Could I be wrong on DirecTV (NASDAQ: DTV)? Or is Warren Buffet wrong?

A few days ago I shared my thoughts on DirecTV customer service. I was not happy and thought the company was probably headed down the toilet.

Well… Since then Warren Buffet, the legendary investor, has announced that he is increasing his stake in DirecTV by five times to $1 Billion. And… The company has released some incredible earnings results.

The company posted a 16% jump in fourth quarter profits and is adding to its number of subscribers while cable operators are losing subscribers.

Sure… The company can offer some great deals to lure people away from their current cable company but can they hold onto the customers once those great rates expire and people realize how much the service really costs. And that doesn’t count the extras they might tack onto your bill and how channels you thought you were paying for disappear overnight.

I stand by my opinion about DirecTV.

Between their questionable business practices and pressure from other entertainment choices this company will probably start to feel some pain in a few years if not sooner.

So why did Warren Buffet increase his holding in DirecTV?

Even the best baseball player has a bad day.  As hundreds of thousands of DirecTV subscribers realize what they are really paying they will call their cable company and hop back over there.


Because DirecTV owns the skys do they think they own your living room?

Get to the fallout shelter... It's SPutnik!

The space race started back on October 4th 1957 when the Russian launched the Sputnik satellite. This 184 pound chunk of metal and electronics scared the snot out of people. The fear was that from this platform in the sky the Ruskies could launch all sorts of attacks on us.

Luckily for us that wasn’t true.

But here we are over 50 years later and we are being attacked from the sky. The real enemy is DirecTV!

But there’s hope….

If you are a DirecTV user you may have found out to your dismay that as of last Thursday there were all kinds of price hikes and channel reshuffles. Channels you got last Monday you might not have on Thursday.

Last time I checked when you sign up for something it should stay the same. If I order a McDonald’s Big Mac with two patties it’s not cool if McDonald’s decides somewhere between the grill and the paper bag to only put one patty in there.

But this is exactly what DirecTV does.

Quick hide... It's DirecTV!

I believe they don’t get it that this whole video entertainment business is collapsing in on them and this is definitely not the bes time to alienate customers with these kind of attacks.

Remember when we used to wear watches, use travel agents, and shop at an actual brick and mortar book stores?

In this age of instant, on demand, video programming for free or very low price why do we need DirecTV?  When you surf the channels most of the programming seems to be just filler. Like cheese doodles for the brain. It might look good at first but they are just empty calories.

DirecTV can cost you north of $75 a month.

Most of the good programs are probably free on Hulu or you can pay $7.99/Month for Hulu+. Along with the bazillion of movies on Netflix and Amazon Prime you probably have enough video entertainment to take up most of your waking and sleeping hours.

You say you like to watch Mad Men of the Walking Dead. You don’t need DirectTV for that. for $1.99 per episode you can get them from iTunes or Amazon the next day.

For $75 a month that is a lot of downloads of just what you want to watch when you want to watch it.

This should be a warning to DirecTV… Wake up and start treating your customers better or those satellites might all go dark when everyone decides to stop putting up with your bad behavior and get their video entertainment elsewhere.

P.S. I will be writing a letter to the bosses over at DirecTV to see if they care.