{"id":20242,"date":"2014-10-05T19:15:47","date_gmt":"2014-10-05T23:15:47","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=20242"},"modified":"2014-12-01T18:11:52","modified_gmt":"2014-12-01T23:11:52","slug":"directv","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2014\/10\/05\/directv\/","title":{"rendered":"DirecTV"},"content":{"rendered":"
by Marla Nixon<\/pre>\n
\"direct<\/a>
DIRECTV logo, Photo courtesy of:\u00a0[1]<\/a>\u00a0www.slashgear.com<\/p><\/div>\n
CONTACT INFORMATION\u00a0<\/strong>[2]<\/a><\/p>\n
2260 E Imperial Hwy<\/p>\n
El Segundo, CA 90245 United States<\/p>\n
(310) 964-5000<\/p>\n
www.directv.com [3]<\/a><\/p>\n
COMPANY OVERVIEW<\/b><\/p>\n
DIRECTV<\/a>\u00a0was founded in 1990 and\u00a0is currently one of the world’s largest digital television services. The company provides services to over 32 million customers in the United States and Latin America (20 million in the United States and 18 million in Latin America). These services include HD, 3D and Video-On-Demand programming. DIRECTV is known for their #1 ranking in customer service as well as their sports programming which includes the NFL Sunday Ticket <\/a>(see below “Deals and Acquisitions” for more details<\/em>)\u00a0[4]<\/a>.<\/p>\n
\u00a0ELECTED OFFICERS\u00a0<\/b>[5]<\/a><\/p>\n
\"Chairman,<\/a>
Michael White, \u00a0<\/em>Chairman, President & CEO, Photo courtesy of: [5]<\/a> www.directv.com<\/p><\/div>\n
Chairman, President & CEO: Michael White<\/a><\/p>\n
Chief Human Resources Officer: Joseph Bosch<\/a><\/p>\n
President, DIRECTV Latin America: Bruce Churchill<\/a><\/p>\n
Chief Financial Officer: Patrick Doyle<\/a><\/p>\n
General Counsel: Larry Hunter<\/a><\/p>\n
Chief Technology Officer: Romulo Pontual<\/a><\/p>\n
Chief Accounting Officer: Steve Adams<\/a><\/p>\n
FINANCIAL SNAPSHOT<\/strong><\/p>\n
DIRECTV<\/a> announced their 2014 3rd Quarter results<\/a> on November 6th, 2014 [6]<\/a>. The results showed a revenue growth of 6%, making their total revenue $8.4 billion. This revenue growth was due to an increase in U.S. ARPU (Average Revenue Per User) and DIRECTV Latin America<\/a>\u00a0(DTVLA) subscriber growth. However, this increase in revenue was offset by a lower ARPU at DTVLA. The lower ARPU at DTVLA was due to unfavorable changes in exchange rates.<\/p>\n
\"6<\/a>
DIRECTV stock quotes from June 2014 to present (6 months), Photo courtesy of:\u00a0[7]<\/a>\u00a0www.money.cnn.com<\/p><\/div>\n
Their current stock price (as of December 1st, 2014) is at $87.37 per share. This price has a year-to-date increase of 26.51% and a three-year increase of 89.69% [7]<\/a>.\u00a0Although financials have shown an increase it is important to note that DIRECTV has sustained subscriber loss in both the United States and Latin America units. This subscriber loss has been attributed to their credit policies and a rise in competition [6]<\/a>\u00a0[8]<\/a>.<\/p>\n
MAIN COMPETITORS<\/b><\/p>\n
DIRECTV <\/a>has three main competitors: Comcast<\/a>, Dish Network<\/a> and Time Warner Cable<\/a>\u00a0[9]<\/a>. Comcast is their biggest competitor ranking number one in the pay-TV market with 22.5 million video subscribers (DIRECTV holds about 20 million video subscribers) [10]<\/a>. There is currently a proposed merger between Comcast and Time Warner Cable (see Tuned In [15]\u00a0<\/i><\/a>and\u00a0The Eyes Have It [16]\u00a0<\/em><\/a>graphics under “Deals and Acquisitions). This merger is still under consideration by the FCC, but if approved will put\u00a0Comcast even further in the lead of the pay-TV market [11]<\/a>.<\/p>\n
DEALS AND ACQUISITIONS\u00a0<\/strong><\/p>\n
On September 1st, 2014, a negotiation dispute between Raycom Media<\/a> and DIRECTV <\/a>caused a 7-day standoff that resulted in a blackout for some DIRECTV subscribers. 43 Raycom stations, including channels with NFL programming, went dark on DIRECTV. The dispute was resolved before the Sunday NFL game and all channels were restored [12]<\/a>.<\/p>\n
\"Wall<\/a>
Displays percentage of the market Comcast and DIRECTV will have if both mergers are approved, Photo courtesy of:[15]<\/a>\u00a0www.wsj.com<\/p><\/div>\n
