Directv (NASDAQ:DTV)

CAPS Rating: 3 out of 5

A Provider of digital television entertainment in the U.S. & Latin America. The Company's two business segments, DIRECTV U.S. & DIRECTV Latin America are engaged in acquiring, promoting, selling and distributing digital entertainment programming.

Recs

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Player Avatar CancerAssassin (< 20) Submitted: 7/27/2012 7:28:20 PM : Underperform Start Price: $49.53 DTV Score: -9.61

DirecTV has done an impressive amount of growth in terms of subscribers but I think the recent (albeit temporary) loss of Viacom channels underscores the bigger problem, the cost of content. Millenials are far less likely to pay for cable/satellite than any previous generation. I believe we will see a shift to a simpler pay per view system. People will end up paying for the content they actually want instead of getting bundled with hundreds of channels the majority of which people don't even scroll through. When advertisers finally recognize that they can dissect customer categories by content, and thus do more direct marketing, the cost of episode/content rentals will plummet and younger people will ditch their boxes in droves.

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