D IRECTV I N THE P HILIPPINES A Foreign Direct Investment Analysis By: Rory Schneider, Mark...
Transcript of D IRECTV I N THE P HILIPPINES A Foreign Direct Investment Analysis By: Rory Schneider, Mark...
DIRECTV IN THE PHILIPPINES
A Foreign Direct Investment Analysis
By:
Rory Schneider, Mark Zabierek, Stephen Pokora, Kent Taylor, Brett
McLaren
DIRECTV at a glance…
2009 Results• $21.6B in Sales• $2.4B in FCF
Key Metrics• Growth in Subscriber Base• Growth in ARPU
DIRECTV U.S.
2009 Subscriber Base18.5 Million (0% growth)
2009 ARPU$85.48 (1.9% Increase)
DIRECTV Latin America
2009 Subscriber Base6.5 Million (11% growth)
2009 ARPU$57.12 (3.7% Increase)
Where do we go from here???
Philippines
Key Highlights• Island Country• Minimal Cable
Infrastructure• 97M Population• Young, Educated• Consumer
Economy• 74% TV
Penetration• Marketing Friendly
Philippines
WTO Membership
1995
Electricity Infrastructure
Initiative
Open to Investment
GOVERNMENT & POLICIES
40%Maximum
Stake!
.
.
.Corruption!
30%
…“Filipino First”
Premier Content
40% Stake
INVESTMENT OPTION
CUSTOMER…
Limited Purchasing
Power
High Proportion of Consumer Spending
Low ARPU
RECOMMENDATIONS
1. Philippines Ideal Hub for SE Asia
2. Consider more favorable suitors in the region
3. Establish DIRECTV SE Asia and begin incremental expansion
$300 M
A Single Satellite can provide coverage to the entire SE Asian
Region
Philippines
QUESTIONS ?