DirecTV (DTV) Hits L..A. Sports Fans with New Charge, May Expand into Other Markets (NWSA) (TWC)
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When it comes to improving top-line growth, DirecTV (Nasdaq: DTV) likes to go the "old fashioned" route: charge more.
According to the LA Times, DirecTV is implementing a surcharge of $3 per month if users want to have access to all regional sports networks. In Los Angeles, that amounts to four.
The Times notes that the surcharge is being implemented for new subs only and only in areas where there are multiple sports channels. It's not clear what regions are being tested right now, but the Times did note that some current subs are also seeing the extra charge appear on their bill.
Competitors in the regional sports network market include News Corp.'s (Nasdaq: NWSA) Fox Sports unit, Time Warner Cable (NYSE: TWC), and Comcast Corp (Nasdaq: CMCSA). The move might paint regional broadcasters as "the bad guys," because contracts signed by the networks are typically packaged in the same manner as Disney's (NYSE: DIS) ESPN.
The Times cites a DirecTV spokesperson in saying that the charge reflects only a small portion of the total cost DirecTV pays broadcasters to carry coverage.
Shartes are down about 0.8 percent.
According to the LA Times, DirecTV is implementing a surcharge of $3 per month if users want to have access to all regional sports networks. In Los Angeles, that amounts to four.
The Times notes that the surcharge is being implemented for new subs only and only in areas where there are multiple sports channels. It's not clear what regions are being tested right now, but the Times did note that some current subs are also seeing the extra charge appear on their bill.
Competitors in the regional sports network market include News Corp.'s (Nasdaq: NWSA) Fox Sports unit, Time Warner Cable (NYSE: TWC), and Comcast Corp (Nasdaq: CMCSA). The move might paint regional broadcasters as "the bad guys," because contracts signed by the networks are typically packaged in the same manner as Disney's (NYSE: DIS) ESPN.
The Times cites a DirecTV spokesperson in saying that the charge reflects only a small portion of the total cost DirecTV pays broadcasters to carry coverage.
Shartes are down about 0.8 percent.
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