One of the leading U.S satellite TV operators,
Hilton Worldwide Holdings Inc.
) are planning to collaborate to offer high-quality in-room TV
viewing experience for hotel guests.
As per the deal, DIRECTV will be the preferred satellite TV
distributor for Hilton Worldwide and will deliver its popular HD
channels with user friendly remote controls to over half a
million hotel guest rooms across the U.S.
Moreover, Hilton Worldwide will continue to use DIRECTV's
Residential Experience (DRE) technology. The DRE platform will
not only lower cost per channel but will also reduce power
consumption. Hilton Worldwide has already installed the DRE
technology in more than 220 hotels across the country and expects
to cover each of its hotels in the nation going forward.
DIRECTV will also benefit from the Hilton Worldwide's new
promotional offer for members of Hilton HHonors, which is an
award-winning customer loyalty program. The offer promises
loyalty points or free stays at Hilton Worldwide properties in
2014 to members who opt for DIRECTV services at their residence.
DIRECTV's Residential Experience technology, which was launched
in 2011, is gaining significant popularity in the hospitality
industry. The technology enhances the TV viewing experience in
hotels for a reasonable cost. An anti-microbial remote control is
also available with the Residential Experience TV service.
In the fourth quarter of 2014, the DIRECTV U.S. segment added net
93,000 subscribers as compared with 103,000 in the year-ago
quarter. Average monthly subscriber churn rate in the reported
quarter was 1.41% against 1.43% in the previous-year quarter.
Hence, we believe that the new deal with Hilton Worldwide will
not only drive the company's top line but will also safeguard its
position against cable and satellite TV operators like
DISH Network Corp.
DIRECTV currently has a Zacks Rank #2 (Buy).
COMCAST CORP A (CMCSA): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
DIRECTV (DTV): Free Stock Analysis Report
HILTON WW HLDG (HLT): Free Stock Analysis
To read this article on Zacks.com click here.