DIRECTV (DTV) Stock Goes for a Hulu Boost

It’s a different game for DIRECTV (NASDAQ:DTV) in Latin America, as average revenue per user breaks down to just $54.23. Currency fluctuations aside, the annual increases aren’t the same in Latin America, as it reaches out beyond the affluent for middle-market customers. We’re not at the point where cord-cutting is a trend in Latin America, but DIRECTV doesn’t want to be on the wrong end of the digital trend if streaming video becomes a difference-maker. Acquiring Hulu — and naturally beefing up its Spanish and Portuguese licensed content — would help it compete with Netflix’s platform.

Paying too much for Hulu may sting some potential bidders, but DIRECTV stock would probably move higher if the company does indeed emerge victorious, because it makes tactical sense.

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends DIRECTV and Netflix and owns shares of Netflix.

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