DirecTV profits up despite slight dip in U.S. subscribers
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DirecTV said Thursday its profits for the second quarter were up 1% to $711 million and revenue increased 9% to $7.2 billion thanks primarily to growth in Latin America, where it added over 600,000 subscribers.
However, in the United States the satellite broadcaster lost about 52,000 subscribers. That is believed to be the first time in the company’s history that it has experienced a dip in subscribers. DirecTV has just under 20 million customers in the U.S.
DirecTV chief executive Mike White has said the company is focused more on retaining its customers and getting them to subscribe to additional services than it is in wooing new subscribers.
However, the company has been running a high-profile ad campaign encouraging consumers to switch from cable to DirecTV including one spot featuring Charlie Sheen. The humorous ads warn people of the evils that can befall them if they don’t subscribe to DirecTV.
In its earnings release, DirecTV attributed some of the subscriber loss to “stricter credit policies.” In other words, no more deadbeats.
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