Even though the market is saturating and gaining subscribers is becoming difficult, there are still ways to grow and DirecTV is perfectly capable of capitalizing on those.
The performance is commendable given that the U.S. pay-TV market is highly saturated. However, if we compare DirecTV’s subscriber performance in 2012 against 2011, we note that there was a substantial decline.
While mobile device markets move toward their saturation points, mobile services are booming.
While DirecTV has maintained its service quality, the market is getting increasingly competitive and saturated, thus making it harder for the pay-TV companies to add subscribers.
We expect DirecTV to continue to gain net subscribers, even though the pace might slow down as the market becomes more saturated and rivals improve their offerings.