DirecTV Blames Deadbeats for Churn

[cablewithaview]

After several stellar quarters, DirecTV and EchoStar disappointed the Street in the second quarter by adding fewer customers than expected. The culprit? Higher churn levels. DirecTV, for example, said its heavy subscriber additions recently were in part due to less-than-stringent credit qualifications. That led to large numbers of nonpaying customers and, therefore, many disconnects. Charter faced a similar problem recently, but saw churn drop fractionally in the second quarter after an increased focus on

customer care. For other cable operators, VOD and voice products are proving to be the churn-busters the industry said they would be. In areas where Comcast offers a voice, video and data bundle, for example, 75% to 80% of customers take all three products, and 90% of customers are "very satisfied," according to the company. And very satisfied customers are less likely to turn to the competition.


Churn and Burn: Satellite's Quarterly Churn
Quarterly churn levels for satellite ticked up in the second quarter.
--------2Q '04 1Q '05 2Q '05
DirecTV 1.43% 1.49% 1.69%
EchoStar 1.71% 1.44% 1.69%


Sources: DirecTV and EchoStar

 

[Stargazer]

Higher gasoline and natural gas prices can be blamed for third quarter on. Natural gas prices expected to rise at least 71% this winter sure isn't going to help churn rates. People will do without tv before doing without heat.

 

[ocnier]

Well said.

 

[Neutron]

What Comcast are they talking about?

Lots of pissed off people here with Comcast.

 

[minorthr]

Higher gasoline and natural gas prices can be blamed for third quarter on. Natural gas prices expected to rise at least 71% this winter sure isn't going to help churn rates. People will do without tv before doing without heat.

Where did you hear 71%? I have heard 40% max at 71% I'll add blankets at night when I sleep.

 

[slacker9876]

Perhaps they should also accuse some of the deadbeat PQ that is still out there ... though it has improved!

 

[ram1220]

Where did you hear 71%? I have heard 40% max at 71% I'll add blankets at night when I sleep.

I can't answer for the original poster but I did read 71% in the Dallas Morning News this morning.

Bob