December 12, 2007

Hype Definition

Name: Chase Carey
Title: President/CEO, DirecTV

Why Him? Let’s be honest. Cable was getting cocky, pointing out that DBS operators simply can’t compete when it comes to the triple play. That’s somewhat true, of course. But what’s also true is that savvy CEOs like Chase Carey aren’t stupid. He has watched (twirling that mustache, no doubt) as cable operators and telcos try to bleed each other dry marketing the “bundle”—all while he can focus almost obsessively on video, video, video. And lately more HD. And while we can all quibble about exactly how many HD channels DirecTV is offering, consumers are getting the hard sell that satellite is the path to their HD salvation. Who’s telling them? Christopher Lloyd, Sigourney Weaver, Peyton Manning, Beyoncé… you know… the HD experts. Then again, DirecTV’s tactics seem to be convincing many consumers to switch. The satcaster added 240K subs in 3Q alone and now boasts 16.6mln total—with Carey noting the large number of affluent subs flocking to his open arms (a potential advantage if the economy turns sour). All of this has aided the basic sub losses that incumbent cable operators have experienced lately. And it’s a key factor in forcing MSOs to step up to the HD plate by upgrading to switched digital video, and pressuring programmers to launch more HD channels and content. C’est la vie. C’est competition.  MG


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