass audience, second only to Comcast's 22 million subscribers, is crucial to the mogul's ambitions to expand his Fox TV brand. He wants to use DirecTV to create a new cable outlet a year, such as the recent Fox Reality channel launched on the service, and as leverage to press cable operators to pay more for his existing channels.
But Carey knows that technology can be a game changer. "I don't think anyone is standing still," he says of the competitive landscape between cable and satellite. "They've moved forward, and so have we. We're not done."
http://www.businessweek.com/magazine/content/05_49/b3962090.htm?campaign_id=rss_tech
19 Replies
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3297 views
IS Amiko MIRA 3 any good ???
Can you recommend the best to cover all bases. NO BEEPS on certain channels 101w (NEWSMAX ,NEWS NATION), a clock that keeps working STEADY for timed recording ,solid unit with good lifespan. My Amiko died AND my Linkbox has NO Favorites Button and BEEPS on many channels. Picking up 105 west with a NEW SHED IN THE Way with 6 foot Cband ..95 percent quality ...unbelievable.
Can you recommend the best to cover all bases. NO BEEPS on certain channels 101w (NEWSMAX ,NEWS NATION), a clock that keeps working STEADY for timed recording ,solid unit with good lifespan. My Amiko died AND my Linkbox has NO Favorites Button and BEEPS on many channels. Picking up 105 west with a NEW SHED IN THE Way with 6 foot Cband ..95 percent quality ...unbelievable.
3 Replies
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63 views
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Didn't see a thread like this so I figured why not start one. This is about natural supplements. If you aren't into supplements, fine, but please let those of us who do want to discuss this discuss it.
The first one I wanted to mention has been a real life changer. I'm 62 and still do all of my own install work at my business....also do all the yard work at the house. A few years ago I started noticing that I was losing my range of movement, it was even getting hard to bend over and lace up my boots. Almost got stuck in an attic because I couldn't get turned around once the work was done. Didn't think much of it and figured with age comes stiffness that was only going to get worse as time went on.
It was then that I stumbled across a video which was discussing rotator cuff tears and why they were to prevalent these days. Turns out, the culprit is a simple deficiency in MANGANESE which is key in keeping your tendons flexible. Most anti-biotics strip your body of any manganese it might have had which is why certain anti-biotics, especially those in the Cipro family. I actually knew a man who had two tendons tear while on that stuff.
Went to Amazon and ordered some manganese. Now it took a while, it wasn't instant, but gradually I have regained all of my flexibility. I can bend over and touch my toes while standing with no pain and putting on my boots is no longer a chore.
Pretty cheap too. The bottle I ordered was a 200 ct for under $13. They said to take double the normal dose for the first month because most people are severely lacking, then go to one a day.
The first one I wanted to mention has been a real life changer. I'm 62 and still do all of my own install work at my business....also do all the yard work at the house. A few years ago I started noticing that I was losing my range of movement, it was even getting hard to bend over and lace up my boots. Almost got stuck in an attic because I couldn't get turned around once the work was done. Didn't think much of it and figured with age comes stiffness that was only going to get worse as time went on.
It was then that I stumbled across a video which was discussing rotator cuff tears and why they were to prevalent these days. Turns out, the culprit is a simple deficiency in MANGANESE which is key in keeping your tendons flexible. Most anti-biotics strip your body of any manganese it might have had which is why certain anti-biotics, especially those in the Cipro family. I actually knew a man who had two tendons tear while on that stuff.
Went to Amazon and ordered some manganese. Now it took a while, it wasn't instant, but gradually I have regained all of my flexibility. I can bend over and touch my toes while standing with no pain and putting on my boots is no longer a chore.
Pretty cheap too. The bottle I ordered was a 200 ct for under $13. They said to take double the normal dose for the first month because most people are severely lacking, then go to one a day.
4 Replies
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42 views
TWiT Tech Podcast Network
Time for another AWESOME video from the TWIT Network!
