DirecTV offers basic packages to boost growth

[whitewolf8214]

DirecTV offers basic packages to boost growth
By Liana B. Baker and Yinka Adegoke Liana B. Baker And Yinka Adegoke – Thu Dec 2, 6:52 pm ET
NEW YORK (Reuters) – DirecTV Group plans to expand its customer base by offering cheaper TV packages with fewer channels and exploring new ways of bundling Internet access with its satellite TV service, the company's top executive said on Thursday.

Chief Executive Mike White said at the company's investor day in New York that the satellite provider will try to grab market share from its cable rivals by offering fewer channels at a lower price in a pilot program next year in a few markets.

"When you come up with fewer channels, you lower the price you get into a new segment," White said on the sidelines of the conference.

He added that the packages will likely attract customers who are used to paying $30 a month for TV and not the more frugal $15-a-month customers that cable providers are losing.

The plan could be similar to one proposed by Time Warner Cable Inc called 'TV Essentials.' [nN18105375].

As costs rise for carrying cable networks, White said the company might offer "a la carte" sports channels in 2011, meaning consumers can buy one channel at a time, like ordering Fox's The Big Ten Network, instead of an entire sports package.

"We are going to have to look at that in 2011 because sports continues to rise at an unsustainable rate," White said.

The company is also in talks with wireless wholesalers like Clearwire Corp,Harbinger and other companies about trying to strike a deal to provide broadband access to consumers in bundles, possibly under its own wireless brand.

DirecTV is also discussing with movie studios about how to acquire premium video on demand, only a few weeks after movies are released in theaters. He said the movies would probably be priced between $20 to $30. DirecTV said it would reach an agreement on this premium video by next year.

A GROWTH STORY

The leading U.S. satellite television provider expects to add 200,000 net new subscribers in the United States in the current quarter.

The company is on course to have more than 19.1 million subscribers by year-end, closing in on Comcast Corp's shrinking leadership in the U.S. pay-TV sector. Comcast had 22.9 million video customers at the end of the third quarter.

DirecTV expects to have revenue of about $24 billion this year. Analysts' average forecast is $23.9 billion, according to Thomson Reuters I/B/E/S.

The company expects to generate about $3 per share in free cash flow this year and post average revenue per user of $90.

The company said on Thursday it expects to generate $30 billion in revenue and $5-plus per share in three years. It expects see operating profit growth in "low-to-mid" single digits in 2011 and mid-to-upper single digits growth in 2012 to 2013.

The company forecast growth for its Latin American unit, saying it will have 8.7 million subscribers by year-end and revenue of $3.5 billion in 2010.

DirecTV's Chief Financial Officer, Pat Doyle, said the company would continue its aggressive share buyback program, snapping up roughly $100 million in shares per week, or more than $5 billion a year in shares.

Executives said that buying back shares remain the company's focus for the next two years and that paying a dividend to investors "does not make sense" at the moment.

DirecTV, which competes with DISH Network, has grown in recent years by focusing on high-end pay-TV customers and by offering exclusive sports content such as the NFL Football Sunday Ticket.

(Reporting by Yinka Adegoke and Liana B. Baker; editing by John Wallace and Andre Grenon)

 

[JerseyMatt]

I don't know about a la carte, because that has been tried and it never works the way people want it to. They always wind up paying more for less.

But offering movies that are still in theaters? They will absolutely make a killing on that. And when you think about it, at $12 a ticket, $20 (hell even $30) is a friggin STEAL if you have people over to your home theater for movie night. And there's no annoying jerkoffs talking on their Nextels or kids kicking the seat and throwing popcorn at you. I've been waiting for this for a long time. I hate going to the movies (except for IMAX and 3D). I'd much rather watch a movie on my own big screen with the sound set the way I like it with my own popcorn and snacks and I can even have beer! And I KNOW I'm not alone in that mindset.

 

[Juan]

I liked this little gem...

DirecTV is also discussing with movie studios about how to acquire premium video on demand, only a few weeks after movies are released in theaters. He said the movies would probably be priced between $20 to $30. DirecTV said it would reach an agreement on this premium video by next year.

 

[Juan]

I don't know about a la carte, because that has been tried and it never works the way people want it to. They always wind up paying more for less.

But offering movies that are still in theaters? They will absolutely make a killing on that. And when you think about it, at $12 a ticket, $20 (hell even $30) is a friggin STEAL if you have people over to your home theater for movie night. And there's no annoying jerkoffs talking on their Nextels or kids kicking the seat and throwing popcorn at you. I've been waiting for this for a long time. I hate going to the movies (except for IMAX and 3D). I'd much rather watch a movie on my own big screen with the sound set the way I like it with my own popcorn and snacks and I can even have beer! And I KNOW I'm not alone in that mindset.

