Directv Case
Strategic Analysis of DIRECTV and DISH Network
DIRECTV
DIRECTV (NASDAQ:DTV), established in 1994, provides digital television entertainment services through its subsidiaries and affiliated companies in the United States, India, Brazil, Mexico and other countries in Latin America. DIRECTV provides digital television service to 19.22 million customers in the United States and 8.85 million customers in Latin America. (DIRECTV, 2010). DIRECTV reported revenues of $24.1 billion in 2010 with net profit margin percent of 9.12. DIRECTV is composed of two main operating units - DIRECTV U.S., and Latin America, as well as DIRECTV Regional Sports Networks. As of December 31, 2010, DIRECTV U.S. had 19.22 million subscribers with average monthly revenue per subscriber, or ARPU, of $89.71. (DIRECTV, Annual Report, 2010) (Exhibit B). DIRECTV has strategically partnered with AT&T, Verizon, Qwest, CenturyLink, and Frontier to provide TV services bundled with phone and internet. DIRECTV’s mission is to provide customers with the best video experience in the United States both inside and outside of the home by offering subscribers unique, differentiated and compelling programming through leadership in content, technology and customer service. (DIRECTV, 2010)
Differentiation Business Model …show more content…
DISH Network, a publicly traded Fortune 200 company, is the media and entertainment firm of its former parent company, EchoStar Communications Corporation, founded in 1980. DISH Network reported revenues of $11.6 billion in 2009 with net profit margin percent of 7.79. As of December 31, 2009, DISH Network had 14.1 million subscribers with average monthly revenue per subscriber, or ARPU, of $70.04. ) (DISH NETWORK, Annual Report, 2009, Exhibit B) The mission of DISH Network is to be the best at delivering video anytime, anywhere. (DISH NETWORK,
DIRECTV
DIRECTV (NASDAQ:DTV), established in 1994, provides digital television entertainment services through its subsidiaries and affiliated companies in the United States, India, Brazil, Mexico and other countries in Latin America. DIRECTV provides digital television service to 19.22 million customers in the United States and 8.85 million customers in Latin America. (DIRECTV, 2010). DIRECTV reported revenues of $24.1 billion in 2010 with net profit margin percent of 9.12. DIRECTV is composed of two main operating units - DIRECTV U.S., and Latin America, as well as DIRECTV Regional Sports Networks. As of December 31, 2010, DIRECTV U.S. had 19.22 million subscribers with average monthly revenue per subscriber, or ARPU, of $89.71. (DIRECTV, Annual Report, 2010) (Exhibit B). DIRECTV has strategically partnered with AT&T, Verizon, Qwest, CenturyLink, and Frontier to provide TV services bundled with phone and internet. DIRECTV’s mission is to provide customers with the best video experience in the United States both inside and outside of the home by offering subscribers unique, differentiated and compelling programming through leadership in content, technology and customer service. (DIRECTV, 2010)
Differentiation Business Model …show more content…
DISH Network, a publicly traded Fortune 200 company, is the media and entertainment firm of its former parent company, EchoStar Communications Corporation, founded in 1980. DISH Network reported revenues of $11.6 billion in 2009 with net profit margin percent of 7.79. As of December 31, 2009, DISH Network had 14.1 million subscribers with average monthly revenue per subscriber, or ARPU, of $70.04. ) (DISH NETWORK, Annual Report, 2009, Exhibit B) The mission of DISH Network is to be the best at delivering video anytime, anywhere. (DISH NETWORK,