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NEW YORK (TheStreet) - DirecTV (DTV) competes with satellite pay-TV providers like Dish Network (DISH) - Get DISH Network Corporation Class A Report, cable companies like Comcast (CMCSA) - Get Comcast Corporation Class A Report and Time Warner Cable (TWC) and telecom operators like AT&T (T) - Get AT&T Inc. Report and Verizon (VZ) - Get Verizon Communications Inc. Report in the pay-TV business.

Our price estimate for DirecTV stands at $42.51, which is in line with market price. We estimate that DirecTV generates about 64% of its stock value from U.S. satellite TV.

The pay TV industry has become increasingly competitive as consumers have undergone a shift in viewing habits. Competition exists not just from traditional players but also from new business models like those of


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, Hulu and



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iTunes. As more video content moves online, consumers not only have greater flexibility to watch content in terms of devices but also a wider choice as to which service platform to use.

It is increasingly necessary for pay-TV providers to evolve their services and differentiate themselves. DirecTV is one player that has had success in this regard. While cable operators have been losing subscribers and Dish has been struggling with growth, DirecTV has been rather successful in gaining subscribers.

While DirecTV's affluent subscriber base has been one reason why it has thrived during recession, the company's other unique features should aid the fight against increasing competition and facilitate market share growth in the U.S.

The modifiable chart below illustrates how various market share growth scenarios affect DirecTV's stock value.

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NFL Sunday Ticket

The NFL Sunday Ticket is a sports package that broadcasts NFL regular season games that are not available on local affiliates. In the U.S., the package is available exclusively to DirecTV, giving it a unique advantage and selling point. The NFL is one of the most popular domestic sports and maintains substantial viewership. It is consistently one of the most watched programs in the U.S.


DirecTV has taken steps to enhance its HD channel count and improve the multi-viewing experience for consumers through its partnership with Samsung to launch RVU-enabled TVs. We have recently examined in an


the potential long-term upside for DirecTV's investment in RVU technology.

Apart from its exclusive offerings and technological initiatives, DirecTV also maintains high standards for customer service, which should limit churn in its customer base going forward.

Is DirecTV's affluent customer base "stickier" than that of other service providers? Or are these subscribers equally likely to downgrade service plans or switch to other platforms? Let us know your thoughts by providing feedback in the comment box below.

See our full analysis for DirecTV stock



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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.