DirecTV U.S. wins in Q2, loses TWC lawsuit

Thu, 08/09/2007 - 9:00am
Traci Patterson

The DirecTV Group Inc. reported a 17 percent increase in worldwide revenues year-on-year, to more than $4.1 billion, with U.S. revenues up 12 percent, to $3.7 billion, in the second quarter. The DirecTV Group’s net income of $448 million was down from $459 million a year ago.

U.S. revenues were fueled by average monthly revenue per subscriber (ARPU) growth of 6.8 percent, to $76.43, “due in large part to approximately 50 percent more high-definition and digital video recorder customers in the quarter,” said Chase Carey, DirecTV’s president and CEO.

DirecTV U.S. added 128,000 net subscribers and 900,000 gross subscriber additions in the quarter, for a total of 16.3 million.

"In light of the rapidly growing demand for advanced services in the United States, it is particularly exciting to look ahead a couple of months when we leapfrog the competition by offering up to 100 national HD channels," Carey said.

And today, the U.S. Court of Appeals for the Second Circuit upheld a lower court's decision that prohibits DirecTV from airing ads that claimed superior HD service in markets where Time Warner Cable operates, Reuters reported.
The ads, which featured William Shatner and Jessica Simpson, aired in December and January. They ended with the tag line: "For an HD picture that can't be beat, get DirecTV."

TWC filed the lawsuit in December, saying the DirecTV campaign asserted "false advertising and deceptive business practices," Reuters reported. DirecTV was also ordered to take down similar ads on its Web site or other sites.

Additionally, Carey has signed a new three-year employment contract, effective through Dec. 31, 2010. He joined the company as its president and CEO in 2003.


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