I saw this when I was reading the latest press releases on the D* website. I will paste the link if you wnat to read the whole thing.
Also impacting the quarterly results were higher upgrade and retention costs primarily due to the increased number of customers upgrading to high definition and digital video recorder services, as well as converting to our new MPEG-4 equipment. These high-value subscribers generate the highest ARPU, lowest churn and greatest cash flow for DIRECTV over the long term."
Carey added, "As we head into 2007, we have many reasons to be excited. First, we will launch several new innovative programming services over the coming months such as NASCAR HotPass(TM), the Championship Gaming Series, and DIRECTV On Demand. But perhaps the most important initiative will be the launch of up to 100 national HD channels in the second half of this year following the successful launch of a new satellite. With this added capacity, we expect to offer significantly more HD channels than most of our competitors, providing DIRECTV with a huge advantage in this rapidly growing marketplace." Carey concluded, "We also expect stronger operational performance in 2007 now that we have launched our new set-top boxes, strengthened our sales channels and implemented several key changes to our installation and customer service infrastructure that will drive improved efficiencies and quality. As a result, we're looking for even better results from DIRECTV U.S. in 2007."
http://phx.corporate-ir.net/phoenix.zhtml?c=127160&p=irol-newsArticle&ID=959804&highlight=
Also impacting the quarterly results were higher upgrade and retention costs primarily due to the increased number of customers upgrading to high definition and digital video recorder services, as well as converting to our new MPEG-4 equipment. These high-value subscribers generate the highest ARPU, lowest churn and greatest cash flow for DIRECTV over the long term."
Carey added, "As we head into 2007, we have many reasons to be excited. First, we will launch several new innovative programming services over the coming months such as NASCAR HotPass(TM), the Championship Gaming Series, and DIRECTV On Demand. But perhaps the most important initiative will be the launch of up to 100 national HD channels in the second half of this year following the successful launch of a new satellite. With this added capacity, we expect to offer significantly more HD channels than most of our competitors, providing DIRECTV with a huge advantage in this rapidly growing marketplace." Carey concluded, "We also expect stronger operational performance in 2007 now that we have launched our new set-top boxes, strengthened our sales channels and implemented several key changes to our installation and customer service infrastructure that will drive improved efficiencies and quality. As a result, we're looking for even better results from DIRECTV U.S. in 2007."
http://phx.corporate-ir.net/phoenix.zhtml?c=127160&p=irol-newsArticle&ID=959804&highlight=
