Free Radio Service for DTV Users - Analyst Blog


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DIRECTV ( DTV ) recently announced that it has struck a deal with Pandora Media, Inc ( P ), a provider of online radio services in the US. Following the deal, DIRECTV subscribers will enjoy free radio services.

In order to access this free radio service, the subscribers of DIRECTV just need to sign up with Pandora on their DIRECTV HD DVR. Moreover, the new 1080p HD Guide from DIRECTV will allow users to quickly scroll through the menu in order to select their popular songs as well as customize their favorite radio stations.

DIRECTV is facing tough competition from telecom and other cable and satellite service providers as they continue to diversify their product portfolio. Major telecom and cable pay-TV operators offer double (voice and internet) as well as triple play (voice, internet and TV) services to its customers, which DIRECTV lacks in its product portfolio.

Moreover, the U.S. pay-TV market is also getting saturated. So, in order to retain its customer as well as to counter stiff competition the company is rolling out new value added products and services to its customers.

In October last year, the company launched its popular Nomad device, which provides flexibility to subscribers to watch programs from anywhere they feel like. The company is also planning to launch a new product called 'Home Media Center' in the upcoming months.

The new device not only records five shows at one time but also has double storage capacity as compared to traditional HD DVR. Such new products will not only help them to combat competition but also create new revenue streams for the company going forward.

We maintain our long-term Neutral recommendation on DIRECTV. Currently, DIRECTV has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

California-based DIRECTV Group Inc. is a provider of satellite delivered digital television and video service.

DIRECTV ( DTV ): Free Stock Analysis Report
PANDORA MEDIA ( P ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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