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Is DIRECTV affected by the economic downturn?

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  • Is DIRECTV affected by the economic downturn?

    Although most people will likely keep some level of service, will the economic downturn adversely affect DIRECTV's bottom line? It's looking as if people are dropping high end products such as HBO, Showtime and Sports packages. This reduction in service is likely to result in DIRECTV's earnings to be lower as customers find ways to conserve cash. This shouldn't affect DIRECTV in the long run, but there are some tough times in the immediate future.

  • #2
    Hard to say. DIRECTV has positioned itself as a higher-end alternative, but in many markets it's still lower cost than cable. Sure, they get a lot of money from advanced services and premium programming, but they're likely to be able to scrape through with the $30/month they get from the average sub.

    In my opinion they have to be vigilant and proactive with subs coming off commitments who would be tempted by a short-term deal from another provider.

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    • #3
      I am fairly certain that I will drop from Premier to a lesser package in the next few months. My monthly bill has exceeded what I swore would be the limit beyond which I would never pay more for a couple of years now. Only a couple of promotions, the AAA discount, and a $10 per month discount for the past year have kept me where I'm at. Once all that stuff goes away, my bill will take a considerable jump in addition to the annual increase. Combined, it will be enough of an impact to warrant making a change. But then I've been saying that for a couple of years now. Actions speak louder than words.

      Edit: I did drop my package from Premier to Choice Plus HD/DVR and kept HBO. Saves about $30 a month.
      Last edited by Carl6; 02-11-2009, 07:01 AM.

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      • #4
        See for me it's the price increase that has done it. I will be switching my package from Premiere at the end of the billing cycle. Quite simply the other package saves me almost $50 a month to start. Includes my HD access charge and my DVR charge. Now I will still sub to Starz and HBO I think but that should still keep my bill lower than it has been. A little saved for me since I watch mostly mainstream shows and movies I will be ok with out it. Also the ST package has to go away. At $279 it has become a luxury I don't want to pay for. I think $250 was my limit on that too.

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