NEW YORK, Jan 5 (Reuters) - DirecTV Group, the leading U.S. satellite TV provider, said on Tuesday it expects its subscriber acquisition costs to increase in 2010 as it invests in more advanced services and products to differentiate itself from rivals at the cable companies.
DirecTV Chief Financial Officer Patrick Doyle said his company is investing in services such as multi-room viewing and broadband connections to set top boxes.
Multi-room viewing allows a subscriber to watch a show in one room, pause it, then continue watching the show in another room.
Doyle, who was speaking at a Citi investor conference in San Francisco, said investing in new advanced services will adds to some 'upward pressure' in subscriber acquisition costs in 2010.
'We are going to invest more in the home this year,' said Doyle. 'These are the kinds of things we feel very comfortable about: making the experience better, differentiating ourselves and also generating additional revenue.'
The company previously said it expects the rate at which it adds new customers to slow in 2010 compared with 2009. In 2009, it added more subscribers than Wall Street expected as it took advantage of troubles at rival DISH Network Corp and received a boost from the U.S. government mandated digital TV transition.
Doyle also said his company's board will consider paying out a dividend as another way of returning cash to shareholders, as well as its ongoing share repurchase program.
DirecTV, owned by cable veteran John Malone, was split off by Malone's Liberty Media last year and subsequently merged with Liberty Entertainment to create a larger company, including several cable networks.
The creation of a newly independent DirecTV has fueled speculation a big telephone company marketing partner such as Verizon Communications Inc or AT&T Inc could buy the satellite provider.
DirecTV has held talks with both companies about using their 4G wireless spectrum to deliver video to customers.
Investors have also speculated whether DirecTV will spin off its fast growing Latin America unit.
Doyle said the board has considered spinning of DirecTV Latin America and whether to set up a tracking stock. But he said more value is created by keeping the Latin America unit within the DirecTV family.
(Reporting by Yinka Adegoke; editing by Andre Grenon)
((e-mail:yinka.adegoke@thomsonreuters.com Reuters Messaging: Yinka.adegoke.reuters.com@reuters.net +1 646 223 6081)) Keywords: DIRECTV/ (Click on http://blogs.reuters.com/category/themes/mediafile/ to see Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
DirecTV Chief Financial Officer Patrick Doyle said his company is investing in services such as multi-room viewing and broadband connections to set top boxes.
Multi-room viewing allows a subscriber to watch a show in one room, pause it, then continue watching the show in another room.
Doyle, who was speaking at a Citi investor conference in San Francisco, said investing in new advanced services will adds to some 'upward pressure' in subscriber acquisition costs in 2010.
'We are going to invest more in the home this year,' said Doyle. 'These are the kinds of things we feel very comfortable about: making the experience better, differentiating ourselves and also generating additional revenue.'
The company previously said it expects the rate at which it adds new customers to slow in 2010 compared with 2009. In 2009, it added more subscribers than Wall Street expected as it took advantage of troubles at rival DISH Network Corp and received a boost from the U.S. government mandated digital TV transition.
Doyle also said his company's board will consider paying out a dividend as another way of returning cash to shareholders, as well as its ongoing share repurchase program.
DirecTV, owned by cable veteran John Malone, was split off by Malone's Liberty Media last year and subsequently merged with Liberty Entertainment to create a larger company, including several cable networks.
The creation of a newly independent DirecTV has fueled speculation a big telephone company marketing partner such as Verizon Communications Inc or AT&T Inc could buy the satellite provider.
DirecTV has held talks with both companies about using their 4G wireless spectrum to deliver video to customers.
Investors have also speculated whether DirecTV will spin off its fast growing Latin America unit.
Doyle said the board has considered spinning of DirecTV Latin America and whether to set up a tracking stock. But he said more value is created by keeping the Latin America unit within the DirecTV family.
(Reporting by Yinka Adegoke; editing by Andre Grenon)
((e-mail:yinka.adegoke@thomsonreuters.com Reuters Messaging: Yinka.adegoke.reuters.com@reuters.net +1 646 223 6081)) Keywords: DIRECTV/ (Click on http://blogs.reuters.com/category/themes/mediafile/ to see Reuters MediaFile blog) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.