Not when they currently offer them a bit later at $4.99....Most people won't waste $20

 

[stonecold]

Not when they currently offer them a bit later at $4.99....Most people won't waste $20

You would not waste 20 dollars on that ....

There are plenty of DTV customes who go out to the movies spend in excess of 40 dollars for 2 people by time you get two ticket national aver about 12 bucks a price and then you spend anywhere fro another 12 to 18 dollars on a large popcorn and two drinks.

Now I often dont talk about my personal life but me and my girlfriend go to the movies once a month she loves going ot see new movies neither one of use like the cost of it though . Because honestly it not the movies unless you have some pop corn some mike ikes and soda . We typically spend about 45 dollars on going to the movies. 5 dollars is for a vallet that parks my jeep in a nice parking garage vs trying to find parking dowtown so I rolling that in to the 40 bucks i spend at the theater .

I told her about this and she got excited her first words were if they make it twenty bucks we can go see 2 movies . Personall we would rather sit home in front of out 72 samsung and relax snuggle and kiss which some reason gets frown upon in movie theaters this days .

So as two movie people this would be nice and would be worth the money.


As there plenty of people who are directv customers who go out to the movie theater, that by your logic could wait a bit later and wait them for 4.99 but they dont they go th the movie theater .
DTV just trying to bring the movie theater home to you and it it has actual theaters up in arms about it as they know if people were given the choice they would rather stay home .

 

[n4uaj]

I could see myself doing this every now and again. Especially for some of the movies that I would like to see but balk at the theater prices. We would probably still go see the "blockbusters" at the AMC such as the Harry Potters Ironman and such. I have been called "cheap" because I will talk everyone into going Monday-Thursday @ 7.50 a ticket and share a large popcorn (AMC will give you bags to share) and it is a free refill also : D. So far they wont confiscate my bottle of water I carry in.

 

[Juan]

Stone Cold..Directv will offer tha SAME movie a few weeks later much cheaper..u can fool some of the people all the time...all the people some of the time..but never all of the people all of the time

 

[iceturkee]

and yet, no mention of adding more national hd.

 

[branchbouncer]

You would not waste 20 dollars on that ....

There are plenty of DTV customes who go out to the movies spend in excess of 40 dollars for 2 people by time you get two ticket national aver about 12 bucks a price and then you spend anywhere fro another 12 to 18 dollars on a large popcorn and two drinks.

Now I often dont talk about my personal life but me and my girlfriend go to the movies once a month she loves going ot see new movies neither one of use like the cost of it though . Because honestly it not the movies unless you have some pop corn some mike ikes and soda . We typically spend about 45 dollars on going to the movies. 5 dollars is for a vallet that parks my jeep in a nice parking garage vs trying to find parking dowtown so I rolling that in to the 40 bucks i spend at the theater .

I told her about this and she got excited her first words were if they make it twenty bucks we can go see 2 movies . Personall we would rather sit home in front of out 72 samsung and relax snuggle and kiss which some reason gets frown upon in movie theaters this days .

So as two movie people this would be nice and would be worth the money.


As there plenty of people who are directv customers who go out to the movie theater, that by your logic could wait a bit later and wait them for 4.99 but they dont they go th the movie theater .
DTV just trying to bring the movie theater home to you and it it has actual theaters up in arms about it as they know if people were given the choice they would rather stay home .

Our youngest son wanted to go to Avatar for his birthday last year, for my family of 6, tickets and munchies, drinks. it was 102.00. I later bought the disk for him on Blu-ray, had him watch it on 61 in the media room, asked him which he thought was better, he like getting out for the theater, but liked watching the film more on the 61

 

[DodgerKing]

I don't know about a la carte, because that has been tried and it never works the way people want it to. They always wind up paying more for less.

But offering movies that are still in theaters? They will absolutely make a killing on that. And when you think about it, at $12 a ticket, $20 (hell even $30) is a friggin STEAL if you have people over to your home theater for movie night. And there's no annoying jerkoffs talking on their Nextels or kids kicking the seat and throwing popcorn at you. I've been waiting for this for a long time. I hate going to the movies (except for IMAX and 3D). I'd much rather watch a movie on my own big screen with the sound set the way I like it with my own popcorn and snacks and I can even have beer! And I KNOW I'm not alone in that mindset.

I dissagree. I would never pay $30 to see a movie, even if I had 100 people in my house. Remember, when several people together pay $10 to see a movie at a theater, they all contribute to the cost with each one paying $10. If several people go to your house to see a movie for $30, you are not going to ask them to pay you, so you will be stuck paying the entire $30 bill.