View: https://www.youtube.com/shorts/5-kh3ZIy2yc
Direct YouTube Link - Larry Ellison's Debt-Fueled Media Bet: Could It Spark a Crash? #shorts
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View: https://www.youtube.com/shorts/5-kh3ZIy2yc
Direct YouTube Link - Larry Ellison's Debt-Fueled Media Bet: Could It Spark a Crash? #shorts
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I've always been super interested in things space related so this is a pretty cool event coming up. Nov 18, 2026 early in the morning, Voyager 1 will reach the distance of one full light day from Earth. Took almost 50 yrs. I was 13 when it launched.
View: https://www.youtube.com/shorts/gjHK3clOwIw?feature=share
View: https://www.youtube.com/shorts/gjHK3clOwIw?feature=share
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126 views
Thanks for that info. I will mark it on my calendar!
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Can't help but wonder if a worker overlooked checking the harness. I rarely ride a roller coaster anymore but when I do I check the harness myself pretty aggressively.
Can't imagine what the son is going through.
www.dailymail.com
Can't imagine what the son is going through.
Dad levitated and bled then fell to his death from coaster
Eyewitnesses have shared fresh details of the horrific accident that happened at Six Flags Over Georgia on Monday afternoon.
26 Replies
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369 views
Could B&M’s Patent on the “Clamshell” Ride Restraint Design Offer Clues as to What Happened on Goliath at Six Flags Over Georgia?
Incredibly sad news out of Six Flags Over Georgia as it’s being reported one man was killed after being ejected from Goliath, the B&M hyper coaster. Many news outlets have posted pictures of pe…
bgtsafari.com
Had no idea there were that many redundancies built into those restraints.Could B&M’s Patent on the “Clamshell” Ride Restraint Design Offer Clues as to What Happened on Goliath at Six Flags Over Georgia?
Incredibly sad news out of Six Flags Over Georgia as it’s being reported one man was killed after being ejected from Goliath, the B&M hyper coaster. Many news outlets have posted pictures of pe…
It makes sense, however, I would want more types of restraints, so if one doesn't work, the other does ... the restraints coming over the shoulder I would have expected ... with a Seat belt as last resort.
Fwiw, I inquired with what they use on Coasters at Cedar Point, various Coasters, different restraints according to what the car and track requires ...
NONE of the Coasters at CP use THAT particular system
I'm glad to see ...
UPDATE: Six Flags is adding seatbelts to all 9 rollercoasters
www.dailymail.com
Six Flags adds important safety feature after teacher died
Hassan Kariem, 42, was killed at the theme park in Austell earlier this month, after he was thrown from his seat on the Goliath rollercoaster. Four others were injured.
Finally ....UPDATE: Six Flags is adding seatbelts to all 9 rollercoasters
Six Flags adds important safety feature after teacher died
Hassan Kariem, 42, was killed at the theme park in Austell earlier this month, after he was thrown from his seat on the Goliath rollercoaster. Four others were injured.
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Cutting Edge
Sometimes a thread gets so many posts in it that is can cause issues for the server so that why today we introduce The Song Name Game Part 3!
So let the game continue!
The last song was added by Bobby who posted...
One Meat Ball - Andrews Sisters
CONTINUE ON AND HAVE FUN! WELCOME HOME TO SATELLITEGUYS.US!
Here are the original rules for the game as posted by WebbyDude back in 2006. http://www.satelliteguys.us/threads/68645-Song-Name-Game
Just name a song title and the band who performed it. The next person does the same thing, but needs to list a song title or band name which includes a word from the previous entry. Pick songs from any genre.
Example:
Long Live Rock and Roll -- Rainbow
Rainbow in the Dark -- Dio
Another example:
Ride the Lightning -- Metallica
Lightning Strikes -- Ozzy Osbourne
Get it?
An additional note: we all know that song titles, sometimes, use profane words. Because this is a family friendly website it is advised that you clean up that title up a bit. This is accomplished by using something like sh!t instead of the real word. Thanks....
So let the game continue!
The last song was added by Bobby who posted...
One Meat Ball - Andrews Sisters
CONTINUE ON AND HAVE FUN! WELCOME HOME TO SATELLITEGUYS.US!
Here are the original rules for the game as posted by WebbyDude back in 2006. http://www.satelliteguys.us/threads/68645-Song-Name-Game
Just name a song title and the band who performed it. The next person does the same thing, but needs to list a song title or band name which includes a word from the previous entry. Pick songs from any genre.
