DIRECTV PARA TODOS 'Home Away From Home' Programming Attracts Hispanic Viewers in Record Numbers
Posts 120,000 Net New Customers for First Quarter 2005; Spanish-Language Service Doubles Its Customer Base to 700,000 in Past Year; Leads All Pay TV Services in Offering More Top-Rated, Country-of-Origin Spanish-Language
Programming
As pay TV services
scramble to meet the programming demands of the booming Hispanic population in
the United States, DIRECTV, Inc., the nation's leading and fastest-growing digital television service provider, has emerged as the only entertainment provider to offer Hispanics culturally relevant, top-rated Spanish-language
programming from their home country. The DIRECTV PARA TODOS(R) service "home-away-from-home" programming strategy has propelled the Spanish-language package to another record quarter of growth -- adding 120,000 net new subscribers for the first quarter of this year -- a 63 percent increase over the previous quarter, which was the service's best in its history. The first quarter numbers represent a 222 percent increase over the same period a year ago, continuing the momentum for DIRECTV's Spanish-language programming service, which nearly doubled its growth rate in 2004 and is growing at a faster rate than its satellite TV and cable competitors. The DIRECTV PARA TODOS service had more than 700,000 total platform customers as of March 31, 2005. Looking beyond the traditional marketing belief that emphasizes the need to tailor product and service offerings only to U.S. Latinos of Mexican origin, the DIRECTV PARA TODOS management team recognizes the importance of catering to a diverse U.S. Hispanic population, including the 35 percent of U.S. Hispanics from Central America, South America and Spain. "We are changing the landscape of Spanish-language TV in the United States to become a 'home away from home' for U.S. Hispanics," said Mark Ryan, senior director, Marketing, DIRECTV, Inc. "In developing what we call our 65/35 programming strategy, we know that our Hispanic customers' most important need is to connect with their country of origin, with the culture and theirtraditions. Incorporating the top-rated, country-of-origin programming like Colombia's Caracol TV, Ecuador's Ecuavisa, and WAPA-America/Puerto Rico underscores our commitment to provide programming to the many underserved segments of this country's Hispanic community."
According to Ryan, DIRECTV PARA TODOS' competitive edge is strengthened by the company's ability to secure exclusive deals with the leading networks in those Latin American countries with significant populations in the United States, resulting in a television service with 40 of the best and most popular
Spanish-language channels in the world.
According to the 2000 U.S. Census, Hispanics are the fastest-growing ethnic group in the U.S. -- representing close to 40 million people -- and
Mexicans account for more than 65 percent of the U.S. Hispanic population.Industry surveys show that the U.S. Hispanics in the U.S. are willing to pay more for digital cable, premium programming and large-screen TVs.According to a survey by Knowledge Networks/SRI, a N.J. media research firm, 44 percent of Hispanic households in the United States own a large-screen TV, compared with 40 percent of white households.
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