DirecTV, KVH Ink Multiyear Marketing Deal
Officials from DirecTV Inc. [DTV] and KVH Industries Inc. [KVH] said today that the companies have signed a multi-year agreement that allows customers to receive DirecTV satellite television services in cars, sports utility vehicles, minivans and other passenger vehicles equipped with mobile video systems. Under the terms of the agreement, DirecTV has authorized KVH to solicit subscriptions for DirecTV programming that will be received by KVH’s new TracVision A5 low-profile antenna. In return, KVH has agreed to work exclusively with DirecTV in the passenger car market for the duration of the agreement. The length of the agreement and the financial terms were not disclosed.
In conjunction with this agreement, KVH officials said the company is launching a $1 million national advertising campaign to boost awareness of the mobile DirecTV service and to boost sales of the TracVision A5, which KVH officials said were slower than expected through the first six months of 2004.