DVR Delay May Alienate DirecTV Customers: Report By Mary Crane Forbes.com
07.24.06, 11:42 AM ET http://www.forbes.com/markets/2006/07/24/directv-0724markets07.html DirecTV has delayed for the third time its new hi-definition digital video recorder, which could mean more customers will switch to competitors, according to a report from research firm Sanford C. Bernstein. The new DVR was originally scheduled to launch early this year and is now being pushed back until the fall. Until recently, many customers have said they were willing to wait to upgrade to hi-definition television, or HDTV, until the new DVR is available. "But," wrote Sanford C. Bernstein analyst Craig Moffett in a report to investors Monday, "we're skeptical investors will continue to give DirecTV a free pass." Customers who have just spent money on expensive flat-panel hi-definition televisions may not be willing to wait for DirecTV to come up with its new offerings and could switch to competitor EchoStar's DISH satellite network or cable operators instead. And for those that do stay with DirecTV, upgrades will mean a sharp uptick in retention-marketing costs. "Product shortages will only delay the inevitable, in our view," Moffett said, as DirecTV continues to fall behind its cable peers in high-definition offerings, especially industry leader Comcast. The analyst maintained a "market perform" rating and $16 price target on DirecTV. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
