DirecTV subscriber growth slows in Q4

DirecTV (Nasdaq: DTV) picked up just 125,000 net new subscribers during the fourth quarter, down significantly from the third quarter, when it added 328,000 new subscribers. Subscriber growth at the top satellite TV provider was also down compared to the fourth quarter of 2010, when it added 289,000 subscribers.

Much of the subscriber growth DirecTV saw in Q3, which was its best period in five years, was related to promotions related to its exclusive NFL Sunday Ticket package. Its fourth quarter results demonstrate the challenges DirecTV faces in marketing its service without discounts tied to football programming. Comcast (Nasdaq: CMCSA) and other rivals have also increased their own marketing spending to battle DirecTV, with Comcast reporting Tuesday that it lost just 17,000 basic video customers during Q4.

DirecTV ended 2011 with 19.89 million U.S. subscribers, picking up 662,000 net subscriber additions. That was a decrease of just 1,000 compared to 2010. Also worth noting form DirecTV's Q4 earnings:

• DirecTV generated $101.38 million in average monthly revenue per subscriber during Q4, up nearly $5 each month compared to this time last year.
• Q4 revenue jumped 13 percent to $7.46 billion, but DirecTV's profit margin decreased as a result of increased programming costs and the expense of its Sunday Ticket rights deal.
• DirecTV saw an average monthly subscriber churn rate in Q4 of 1.52 percent, up slightly compared to the 1.44 percent churn rate it posted during Q4 2010. It posted a churn rate of 1.56 percent in 2011, up from 1.53 percent in 2010.

DirecTV CEO Michael White is scheduled to field questions from analysts about the company's performance during its earnings call Thursday afternoon.

For more:
- see the earnings release

Special Report: Sizing up the cable industry in Q4 2011

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