DirecTV Lobbying Efforts Q3

[Ken S]

DirecTV spent $460K lobbying in 3Q

The DirecTV Group Inc. spent $460,000 in the third quarter lobbying Congress on the digital television transition, sports programming, taxes and other issues.

Entire story: http://www.forbes.com/feeds/ap/2008/11/12/ap5685837.html

[JLucPicard]

If they're lobbying to squash the whole "well, cable has to pay local taxes to operate in an area where it uses the municipality's infrastructure to provide service, so we think satellite customers should pay a similar tax to make things 'fair' even though they don't use any of the municipality's infrastructure", then more power to 'em!

[curt8403]

If they're lobbying to squash the whole "well, cable has to pay local taxes to operate in an area where it uses the municipality's infrastructure to provide service, so we think satellite customers should pay a similar tax to make things 'fair' even though they don't use any of the municipality's infrastructure", then more power to 'em!
+1

[LarryFlowers]

If they're lobbying to squash the whole "well, cable has to pay local taxes to operate in an area where it uses the municipality's infrastructure to provide service, so we think satellite customers should pay a similar tax to make things 'fair' even though they don't use any of the municipality's infrastructure", then more power to 'em!

The lobbying worked... sort of... though not quite the way we would have liked to see it.

Congress has apparently decided that the cable and satellite are to be treated "equally", i.e., if you put a sales tax on one you have to put it on the other... unlikely that any state will rollback the taxes, though I suspect they will be more than willing to tax both "equally".

[tonyd79]

This is a thread because?

[Ken S]

This is a thread because?

Well, let's see this is a forum about DirecTV and that was a news story about DirecTV. What part of that would make it off topic?

[Bronco70]

Only six states currently collect a tax for DBS. I just checked my account online. NC calls it "Video Sales Tax". $13.51/month in my case. I would be very surprised if these taxes ever go away.

NC passed a temporary tax on all food purchases back in the 60's. In recent years it was 4%. The original measure was supposed to expire after a few years. After 30 years or so, it was kind of eliminated. It is now 2%, but local, not State. All these years and this very regressive tax remains.

I am surprised that more states have not taxed DBS. They could calll it a "Luxury" tax or a "spread the wealth" tax and make D* subs feel Patriotic. :)

[Ken S]

On the lobbying efforts. It appears DirecTV spends about $2 million or so a year on federal lobbying (they also lobby at the state and local levels).

Their issues seem to be:

1. Taxes on satellite service.
2. Rule that requires them to carry all HD locals in an area if they carry one HD local
3. The whole Comcast Sports thing in Philly (microwave)
4. The right to continue getting exclusive deals on sports coverage (Sunday Ticket, etc).

I'm sure there's more. Lobbying isn't always a bad thing as it can serve to inform politicians of what the issues are...it's only when the lobbying goes well beyond education that problems ensue. However, at any level it tends to make it difficult for less profitable groups to have their side of an issue heard.

I am not by any means suggesting that DirecTV or its lobbyists are engaging in any unethical or illegal activities. I just posted this thread because I thought some may be interested.