Plus, why would you pay $30 to see a movie once, when you can wait a few weeks and pay less to own the movie for ever or pay $5 to see it on PPV?

I would bet that few people will pay to watch a movie on their own TV when it is still out in the theater

 

[DodgerKing]

You would not waste 20 dollars on that ....

There are plenty of DTV customes who go out to the movies spend in excess of 40 dollars for 2 people by time you get two ticket national aver about 12 bucks a price and then you spend anywhere fro another 12 to 18 dollars on a large popcorn and two drinks.

Now I often dont talk about my personal life but me and my girlfriend go to the movies once a month she loves going ot see new movies neither one of use like the cost of it though . Because honestly it not the movies unless you have some pop corn some mike ikes and soda . We typically spend about 45 dollars on going to the movies. 5 dollars is for a vallet that parks my jeep in a nice parking garage vs trying to find parking dowtown so I rolling that in to the 40 bucks i spend at the theater .

I told her about this and she got excited her first words were if they make it twenty bucks we can go see 2 movies . Personall we would rather sit home in front of out 72 samsung and relax snuggle and kiss which some reason gets frown upon in movie theaters this days .

So as two movie people this would be nice and would be worth the money.


As there plenty of people who are directv customers who go out to the movie theater, that by your logic could wait a bit later and wait them for 4.99 but they dont they go th the movie theater .
DTV just trying to bring the movie theater home to you and it it has actual theaters up in arms about it as they know if people were given the choice they would rather stay home .

I would not even pay $40 for my wife and I to see a movie, when I can spend less to do something more exciting or even more romantic.

We went to the movies last weekend for the first time in 3 years to see, "Due Date" (a "Planes, Trains, and Automobiles" ripoff BTW) and spent less than $20. Matinee and teacher/student discount was $7 a piece (I will never pay full price to sit in a dark room with a bunch of strangers at night), and shared 1 medium bag of popcorn. We brought our own water in

 

[Juan]

Will they let u keep the movie on a hard drive?

 

[DodgerKing]

Will they let u keep the movie on a hard drive?

I doubt it. You cannot keep PPV or VOD movies on HD (you can only keep them for a given amount of time or until you watch it once)

 

[Ronnie-]

Hmm, id probably do that before going to the theater, For the wife and I we would come out much cheaper. I know the last one we saw cost right at $50 after tickets and snacks were added in (a few weeks ago). The two tickets, a medium popcorn, nachos, and two small drinks. And this was mid day.

Not something I would do often, but given the choice, id rather stay home.

 

[DodgerKing]

Hmm, id probably do that before going to the theater, For the wife and I we would come out much cheaper. I know the last one we saw cost right at $50 after tickets and snacks were added in (a few weeks ago).

Not something I would do often, but given the choice, id rather stay home.

As would I, but I would not pay $30 when I can pay $5 a few weeks later (I never do that either ). Plus, we never spend $50 at a theater anyway. Go to a matinee and bring your own snacks, it is much less expensive

 

[Ronnie-]

As would I, but I would not pay $30 when I can pay $5 a few weeks later (I never do that either ). Plus, we never spend $50 at a theater anyway. Go to a matinee and bring your own snacks, it is much less expensive

Like I said, we RARELY go, and the movie we saw was 3d which added a couple of bucks each to the ticket (forgot about that). So call it $40, still higher, and we had to drive there (an hour) and had gas to buy. I do always go to matinees though, have not been to see a movie at night in MANY years.

Theaters around here are VERY strict on bringing your own stuff in.

 

[DodgerKing]

Like I said, we RARELY go, and the movie we saw was 3d which added a couple of bucks each to the ticket (forgot about that). So call it $40, still higher, and we had to drive there (an hour) and had gas to buy. I do always go to matinees though, have not been to see a movie at night in MANY years.

Theaters around here are VERY strict on bringing your own stuff in.

They used to be that way here too. My wife walked in with a cup of coffee and some candy out in plain site and I had two bottles of water in view as well.

 

[n4uaj]

My theater is in a mall so they dont say too much about bringing in a Cinabun or some little something from the food court. At one time they would even let shoppers into the concession area for movie popcorn to munch on as they shop but I havent seen much of that lately.

 

[JamesJ]

keep it on topic folks and watch how we talk to other people.

 

[Bill_KY]

$30 or $40...If they could throw in a discount for the DVD/Blu ray to be used later when it is released. It actually might be a good deal. Would I personally spend that kind of money, no ... But for those with a large family...it could be a really good deal.