Following the filing of a complaint by Comcast Corporation CMCSA with the National Advertising Division (NAD), DIRECTV DTV will have to drop the Rob Lowe campaign from its channels.
The advertising campaign featuring actor Rob Lowe claims that the company’s service provides 99% signal dependability, superior sound and picture quality than cable, and also up to 1080p HD programming. Through the ad, DIRECTV also asserts that it offers more sports programs and quicker customer service than its peers.
NAD, part of the Council of Better Business Bureau, recently stated that Comcast’s complaint against DIRECTV is valid in most of the cases. Meanwhile, the regulatory body confirmed that DIRECTV’s claims of providing channels with 99% signal dependability and 1080p HD programming are legitimate. However, NAD sided with Comcast on the other issues.
Reportedly, DIRECTV has buried the hatchet and moved forward with another ad campaign.
DIRECTV, the largest U.S. satellite TV operators, currently has a Zacks Rank #3 (Hold). The company reported strong financial numbers in the fourth quarter of 2014 wherein both the top and the bottom line surpassed the Zacks Consensus Estimate. Moreover, the company has become the first multi-channel video provider to offer 4K Ultra HD programming to subscribers directly. DIRECTV has initiated a massive marketing drive to attract customers to its exclusive programming. Such strategies have helped the company gain 903,000 new subscribers in 2014.
Notably, the FCC has paused its shot clock once more on the pending review of the merger between AT&T, Inc. and DIRECTV.
Stocks to Consider
Better-ranked stocks in the same space include DigitalGlobe, Inc. DGI and EchoStar Corp. SATS. Both these stocks hold a Zacks Rank #2 (Buy).
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