Home » Bear Case Scenario » Directv Bear Case Scenario $DTV, $CMSA, $TWC, $DISH, $NPSNY, $T, $VZ, $DIS, $CBS

Directv Bear Case Scenario $DTV, $CMSA, $TWC, $DISH, $NPSNY, $T, $VZ, $DIS, $CBS

Directv is about to release earnings. Basically it is a technology play wrapped up in a consumer spending model purveying entertainment. Ponder the Bear Case Scenario.

Directv must pay continuingly higher prices for its content. If it does not provide compelling content clients will see no reason to pay monthly subscription fees. The next NFL contract will be very very very expensive. Who needs it more?

Traditional telephone and cable companies can provide voice, data, internet, cable even olde school landline. Directv does not offer any of these really compelling offerings.

Latin America is a large rich market. Directv is facing increased competition from other providers. Price competition will drive margins down.

Satellites and associated infrastructure are expensive to maintain. Cable and telco repair is relatively simple when compared to problems with earth orbiting satellites.

George Gutowski writes from a caveat emptor perspective.

Advertisements