Example:
Long Live Rock and Roll -- Rainbow
Rainbow in the Dark -- Dio
Another example:
Ride the Lightning -- Metallica
Lightning Strikes -- Ozzy Osbourne
Get it?
An additional note: we all know that song titles, sometimes, use profane words. Because this is a family friendly website it is advised that you clean up that title up a bit. This is accomplished by using something like sh!t instead of the real word. Thanks....
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I'm surprised Walmart hasn't banned this guy from all of their stores. He has been on their CASE the past few months.
View: https://www.youtube.com/shorts/f3zr37ekgKM?feature=share
View: https://www.youtube.com/shorts/f3zr37ekgKM?feature=share
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693 views
Unless the specific product or its packaging is known at the time of weighing, estimating the tare weight for a PoS system is a tall order.
I'm pretty sure that produce bags can't get any thinner.
You certainly don't want to put unbagged produce on a belt, scale, or in a clerk's hands (gloved or not).
I would think that all the packaging would already be accounted for ... they weigh the container, subtract that from the scale, then add the product , so its weighing the Product onlyUnless the specific product or its packaging is known at the time of weighing, estimating the tare weight for a PoS system is a tall order.
I'm pretty sure that produce bags can't get any thinner.
You certainly don't want to put unbagged produce on a belt, scale, or in a clerk's hands (gloved or not).
Lon.TV
Time for another AWESOME video from Lon Seidman of LON.TV!
View: https://www.youtube.com/watch?v=hvZO7aWrIQU
Direct YouTube Link - This 32GB AMD GPU Runs AI Text, Images AND Video
The Official LON.TV Website
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View: https://www.youtube.com/watch?v=hvZO7aWrIQU
Direct YouTube Link - This 32GB AMD GPU Runs AI Text, Images AND Video
The Official LON.TV Website
Lon on Facebook
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5 views
TWiT Tech Podcast Network
Time for another AWESOME video from the TWIT Network!
View: https://www.youtube.com/watch?v=b1hqdVSueHk
Direct YouTube Link - Untitled Linux Show 276
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View: https://www.youtube.com/watch?v=b1hqdVSueHk
Direct YouTube Link - Untitled Linux Show 276
TWIT's Website
TWIT Live Feed
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5 views
Pub Member / Supporter
America’s Fastest-Growing EV State Isn’t California—Not by a Long Shot
New data shows electric vehicle adoption is increasingly driven by state policies, electricity prices and charging access—not federal incentives
www.autoweek.com
The number-one US state for EV growth, according to the June 22 Yardi report?
Oklahoma.
It has no ZEV mandates and "minimal" incentives, Yardi says, but also has cheap electricity, high multi-car household rates (so, for example, a non-Lightning Ford F-150 pulls their trailers), and a consumer base willing to switch.
114 Replies
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1010 views
US EV sales are rising again. Here’s why the recovery is set to last.
Even though sales tanked last year after the end of federal incentives, the American EV sector is on the mend as drivers face sky-high gasoline prices.
www.canarymedia.com
GM Is Coming for Tesla, Rivian, and China, on Your Phone and in the Car
GM’s latest tech preview details autonomous highway driving plans, AI-powered OnStar features, and new LMR batteries for future EVs.
GM said its next-generation vehicle architecture will provide 40 times more computing power and 30 percent less wiring than before and will expand from the 2028 Cadillac Escalade IQ to its high-volume SUVs, trucks, crossovers, and fourth-generation EVs, which will be powered by lithium manganese-rich (LMR) prismatic batteries
Despite the politicization and perceived consumer pivot away from EVs in America, GM needs to remain globally competitive, so it's doubling down on its fourth generation EVs, with energy-dense, cheaper-to-manufacture LMR batteries, more efficient motors, and state-of-the-art centralized computing architecture. With a stated goal of cutting the traditional four- to five-year concept-to-production time in half, GM is clearly challenging the concept of "China speed," which in the Chinese automotive industry can be as quick as 18 months from design to start of production. In the AI space, GM is smartly collapsing all of its marque-specific apps under the familiar OnStar brand, while providing more features—both on the phone and in the car—than it ever has before.