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DirecTV and EchoStar face slowing net adds and rising competition
With satellite services ending the year and counting on the seasonal fourth-quarter push to increase sales, some analysts are looking back over the year pulling the companies down to earth. Worse yet, some see a bleak future for satellite radio and television - and are warning investors to keep their feet on the ground when it comes to the sky-bound services.
One such analyst is Cowen and Company's Tom Watts, who said last week that satellite service's third quarter was dull, weak and anti-climatic. Watts called both Sirius and XM are merely "idling" until next year, WorldSpace is "sputtering" and both DIRECTV and DISH are "stalling."
"XM and Sirius continue to fend off jealous attacks from the music and broadcasting industries (and) royalty negotiations with RIAA (Recording Industry Association of America) are going to arbitration," the analyst said. Although "the NAB continues to try to use the FCC to hamper satellite radio's progress in any way possible... these issues (are) resolvable."
Watts also projects rising challenges for the satellite TV business as "DIRECTV and EchoStar face slowing net adds and rising competition." Free cash flow take-off delays, stalled buybacks and a lack of merger and acquisition activity could limit DBS' prospects in the future," he said.
www.SkyReport.com - used with permission
With satellite services ending the year and counting on the seasonal fourth-quarter push to increase sales, some analysts are looking back over the year pulling the companies down to earth. Worse yet, some see a bleak future for satellite radio and television - and are warning investors to keep their feet on the ground when it comes to the sky-bound services.
One such analyst is Cowen and Company's Tom Watts, who said last week that satellite service's third quarter was dull, weak and anti-climatic. Watts called both Sirius and XM are merely "idling" until next year, WorldSpace is "sputtering" and both DIRECTV and DISH are "stalling."
"XM and Sirius continue to fend off jealous attacks from the music and broadcasting industries (and) royalty negotiations with RIAA (Recording Industry Association of America) are going to arbitration," the analyst said. Although "the NAB continues to try to use the FCC to hamper satellite radio's progress in any way possible... these issues (are) resolvable."
Watts also projects rising challenges for the satellite TV business as "DIRECTV and EchoStar face slowing net adds and rising competition." Free cash flow take-off delays, stalled buybacks and a lack of merger and acquisition activity could limit DBS' prospects in the future," he said.
www.SkyReport.com - used with permission