In May of 2014 AT&T <\/a>announced that it planned on acquiring DIRECTV<\/a> with a $48.5 billion merger. If combined, DIRECTV and AT&T will have more than 26 million subscribers in the United States. This would put DIRECTV ahead of Comcast (22.5 million subscribers as of Fall 2014) in the market for pay-TV. However, if the Comcast and Time Warner Cable merger occurs, DIRECTV would still remain second-largest. Looking at the graphic “The Eyes Have It [16]<\/a>,” <\/em>if the DIRECTV and AT&T merger is made they will have a total of 25.8 million subscribers, unfortunately that number will remain dwarfed by Comcast if the Comcast-Time Warner Cable merger occurs bringing them up to 33.1 million subscribers (note that The Eyes Have It\u00a0<\/em>graphic only shows data up to 2013, data not referencing The Eyes Have It\u00a0<\/em>are current). However, both mergers have yet to be approved by the Federal Communications Commission<\/a> (FCC)\u00a0[13]<\/a>. Both mergers have been under heavy consideration by the FCC because of the massive amount of subscribers each merger affects. If either or both merger are approved the pay-TV market competition will rise dramatically. On September 25th, 2014, DIRECTV stockholders approved the merger with AT&T in a vote that represented 77% of all outstanding shares. The voting results showed that more than 99% of votes casted were in favor of the merger agreement [14]<\/a>.<\/p>\n
\"DIRECTV<\/a>
Current subscribers to DIRECTV, AT&T, Comcast and Time Warner Cable, Photo courtesy of:\u00a0[16]<\/a>\u00a0www.wsj.com<\/p><\/div>\n
To learn more about the AT&T and DIRECTV merger watch a news broadcast here<\/a>. Video courtesy of: [17]<\/a>\u00a0www.wsj.com.\u00a0\u00a0<\/em><\/p>\n
On October 1st, 2014, DIRECTV<\/a> renewed it’s deal with the National Football League (NFL) for the NFL Sunday Ticket<\/a>. The NFL Sunday Ticket includes the showing of all out-of market games (regular season games outside of their local markets) as well as real time stats [18]<\/a>. The NFL Sunday Ticket has been given exclusive rights to DIRECTV and is being extended for 8 years. The price was confirmed at $1.5 billion per season which is a 50% price increase compared to what DIRECTV paid in previous years. DIRECTV produces revenues of about $600 million from the NFL Sunday Ticket with around 2 million subscribers. This revenue is far below what they are now paying for the rights of the NFL Sunday Ticket programming [19]<\/a>. A possible reason for DIRECTV’S agreeing to a dramatically increased price is their proposed merger with AT&T<\/a> (see above paragraph).\u00a0<\/em>If DIRECTV did not renew it’s deal with the NFL for the Sunday Ticket, AT&T was allowed to walk away from the deal without any penalties [19]<\/a> [20]<\/a>.<\/p>\n
In early November, AMC Networks<\/a> threatened to go dark on DIRECTV<\/a> if negotiation standards are not met. With their hit show The Walking Dead\u00a0<\/em>halfway through its season a blackout would be dangerous for DIRECTV business. The contract is set to expire in 2015 and there have been warnings aired on the show that DIRECTV subscribers may not continue to receive programming from AMC\u00a0[21]<\/a>. However, DIRECTV has stated that subscribers will be able to view every episode of the upcoming season of\u00a0The Walking Dead\u00a0<\/em>in a public promise on their website [22]<\/a>.<\/p>\n
DIRECTV <\/a>and Guest-tek<\/a> announced a strategic relationship on November 13th. This relationship expands technology and programming for hotels and guests [23]<\/a>.<\/p>\n
LOOKING FORWARD<\/strong><\/p>\n
DIRECTV<\/a> is now offering 4K Television<\/a>. 4K television, also known as Ultra HD, is the latest HD technology and is called 4K because of the image width (4,000 pixels) [24]<\/a>. DIRECTV is the first and only multi-channel video provider to offer 4K\/Ultra HD TV. To receive DIRECTV 4K programming, subscribers need the DIRECTV Genie HD DVR <\/a>and a DIRECTV 4K ready television. Currently the only DIRECTV 4K ready TV’s are the 2014 Samsung Ultra HD\/4K <\/a>television models [25]<\/a>. The DIRECTV 4K programming was released on November 14th and currently has about 20 movie titles to choose from [26]<\/a>.<\/p>\n
\"kingdomren\"<\/a>
Photo courtesy of: [27]<\/a> www.seriable.com<\/p><\/div>DIRECTV<\/a> has also been creating some of their own content programming since 2013. Most recently, a new drama\u00a0called “Kingdom”<\/a> starring Jonathan Tucker and Nick Jonas has had a 20-episode renewal a week after its premiere. The show is about a mixed Martial Arts group living in Venice, CA. “Kingdom” has been their most-watched series on their Audience Network [28]<\/a>. The DIRECTV Audience Network is devoted to their original programming [29]<\/a>.<\/p>\n
