DIRECTV 2003 Annual Report Download - page 13

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THE DIRECTV GROUP, INC.
strength of its brand is an important factor in its ability to attract new customers. In addition, DIRECTV
U.S. believes its recognized brand name enhances its ability to secure strategic alliances with
programmers, distributors and other technology and service providers.
•High-Quality Digital Picture and Sound. DIRECTV U.S.’ video and audio programming is 100%
digitally delivered, providing customers with digital-quality video pictures and CD-quality sound. This
compares favorably with cable providers that continue to offer popular programming in an analog
format and only offer a limited selection of digital channels for an additional fee.
•Superior Customer Service. DIRECTV U.S. has been recognized for attaining top rankings in studies
measuring customer service performance for the industry, including being ranked “#1 in Customer
Satisfaction Among Satellite and Cable TV Subscribers Two Years in a Row” according to J.D. Power
and Associates 2002-2003 Syndicated Residential Cable/Satellite TV Customer Satisfaction Studiessm.
DIRECTV U.S. believes that providing high-quality customer service is an important element in
reducing subscriber disconnection, or churn rate, and attracting new subscribers.
•Valuable Orbital Slots and Satellite-Based Technology. DIRECTV U.S. believes its regulatory
authorization to use desirable orbital slots and broadcast spectrum helps sustain its position as one of the
leading companies in the MVPD industry. The FCC has designated three DBS orbital slots that provide
full coverage across the 48 contiguous states of the U.S. Within these three orbital slots, there are 96
assigned DBS frequencies. DIRECTV U.S. holds licenses to broadcast its services from 46 of these 96
DBS frequencies. Any of these remaining frequencies that DIRECTV U.S. does not hold licenses for are
currently used by other providers.
DIRECTV U.S.’ satellite-based service provides it with many advantages over ground-based cable
services, including the ability to distribute hundreds of channels to millions of recipients nationwide
with minimal incremental cost per additional subscriber, comprehensive coverage to areas with low
population density in the U.S. and the ability to quickly introduce new services to a large number of
customers.
•Substantial Channel Capacity and Programming Content. DIRECTV U.S. currently distributes more
than 850 digital video and audio channels, of which it distributes over 325 to the 48 contiguous states of
the U.S. and the remainder are regional and local channels. As a result of its significant channel
capacity, DIRECTV U.S. believes it is able to deliver to its customers one of the widest selections of
programming available today in the U.S., including exclusive programming such as the NFL SUNDAY
TICKET package.
•Association with a Leading Global Media Company. With News Corporation, a leading global media
company, owning 34% of the outstanding common stock of the Company, DIRECTV U.S. is associated
with a company that has unrivaled experience in developing and managing successful pay-television
platforms around the world. By bringing an expanded vision to the Company and DIRECTV U.S.,
DIRECTV U.S. believes that its association with News Corporation will enable it to grow faster than it
could have previously.
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