MDU Communications Begins Roll Out of New DIRECTV Program Designed Specifically for the Multi-Dwelling Unit Market
MDU Communications, a leading end-to-end provider of DIRECTV(R) digital satellite television programming and high speed broadband Internet services to the 26 million United States residential multi-dwelling unit ("MDU") market, today announces that it has entered into an agreement with DIRECTV, Inc. for the roll out of Bulk/Choice Advantage ("BCA"), an important new satellite video program specifically tailored to capture and increase penetration into the MDU market. This new agreement signifies DIRECTV's continued response and commitment to the unique technological, marketing and demographic challenges of the multi-family market.
The BCA program was developed in response to multi-dwelling unit property owners wanting to provide their residents with a high quality basic video package and also the option to individually and cost effectively upgrade to the full array of DIRECTV programming services.
"Our new Bulk/Choice Advantage program will provide property owners with the flexibility to offer their residents entertainment programming options and at the same time provide an easy way to upgrade so they can access the full DIRECTV digital experience," said Daren Benzi, vice president of Sales Development and Strategy, DIRECTV, Inc. "We believe the BCA program will significantly expand new business opportunities for our MDU system operators and we are pleased to launch it with MDU Communications, a long-time, valued partner."
The BCA program bundles approximately 70 high quality DIRECTV individual programming channels (including local channels) into a DIRECTV approved private cable service package sold by the Company on a "bulk" basis to property owners for all residential units to access. For a nominal monthly fee, each individual resident can "upgrade" to the DIRECTV TOTAL CHOICE(R) programming package which offers more than 60 additional digital programming channels, as well as giving residents the ability to access all DIRECTV services including premium movie services, High Definition Television (HDTV), Pay Per View movies and events, NFL SUNDAY TICKET(TM), foreign language programming, and more.
"The BCA program will greatly increase penetration rates in MDU properties because it can simultaneously capture residents who want simply a basic television service, as well as residents who demand more from their television viewing," said Sheldon Nelson, President of MDU Communications. "It is a well designed program aimed specifically at a large segment of the multi-family market previously served by franchised cable television providers, and its introduction has been met with a very positive response by property owners, developers and residents," added Nelson.
The new BCA program has been test launched with much success to select MDU Communications' client property owners in the Northeast, Southeast, and Midwest. In the Northeast, two prominent clients have signed access agreements with the Company for BCA deployment to certain properties within their respective portfolios. Today, the Company provides DIRECTV services to approximately 2,500 residents within these two portfolios, however should the initial BCA property launches prove successful, the Company expects to deploy the BCA program of DIRECTV services to many of the 42,000 residential units within these two portfolios. The Company will begin offering the BCA program to all of its existing clients and to prospective clients in the Northeast, Southeast and Midwest in January of 2005.
About MDU: MDU Communications International, Inc. (OTCBB: MDTV) is a leading provider of premium communication/information services, including digital satellite television and high-speed (broadband) Internet services, exclusively to the United States multi-dwelling unit (MDU) marketplace - estimated to include 26 million residences. Through its wholly owned subsidiary, MDU Communications (USA) Inc., MDU Communications delivers DIRECTV(R) digital satellite television services and high-speed (broadband) Internet systems and is committed to delivering the next generation of interactive communication services to MDU residents. For additional information, please see www.mduc.com or contact Investor Relations.
