DirecTV plans 'meaningful' rate hike in 2014
DirecTV (Nasdaq: DTV) plans to hike the fees on its subscription packages in 2014, but not higher than the 4.5 percent increase that it took in February, CEO Mike White said earlier this week.
White blamed the hike in subscription fees on increased programming costs, which he said contributed to the net loss of 84,000 subscribers that DirecTV posted in the second quarter. "While [the 2014 price increase] might be not as much, it is still going to be meaningful," White said at the Goldman Sachs Communicopia conference on Wedneday, according to Variety.
Despite subscriber losses, DirecTV has managed to grew revenue through price increases. Its U.S. revenue jumped by $286 million to $5.94 billion in the second quarter, and average monthly revenue per subscriber increased by nearly $4 to $97.73.
DirecTV executives have said previously that the company would be open to sharing rights to the NFL Sunday Ticket package when its contract comes up for renewal next year. But White said he would like to keep the package exclusive to DirecTV as it has been since 1994.
"I'm still optimistic we will still be able to do that. But it's too soon to speculate," White said.
- Variety has this story
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