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2000 Satellite Broadcasting and Communications Association Show READ ALL ABOUT IT! PAGE 4 DirecTv Leads Hughes Through Second Quarter DirecTv is on track to hit the high end of its prediction earlier this year that it would have between 9.5 million and 10 million total subscribers by the end of the year, Eddy Hartenstein, head of DirecTv’s global operations, told analysts Monday. “We’re looking to be even more aggressive” in the second half of the year, he said, adding the company wants to capitalize on the “slow” rollout of digital cable service around the country. DirecTv is aiming to add 30 percent to 40 percent more gross subscribers compared to the first half of this year, Hartenstein said. Part of that increased demand will be driven by a more concerted effort to sell local-into-local, Hartenstein said. “We haven’t even really begun yet the marketing and education that goes along with this,” he said. DirecTv is still experiencing take rates of approximately 50 percent in markets where local stations are available. DirecTv is confident the supply problems that plagued its retailers late last year and early this year are a thing of the past, Hartenstein said. DirecTv said it expects its subscriber acquisition costs to rise from $490 for first six months of this year to $525 for the second half, with a full-year level of $510. DirecTv expects within the “next few weeks” to wrap up discussions with manufacturers and consumer electronics chains about various subsidies and commissions which should help keep subscriber acquisition costs down, Hartenstein said. DirecTv’s record number of subscriber acquisitions in the second quarter helped boost revenues to $1.13 billion, a 45 percent increase over second quarter 1999. DirecTv accounted for most of its parent Hughes Electronics’ second quarter revenues of $1.8 billion. However, the cost of acquiring those subscribers increased the company’s net loss from $11.5 million in second quarter 1999 to $14 million in the second quarter of this year. DirecTv also said it took in $58.50 per subscriber, per month in the second quarter. TURN THE PAGE OTHER ISSUES TO LOOK FOR: Tuesday, July 20, 2000 Wednesday, July 21, 2000   Please direct questions about this site to general.mail@satbiznews.com q 2000 Satellite Business News Inc. All rights reserved.