An expected round of predatory pricing would further drain the coffers of DirecTV, which has yet to turn a profit. Roughly 68 million American households subscribe to cable, and complaints about the service are legion. Combine that dissatisfaction with satellite's broader offering of programming and you've got a fairly persuasive pitch. Cable has inertia going for it, as well as the commonly held consumer notion that satellites are for Buck Rogers rather than John Q. Public. That will have to change if DirecTV really wants to challenge cable and changing it will require dropping prices while spending a lot more on marketing.
Cable also has the advantage when it comes to high-speed Internet connections.
Given the agonizingly slow rollout and limited availability of DSL, cable modems will help the industry retain customers. DirecTV hopes to counter that with last month's acquisition of DSL provider Telocity, as well as the continued rollout of its DirecPC satellite link. Cities with diverse populations, such as Los Angeles and Miami, can have as many as 10 such channels. As a result, the hordes of Buffy, the Vampire Slayer fans will stick with cable for the time being. Other than the paramount question of ownership, one of the unknowns at DirecTV is whether sales will drop with the economy.