DIRECTV (DTV) Comes Under Fire in Colorado

Page 2 of 2

In 2012, DIRECTV was rated No. 14 in Business Insider’s “15 Most Disliked Companies in America” list. True, that’s not as bad as Cox Communications at No.7, Time Warner Cable Inc (NYSE:TWC) at No. 6, or Comcast Corporation (NASDAQ:CMCSA) at No. 4, but it’s not great, either.

However, DIRECTV (NASDAQ:DTV) has a few things going for it. One, it’s definitely ahead of its competition when it comes to consumer satisfaction. According to the latest report from the American Consumer Satisfaction Index, DIRECTV improved its customer satisfaction rating by 5.9% from the previous year. Also, when it comes to cable providers, DIRECTV has an overall score of 72, which is second only to FiOS operator Verizon Communications Inc. (NYSE:VZ)‘s score of 73.

Two, DIRECTV has continued to have strong financials: Among other positive trends, according to its first-quarter 2013 results, DIRECTV grew net subscribers by 604,000 and revenue by 8%, and its average monthly subscriber churn stayed pretty much the same, going from 1.44% for the three months ended March 2012 to 1.45% for that same period in 2013.

What to watch for
DIRECTV (NASDAQ:DTV)’s initial response to Colorado’s wildfire victim is concerning and points to a need for improvement. It’s especially concerning given that this is the second time DIRECTV has responded in such a fashion. Yes, DIRECTV is ahead of most cable providers right now, and it has strong financials, but if it continues to alienate customers, that could change. Consequently, investors would do well to continue monitoring customer satisfaction and subscription rates. If either takes a turn for the worse, that could be a bad sign for future investment profits.

The article DIRECTV Comes Under Fire in Colorado originally appeared on Fool.com and is written by Katie Spence.

Fool contributor Katie Spence has no position in any stocks mentioned. Follow her on Twitter: @TMFKSpence. The Motley Fool recommends DIRECTV.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2