# Interesting Article relating to Directv and their plans....



## DCSholtis (Aug 7, 2002)

What's the fuss about DirecTV?


Plans for more local channels and Yankee coverage

By Luisa Beltran, CBS.MarketWatch.com
Last Update: 4:28 PM ET Mar 11, 2003

EL SEGUNDO, Calif. (CBS.MW) -- SBC Chief Executive Ed Whitacre wants DirecTV. Liberty Media's John Malone is also interested. EchoStar's Charlie Ergen tried but was blocked in his attempt. Rupert Murdoch, head of News Corp., spent a year trying to buy it, failed, and is back again.

With such a prominent group of bidders, why does everyone want DirecTV?
    
"It's pretty simple," DirecTV President and Chief Operating Officer Roxanne Austin said in an interview with CBS.MarketWatch.com. "We have built a tremendous enterprise."

El Segundo, Calif.-based DirecTV, the nation's largest satellite TV operator, has over 11 million subscribers. The company has the highest average revenue per user, at $60, in the industry. 

DirecTV is also aggressively going after New York Yankee fans who have grown disgruntled with Cablevision (CVC: news). 

For the past year, Cablevision has refused to broadcast Yankee games through the YES Network, which also airs New Jersey Nets basketball games, because of pricing issues. This spring, Cablevision subscribers who want to see a Yankee game will be watching a blank screen.

DirecTV is offering free two-room systems and free installation to customers in Cablevision zip codes. "The only way to watch the Yankees is through DirecTV," a DirecTV spokesman said Tuesday. Listen to Austin discuss DirecTV's appeal.

The auction

Last year, EchoStar Communications called off its $19 billion takeover of Hughes Electronics, which operates DirecTV, after the government opposed the merger. See full story.

But General Motors (GM: news), parent of Hughes (GMH: news), may finally succeed in selling DirecTV. SBC Communications (SBC: news), the nation's No. 2 phone company, and longtime suitor News Corp. (NWS: news) are in talks to buy the unit. Liberty Media (L: news), which was expected to join Murdoch in a bid, is now considering going it alone.

GM said in early January that it would provide "clarity" within 60 days on its options for Hughes. Last week, GM held a board meeting but no information was readily available Tuesday on the sale. 

"We continue to evaluate our options," a GM spokesman said. 

DirecTV's Austin declined to comment on the Hughes auction. But she doesn't think DirecTV lost ground to EchoStar(DISH: news), which runs the No. 2 satellite TV operator, during the year it was trying to buy Hughes. Some have claimed that EchoStar gained an advantage during that year because it got to peek at DirecTV's books.

"We learned a lot during that process," Austin countered.

During that year, DirecTV realized just how much it needed to improve on costs, specifically in billing. Last year, DirecTV renegotiated a billing contract with a long-term customer that will take effect in the beginning of 2004. The deal will save DirecTV over $50 million a year. 

"We learned a tremendous amount, what we need to do to get our costs down at market level or below," Austin said. 

But DirecTV did not share information with EchoStar about its programming contracts and its marketing strategy, Austin said. 

Austin also nixed speculation that DirecTV may buy Pegasus Communications. Hughes has been in mediation talks with Pegasus (PGTV: news) and National Rural Telecommunications Cooperative over distribution rights. The negotiations have spurred speculation that DirecTV might buy Pegasus as a way to settle the litigation.

But any plans to buy Pegasus are "currently not an option," Austin said. The parties are trying to reach an agreement through mediation and have postponed a hearing until June 3.

Shares of GM lost 76 cents to $29.92 Tuesday, Hughes shed 19 cents to $9.64 and News Corp. lost 46 cents to $22.84. EchoStar fell by 28 cents to $28.50 and Pegasus dropped 46 cents to $14.90. 

SBC lost a penny to $19.34. 

More local

The satellite TV operator also plans to ramp up its offering of local channels, which are dependant on where a customer lives. 

The DirecTV base package, Total Choice Plus, retails at $39.99 and gives users access to over 200 channels, including 130 digital, as well as MTV, ESPN and CNN. 

Austin plans to double DirecTV's local channel market. Currently, DirecTV is in 52 markets, with access to 67 percent of television households, but expects to jump to 100 local channel markets by the end of the year.

The move is contingent on a successful launch of DirecTV's new "Spot Beam Satellite 7S." Launch is set for sometime in the fourth quarter. 

The local channel market is where the growth is, Austin said. The expansion will boosts DirecTV's offerings to cover 84 percent, or 90 million, U.S. households by the end of 2003.

The DirecTV president also threw down a challenge to the cable industry. "With all of our digital services and local channels, we'll go up against any cable company out there," Austin said. 

DirecTV plans to ramp up its partnership with TiVo Inc., the video recording technology provider. The company plans to aggressively deploy its DirecTV digital video recorder with TiVo (TIVO: news) for both new and existing customers. 

The move is expected to add 2.8 million gross customers. About 10 percent will have a DirecTV DVR that boasts TiVo technology. "We would like to be the leader in DVR by the end of 2003," Austin said. 

Shares of TiVo shed 6.3 percent, or 33 cents, to $4.89.


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## James_F (Apr 23, 2002)

Here is a better link.

CBS MarketWatch Article

Interesting Story....

Like the picture of Austin.... Seems like Dish could add a some women to the Charlie Chat and more might watch.


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## DCSholtis (Aug 7, 2002)

WHOAAA.......Hey James your right........now only if they would have her with Tanya Memme monthly on Channel 201.....


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## raj2001 (Nov 2, 2002)

> _Originally posted by DCSholtis _
> *WHOAAA.......Hey James your right........now only if they would have her with Tanya Memme monthly on Channel 201..... *


Yes I agree, she is hot.


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