DirecTV Hardware Standards, Distribution to Change

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From our friends at SkyRetailer.com

New Plan to Help Initiate Brand Consistency

DirecTV unveiled a new strategy for the development and distribution of its set-top boxes. This new strategy will offer customers a simple and more user-friendly DirecTV experience, while also delivering a more efficient supply-chain process to its retail partners.

Beginning mid-2004, the company will assume complete responsibility for the sale and distribution to retail of all set-top boxes used to receive DirecTV programming and services. Over the course of the year, authorized manufacturers of DirecTV hardware will migrate to a new standardized hardware specification. Similarly, the various consumer electronics brands currently associated with DirecTV equipment will be replaced by the DirecTV brand.

The standardization of all new DirecTV hardware and brand consistency is intended to simplify the customer decision-making process and DirecTV selling process while eliminating confusion and enhancing overall customer satisfaction. With DirecTV's new role as purchaser and distributor of hardware for all of its retail partners, DirecTV retailers will enjoy a single point of contact for all of their DirecTV needs.

As part of this new hardware strategy, the company will continue its aggressive marketing of the DirecTV DVR with TiVo. In addition, this new strategy will support DirecTV's expanding position as a provider of high-definition hardware and programming, including the launch of the DirecTV HD DVR in the first quarter of this year.

 

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And then there were 3

3 Distributors (for the time being) will remain in the DIRECTV business. Perfect 10, metron and DSI will continue to distribute the DIRECTV branded box made by Samsung, Thomson, or Philips. What's that? No more Hughes manufactured boxes? Yes, that's the rumor happening right now!

The end of the year will hold more exciting news, like the announcement that the $125 buydown will change effective 1 March 04 to $115. This obviously also reduces the potential chargeback, but UPS the cost of each receiver by $10. As a distributor, we don't have $10 profit in a whole system anymore (how can I earn commission on something I give away?).