DirecTV Inc. on Thursday reported a fourth-quarter loss after absorbing a hefty merger charge. The nation’s largest satellite TV operator also added 60 percent fewer new subscribers as discounted bundles from competitors and a weak economy took their toll on growth.
DirecTV has benefited from cable companies losing ground in the battle for subscribers. However, it is up against aggressive marketing from fellow satellite TV operator Dish Network Corp. which has offered hefty promotions aimed at stealing away bargain-hunters. Dish says its ads — which claim DirecTV service is more expensive — are bringing in customers. DirecTV is suing Dish for false advertising.
DirecTV still remains one of the brighter lights in the subscription TV industry. It has focused on customers with higher credit scores, and won higher-paying viewers by ramping up the number of high-definition channels and offering its exclusive NFL Sunday Ticket package that airs football games from other cities. Later this year, DirecTV will offer sporting events and movies in 3-D.
Still, the company isn’t immune to the drag of competition that has lured customers with promises of cheaper TV. DirecTV’s cancellation rate rose in the quarter. Read the rest of this entry »

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