Weather Channel Begs Customers to Switch

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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Each day that passes, The Weather Channel continues to plead  for its viewers to switch from DIRECTV (NASDAQ: DTV), which has stopped running its content, over to carriers Dish, Optimum, or xfininty. “Pledge to switch” is a message on its website.  This website is increasing the center of The Weather Channel’s viability. But DirecTV continues to resist negotiations, increasing The Weather Channel’s big problem.

Perhaps The Weather Channel believes it can appeal to DIRECTV shareholders, at least as a means to make them worry about the satellite provider’s subscriber base:

Research conducted since The Weather Channel was removed from the lineup on DIRECTV after the satellite provider refused to come to a market-based contract renewal, underscores the importance of the life-saving, most-trusted channel to its viewers. Eight percent of those polled said they would switch providers in the wake of the loss of The Weather Channel. An additional 22 percent of DIRECTV subscribers said they would strongly consider a switch. The polling results among DIRECTV subscribers, when translated to DIRECTV’s full subscriber base of more than 20 million households, suggests the number could add up to a loss of more than 1.6 million subscribers.

Of course, intent is not the same as action. It is hard to imagine millions of DIRECTV subscribers abandoning the hundreds of other channels to come to the aid of one. The Weather Channel could have over played its hand.

The age of broadband has harmed The Weather Channel as well. Its site had 61.2 million unique visitors on desktop computers in December, according to comScore. This does not include millions of others who access the site on tablets and smartphones. The TV has become more and more obsolete as the medium for instant information. This change undermines The Weather Channel’s ability to force DIRECTV to act in the financial self interest of The Weather Channel.

According to The Wall Street Journal,

DirecTV CEO  chief executive Mike White says the Weather Channel is worth only “one quarter of the price” the channel wants the satellite operator to pay, underlining how far apart the companies are in the fee dispute that has blacked the channel out on the satellite service for 10 days.

Ten days is a long time, particularly when The Weather Channel customers have so many options.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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