DirecTV CEO: Programming Costs Will Continue To Be A Challenge

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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