RadioShack Drops DirecTV

[Gregg Lengling]

RadioShack confirmed that it stopped selling DirecTV services and equipment at its stores effective Dec. 31.

RadioShack spokesman Charles Hodges said the retailer has entered into an exclusive contract with EchoStar for sale of DISH Network. He wouldn't offer specifics, but said the EchoStar deal is a multi-year agreement.

In 2002, RadioShack agreed to carry DISH Network along with DirecTV. In the past, it also sold PrimeStar.

In response, DirecTV said, "RadioShack was not a significant part of our business for most of 2003 and not being sold in RadioShack will not impact our performance this year."

The company added, "RadioShack was a good retail partner for us, but the business was not working the way we would have liked and we weren't able to find a solution. For example, we continued to have issues with RadioShack's inability to sell DirecTV in rural/NRTC areas.

"DirecTV has aggressively expanded its sales distribution channels over the years and we have seen a significant improvement in the sales performance of our other consumer electronic store chains," DirecTV said.