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11-20-2009, 06:04 AM
Satellite : DirecTV Hires PepsiCo Executive White as CEO
DirecTV Hires PepsiCo Executive White as CEO
By ROGER CHENG
DirecTV Group Inc. selected PepsiCo Inc. executive Michael White as its new president and chief executive, bringing in an outsider to lead the company as it looks to sustain its momentum in the pay-TV business.
The El Segundo, Calif., satellite TV provider will look to Mr. White, who will later retire from PepsiCo as the head of its international business, to lead it through increasingly competitive waters. Mr. White will take over Jan. 1.
"I look forward to working with the talented management team and employees as we continue to grow the business, delight the customer and further distance DirecTV's leadership position," Mr. White said in a statement.
Mr. White, who was once considered a potential successor to lead Pepsi, was seen as the most qualified candidate. The Wall Street Journal reported in September that Mr. White was retiring from PepsiCo by year-end.
DirecTV hasn't skipped a beat since Chase Carey left the CEO position to become top lieutenant to News Corp. Chairman and Chief Executive Rupert Murdoch in June. The appointment comes two weeks after the company reported a third-quarter profit of $366 million amid continued subscriber growth.
Mr. White will face challenges in maintaining the company's course. DirecTV has remained relatively protected from the economic downturn because it was ahead of its competitors in offering high-definition programming and the digital video recorder, features that have proven to be attractive to consumers even as they tighten their belts. It has primarily picked off customers from the cable providers, as well as rival satellite player Dish Network Corp.
But the company faces a growing threat from the telecommunications companies. On one hand, DirecTV partners with many of them to sell its television service along with the phone company's Internet, voice and wireless services. On the other, Verizon Communications Inc. and AT&T Inc.—both DirecTV partners—are focused on pushing their own television services.
Dish, meanwhile, has shored up much of its customer service issues and has picked up steam in the last two quarters. The company added 241,000 net subscribers in the third quarter as more customers stuck to its service.
DirecTV, in comparison, added 136,000 U.S. subscribers in the same period as the company sought to weed out customers looking for more discounts or who tended to call up with service problems. As a result, the company's profit margins and average revenue per user rose from a year ago.
DirecTV is slated to merge with majority shareholder Liberty Entertainment once the unit is spun off from parent Liberty Media. The deal, designed to free up DirecTV to strike partnerships and pursue other strategic deals, is expected to close before the end of the year.
DirecTV Hires PepsiCo Executive White as CEO
By ROGER CHENG
DirecTV Group Inc. selected PepsiCo Inc. executive Michael White as its new president and chief executive, bringing in an outsider to lead the company as it looks to sustain its momentum in the pay-TV business.
The El Segundo, Calif., satellite TV provider will look to Mr. White, who will later retire from PepsiCo as the head of its international business, to lead it through increasingly competitive waters. Mr. White will take over Jan. 1.
"I look forward to working with the talented management team and employees as we continue to grow the business, delight the customer and further distance DirecTV's leadership position," Mr. White said in a statement.
Mr. White, who was once considered a potential successor to lead Pepsi, was seen as the most qualified candidate. The Wall Street Journal reported in September that Mr. White was retiring from PepsiCo by year-end.
DirecTV hasn't skipped a beat since Chase Carey left the CEO position to become top lieutenant to News Corp. Chairman and Chief Executive Rupert Murdoch in June. The appointment comes two weeks after the company reported a third-quarter profit of $366 million amid continued subscriber growth.
Mr. White will face challenges in maintaining the company's course. DirecTV has remained relatively protected from the economic downturn because it was ahead of its competitors in offering high-definition programming and the digital video recorder, features that have proven to be attractive to consumers even as they tighten their belts. It has primarily picked off customers from the cable providers, as well as rival satellite player Dish Network Corp.
But the company faces a growing threat from the telecommunications companies. On one hand, DirecTV partners with many of them to sell its television service along with the phone company's Internet, voice and wireless services. On the other, Verizon Communications Inc. and AT&T Inc.—both DirecTV partners—are focused on pushing their own television services.
Dish, meanwhile, has shored up much of its customer service issues and has picked up steam in the last two quarters. The company added 241,000 net subscribers in the third quarter as more customers stuck to its service.
DirecTV, in comparison, added 136,000 U.S. subscribers in the same period as the company sought to weed out customers looking for more discounts or who tended to call up with service problems. As a result, the company's profit margins and average revenue per user rose from a year ago.
DirecTV is slated to merge with majority shareholder Liberty Entertainment once the unit is spun off from parent Liberty Media. The deal, designed to free up DirecTV to strike partnerships and pursue other strategic deals, is expected to close before the end of the year.