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DirecTV Loses 56,000 Subs in Q2

2 Aug, 2012 By: Erik Gruenwedel

In a switch, DirecTV lost 56,000 domestic net subscribers in the second quarter, which ended June 30, compared with a gain of 26,000 net subs during the previous-year period.

The El Segundo, Calif.-based No. 1 satellite TV operator, unlike most cable operators, has generated consisted subscriber gains over the past several years due in large part to aggressive marketing and discounted programming bundles.

It ended the period with more than 19.9 million subs, compared with 19.4 million subs last year. The decline underscored a slowing trend in sub growth, which holds at 29,000 net additions through the first six months of the year, compared with 210,000 net additions through the same period last year.

Major rival Dish Network recently revealed it lost 10,000 net subscribers during the second quarter.

Meanwhile, average revenue per subscriber (ARPU) grew 4.2% to $94.40 from $90.58 last year. ARPU increased mostly due to price increases on programming packages, higher advanced service fees, pay-per-view revenue and penetration of premium channels, partially offset by increased promotional offers to new and existing customers.

By comparison, DirecTV Latin America gained 645,000 subs in Q2 compared to 472,000 subs last year. The satellite TV operator’s South American unit ended the period with more than 9.1 million subscribers, compared with 6.7 million subs last year.

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