Watch the Kingdom series trailer here<\/a>. Video courtesy of: [30]<\/a> www.youtube.com.<\/em><\/p>\n
SOURCES<\/strong><\/p>\n
\u00a01. DIRECTV’s Logo<\/a>, www.slashgear.com, RT: 11\/29\/2014<\/p>\n
2. Contact Information<\/a>, www.hoovers.com, RT: 11\/29\/2014<\/p>\n
3. DIRECTTV’s Website<\/a>, www.directv.com, RT: 11\/29\/2014<\/p>\n
4. “Our Company”<\/a>, www.directv.com, RT: 11\/30\/2014<\/p>\n
5. Elected Officers<\/a>, investor.directv.com, RT: 11\/28\/2014<\/p>\n
6. 2014 3rd Quarter Results<\/a>, investor.directv.com, RT: 11\/30\/2014<\/p>\n
7. DIRECTV Stock Quotes<\/a>, www.money.cnn.com, RT:11\/30\/2014<\/p>\n
8. “Tighter Credit, Competition Pressure DirecTV,”<\/a> www.multichannel.com, RT: 11\/30\/2014<\/p>\n
9. Competitors<\/a>, www.hoovers.com, RT: 11\/30\/2014<\/p>\n
10. Comcast Vs. DIRECTV<\/a>, www.fool.com\/investing, RT: 11\/30\/2014<\/p>\n
11. Comcast and TimeWarner Merger<\/a>, www.wsj.com, RT: 11\/30\/2014<\/p>\n
12. “DirecTV, Raycom Media Blackout Ends Just in Time for NFL Games,”<\/a> www.variety.com RT: 11\/30\/2014<\/p>\n
13. “What Investors Need to Know About the AT&T-DirecTV Merger,”<\/a> www.fool.com\/investing, RT: 11\/30\/2014<\/p>\n
14. DIRECTV Stockholders Approve Merger with AT&T<\/a>, www.investor.directv.com, RT: 11\/30\/2014<\/p>\n
15. “Comcast, TWC Blast Critics of Merger,”<\/a> www.wsj.com, RT: 11\/30\/2014<\/p>\n
16. “AT&T Has Approached DIRECTV About Possible Acquisition,”<\/a> www.wsj.com, RT: 12\/1\/2014<\/p>\n
17. Wall Street Journal Video<\/a>, www.wsj.com, RT:12\/1\/2014<\/p>\n
18. DIRECTV NFL Sunday Ticket<\/a>, www.directv.com, RT: 11\/30\/2014<\/p>\n
19. “DIRECTV Extends Its Deal With NFL For $12 Billion,”<\/a> www.trefis.com, RT:11\/30\/2014<\/p>\n
20. “CMO Today: NFL Sticks with DIRECTV for Sunday Ticket,”<\/a> www.wsj.com, RT: 11\/30\/2014<\/p>\n
21. “AMC Holds The Walking Dead Ransom In Dispute With DIRECTV,”<\/a> www.digitaltrends.com, RT: 12\/1\/2014<\/p>\n
22. DIRECTV Promise<\/a>, www.directvpromise.com, RT:12\/1\/2014<\/p>\n
23. DIRECTV and Guest-tek Strategic Relationship<\/a>, www.guestek.com, RT: 12\/1\/2014<\/p>\n
24. “4K TV and Ultra HD: Everything you need to know,”<\/a> www.techradar.com, RT: 12\/1\/2014<\/p>\n
25. “What is a DIRECTV 4K Ready TV and how does it work?”<\/a> www.support.directv.com, RT: 12\/1\/2014<\/p>\n
26. DIRECTV 4K TV Press Release<\/a>, www.investor.directv.com, RT: 12\/1\/2014<\/p>\n
27. Kingdom Photo<\/a>, www.seriable.com, RT: 12\/1\/2014<\/p>\n
28. “DIRECTV Orders 20 More Episodes of Original Drama ‘Kingdom,'”<\/a> www.variety.com, RT: 12\/1\/2014<\/p>\n
29. DIRECTV Audience Network<\/a>, www.directv.com, RT: 12\/1\/2014<\/p>\n
30. Kingdom Trailer<\/a>, www.youtube.com, RT: 12\/1\/2014<\/p>\n","protected":false},"excerpt":{"rendered":"
by Marla Nixon CONTACT INFORMATION\u00a0[2] 2260 E Imperial Hwy El Segundo, CA 90245 United States (310) 964-5000 www.directv.com [3] COMPANY OVERVIEW DIRECTV\u00a0was founded in 1990 and\u00a0is currently one of the world’s largest digital television services. The company provides services to … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":397,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3062,3064],"tags":[2348,170,3827,4025,713,2946,3786,3593,965,536,282,279,3590,4183,3595,3828,3591,4181,3592,3489,149,3589,3787,1400,3680,3638,4169,3594,3596,992,745,4022,4182,4026,4184,1949,3040,3785,1611,98,720,1654,4024,4023,1623,2091],"_links":{"self":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/20242"}],"collection":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/users\/397"}],"replies":[{"embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/comments?post=20242"}],"version-history":[{"count":87,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/20242\/revisions"}],"predecessor-version":[{"id":23887,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/20242\/revisions\/23887"}],"wp:attachment":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/media?parent=20242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/categories?post=20242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/tags?post=20242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}