Financial results from DirecTV and BigBand Networks demonstrated some of the harsh divisions that still exist as the economy struggles to recover. DirecTV posted nearly triple first quarter revenue gains ($568 million compared to $201 million) while BigBand said it was "disappointed" by first quarter revenues that dropped to $32.2 million compared to $43.9 million a year ago.
DirecTV also said it gained 100,000 net new customers, although last year it added 460,000. BigBand said its results were "impacted by slower order activities and lower gross margins as a result of product mix." Amir Bassan-Eskenazi, BigBand's president-CEO, promised that the company has "taken actions to preserve cash while we continue to invest in solutions for longer-term growth."
Part of DirecTV's longer term growth might be attached to targeted advertising. The satellite provider has partnered with rival Dish Network to sell interactive TV advertising nationally, which DTV CEO Michael White predicted "will be a terrific opportunity for advertisers... and a terrific addition for us this year."
DirecTV moves on MoCA, new set-tops
BigBand plays executive shuffle