Cable TV
US Federal Trade Commission sues DirectTV for cheating consumers
NEW DELHI: The broadcasting giant DirecTV is facing a lawsuit from American Federal Trade Commission (FTC) alleging that the pay TV operator has deliberately misled millions of subscribers about the costs of viewing its programme line up.
The action has started at a Federal Court in San Francisco.
The FTC states that DirecTV “deceptively advertised” an apparent one-year subscription contract but failed to tell consumers that viewers would be committing to a two-year contract.
The FTC says a large portion of DirecTV’s subscribers could be affected. Moreover, the second year was going to be much more expensive for viewers, and that hefty cancellation charges would be levied if subscribers cancelled.
FTC Consumer Protection Bureau head Jessica Rich said, “We require businesses to be truthful and to give consumers the information they need to make informed choices about goods and services. Companies cannot hide important information from consumers to trick them into buying goods and services — and that’s what we allege DirecTV did.”
DirecTV denies any deception, saying that it has worked hard to make the ordering process as clear as possible, and that either in writing or via a web-based order or verbally if ordered over the phone, all its terms and conditions are explained.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
