DirecTV CEO: Programming Costs Will Continue To Be A Challenge
May 26 2010 - 2:34PM
Dow Jones News
DirecTV Group Inc. (DTV) Chief Executive Michael White said he
believes rising programming costs will continue to be a challenge
for the industry, but added the company can manage its way through
the issue.
"I don't see a silver bullet for the problem," White said during
an investor conference Wednesday.
Satellite TV providers, cable companies and the
telecommunications providers are all facing the issue of higher
per-subscriber fees from cable and broadcast networks, which have
led to public and ugly spats.
Dish Network Corp. (DISH) last week threatened to pull the
Weather Channel from its offering before ultimately agreeing to a
deal. Over the past year, Cablevision Systems Inc. (CVC) had
disputes with Scripps Networks Interactive Inc. (SNI) and The Walt
Disney Co.'s (DIS) ABC Broadcasting. Time Warner Cable Inc. (TWC)
barely avoided a blackout from News Corp.'s (NWS, NWSA) Fox
Broadcasting in a year-end standoff.
News Corp. also owns Dow Jones, publisher of this newswire.
DirecTV, meanwhile, is in the middle of a five-year analysis of
its future programming costs. White noted that the company has
already begun to pay some retransmission fees.
White's plea to programmers: "Don't kill the goose that lays the
golden egg." He warned that higher programming costs could
ultimately lead to those expenses getting passed over to consumers,
which could draw the ire of regulators.
Comcast Corp. (CMCSK, CMCSA) is attempting to get ahead of those
costs by acquiring NBC from General Electric Co. (GE). White said
that DirecTV wouldn't be looking for any major content deals,
noting that he couldn't think of how his company could add anything
to the service.
He added, however, that DirecTV would look at deals for sports
content, since that has been part of the company's heritage.
Since taking the reins of DirecTV in the beginning of the year,
White has set some priorities for growth. He wants to continue the
company's push for innovation, and noted that a National Football
League Sunday Ticket program for the Apple Inc. (AAPL) iPad was in
the works, as well as more high-definition channels. The company
also plans to target new areas, such as the Hispanic market,
apartment buildings, and commercial customers.
DirecTV shares rose 1.4% to $37.81.
-By Roger Cheng, Dow Jones Newswires; 212-416-2153;
roger.cheng@dowjones.com
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