[Sixto]

If you have an hour, interesting listen ...

Sanford Bernstein's 28th Annual Strategic Decisions Conference
Speaker: Michael White, Chairman, President & CEO
Jun 1, 2012 11:00 AM ET

http://investor.directv.com/events.cfm

Just a few notes ...

Major growth in Latin America as we knew (lots of discussion at beginning)
Being very aggressive with content providers, will go dark if needed
Very important to keep existing subscribers, and always need to be careful to balance new offers with current subscribers
2M of 20M subscribers take Sunday Ticket
Home Media Center "later this year" (said it twice)
High-end subscribers don't really care much about price, content like sports very important to them
Re: Apple TV, doesn't seem tight with Apple (other then apps), content the key
Will continue hybrid approach, satellite and on-demand
No Longhorn Network and no plans, Pac12 working on it, need to be discipline with all these new RSNs
Strategic logic to just one satellite company (DirecTV & Dish) but hard with current administration
Wireless (internet) doesn't seem anything coming (ala what Dish is doing)
Not losing customers to Dish due to margin
Stock undervalued, still very optimistic on growth
Dividend still not in plans (at least not now)
Much shared behind the scenes between U.S. and Latin America operations (no need to spin off either)
U.S. still growth market
Heck of a product pipeline coming, aggressively driving digital strategy, we'll hear more about product in the Fall (alot of new product ideas)
Looking to totally rethink the customer experience (30% of calls are complaints about billing, 25% of calls are because something didn't get fixed the first time, 10% of truck rolls are unnecessary)
Most worried: programming costs, concerned not sustainable with consumers

If others listen, please add anything you hear that seems important, I didn't start taking notes until after the Latin America stuff.

 

[Xsabresx]

2M of 20M subscribers take Sunday Ticket

Is that paid or total and if total I wonder how much of that is paid.

 

[Sixto]

Is that paid or total and if total I wonder how much of that is paid.

When asked about the change in strategy with Sunday Ticket pricing (lower), just made a quick comment that it's 2M of the 20M.

 

[bobvick1983]

What was he referring to when he mentioned "home media center" I thought that is what they called the HR34.

 

[Sixto]

What was he referring to when he mentioned "home media center" I thought that is what they called the HR34.

The assumption is that it's the HR34 with RVU clients in a more significant way.

 

[RAD]

Is that paid or total and if total I wonder how much of that is paid.

When asked about the change in strategy with Sunday Ticket pricing (lower), just made a quick comment that it's 2M of the 20M.

Out of that I wonder how much is residential vs. commercial since commercial?

 

[JoeTheDragon]

one satellite company can be cool just think of having most channels with a EAST and WEST HD feeds.

 

[Laxguy]

Re: Apple TV, doesn't seem tight with Apple (other then apps), content the key

Could you please expand a touch on this one?

 

[Sixto]

Re: Apple TV, doesn't seem tight with Apple (other then apps), content the key

Could you please expand a touch on this one?

They asked about the Apple TV, the future stuff rumored to be coming. He somewhat downplayed it, said the real issue is the content agreements, which DirecTV has and Apple will be hard pressed to do anything better.

I've always been dreaming that someday Apple would do a deal with DirecTV and have full U.S. coverage on some new cool Apple device.

Just listening closely to his answer and every word, didn't get any hint of anything special about to happen with Apple, other then the normal stuff with iPhone and iPad apps.

He did mention that he has an Apple TV (old model) in his Cape Cod home and rarely uses it.

 

[bobvick1983]

one satellite company can be cool just think of having most channels with a EAST and WEST HD feeds.

Wouldn't be too "cool" when their would be no competition in the DBS industry. If you are in a rural area with no cable or anything like UVerse or FiOS, it's either DirecTv, Dish, or OTA.

 

[Davenlr]

one satellite company can be cool just think of having most channels with a EAST and WEST HD feeds.

You are assuming the FCC would allow one company to use all the slots allotted to both companies, and that one company would not actually DECREASE the channels available, due to no longer having to worry about rural customers jumping ship. Why bother paying big bucks for a channel only 10% of the customers watch.

Also, they could effectively shut down ALL the locals nationwide, since people in the boonies would have no choice in another provider, so would not leave, and people in town can get locals on basic cable, antenna, or rabbit ears.

 

[Laxguy]

Thanks! He can probably afford a new one; my first gen is gathering dust, and has since I got it. My gen 3 though has been a treat.

 

[JoeTheDragon]

You are assuming the FCC would allow one company to use all the slots allotted to both companies, and that one company would not actually DECREASE the channels available, due to no longer having to worry about rural customers jumping ship. Why bother paying big bucks for a channel only 10% of the customers watch.

Also, they could effectively shut down ALL the locals nationwide, since people in the boonies would have no choice in another provider, so would not leave, and people in town can get locals on basic cable, antenna, or rabbit ears.

well they have cable to deal with and just thing they tell people in the WEST NOW CAN SEE MORE your SHOWS AT the same time as they air on cable.

 

[Shades228]

well they have cable to deal with and just thing they tell people in the WEST NOW CAN SEE MORE your SHOWS AT the same time as they air on cable.

Pre DVR this was a large complaint. Now days it's almost the opposite. Most people just comlpain about sports but they will never delay those broadcasts anymore as people want everything instantly.