DirecTV in the News

DirecTV to Implement Price Increase for New Customers Beginning May 25

Prices Remain Unchanged for Existing Customers

El Segundo, CA, Mar 16, 2000 -- DIRECTV, Inc., provider of the nation’s leading digital television service, announced today it will implement a price increase of $2 per month for all of its programming packages only for new customers who activate DIRECTV® programming beginning May 25. Prices remain unchanged for the more than 8.2 million existing customers of the high-power DIRECTV service and medium-power PRIMESTAR By DIRECTV service.

The new prices are a result of higher programming costs DIRECTV has been paying in order to carry many of the networks and services it offers, and investments DIRECTV has made to expand its service and upgrade its operations. DIRECTV’s programming costs have risen more than 35 percent since 1997. With the addition of its second broadcast center, the launch of its fifth high-power satellite and the opening of six permanent new customer call centers in the past year, DIRECTV’s costs have also risen in areas such as broadcast operations and customer service.

"When we launched DIRECTV six years ago, we redefined the home entertainment experience, and we have expanded our programming lineup every year to give consumers the best multichannel entertainment service available," said Bill Casamo, executive vice president, DIRECTV, Inc. "We have looked at virtually every new programming service available; in fact, since 1997, we have added 29 new channels to our programming lineup and last year we expanded our satellite capacity to offer our customers more channels and entertainment options including local channels in 23 markets and high definition programming. This year, and in the years to come, we will continue to aggressively expand our service offerings with the introduction of new channels and the launch of compelling new interactive and enhanced TV services.

"This price increase is significantly lower than price increases implemented by cable operators over the last several years. Even with this modest price increase, DIRECTV continues to offer the best value in multichannel television."

Prices for pay-per-view movies, local channel packages and a la carte premium movie channels remain unchanged.