Strategic positioning or diseconomies of scale???

Directv has always strived to be an innovator in digital television broadcasting and has been able to so so by differentiating the services that it offers.  Directv has been able to compete with the likes of Dish and local cable providers due to its superb HD quality and its contracts that it holds with sports organizations such as the NFL.  Now Directv is starting to develop the position strategy of focused differentation in the market place.  Directv will accomplish this by offering an Ultra HD service to its customers.  Although the implementation of this new technology may be several years into the future, Ultra HD will keep Directv a step ahead of rivals like Dish and local providers like Time Warner and Comcast.  By keeping up with the latest technological advances in digital broadcasting, Directv will be able to maintain a large customer base and provide avenues for growth in the future. 

One area that concerns me with Directv trying to gain market share in areas of the world such as Latin America and South America is that they will experience diseconomies of scale.  As they become a major player in these markets I believe their total costs will definately increase as they provide more digital services to these less industrialized countries.  The fact of the matter is that customers in these areas will not be able to pay the same rates as people in the US.  I believe as they expand in these types of markets, higher costs will be placed on their customers that can afford it, such as the US customers, in order to make up for the lost profits.