DirecTV must be doing something right — it made more money than last year and continued to add new subscribers during its third quarter, which ended Sept. 30.
The El Segundo satellite TV service added 136,000 net new subscribers during the quarter, bringing its total to 18.4 million customers. While the subscriber growth is lower than the same time last year, DirecTV is growing.
Comparably, both the number one and two cable companies saw their subscriber count drop during the same period. Comcast, the nation’s largest cable provider, lost 656,000 video customers during the quarter, while second-place Time Warner Cable lost 84,000 customers.
DirecTV’s interim chief executive Larry Hunter attributed the subscriber growth to marketing its service with AT&T. Sales growth — revenues were up 10 percent from a year ago to $5.47 billion — came from more people subscribing to its HD and DVR services, plus growth in Latin America.
But consumers should keep in mind that DirecTV’s sales growth also meant higher prices. The company said the average customer’s bill increased 2.1 percent to $85.32. Customers are paying more for programs, HD channels and DVR service fees. Then again, DirecTV is the only company that offers programming like NFL Sunday Ticket, a $200 package.
Meanwhile, DirecTV’s payment to TV networks in order to offer channels increased 1.2 percent per subscriber. DirecTV spent nearly $2 billion on programming costs.
Read DirecTV’s third-quarter 2009 earnings report HERE.
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