DIRECTV 2003 Annual Report Download - page 15

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THE DIRECTV GROUP, INC.
•Enhance EPG. In addition, DIRECTV U.S. expects to develop an enhanced on-screen EPG that
will become an important part of the viewer experience. For a service as robust as DIRECTV’s,
DIRECTV U.S. believes it is essential for customers to be able to navigate easily through the
hundreds of channels that are offered.
•Introduce New Interactive Services. Interactivity will become an important part of the DIRECTV
customer experience going forward and the plan is to develop interactive services that in many cases
will use the DVR for true content-on-demand functionality. In addition, DIRECTV U.S. plans on
offering an array of other interactive services that focus on weather, news, sports, and more.
•Enhanced Sales and Marketing, Customer Service, and Distribution and Standardized
Equipment. In addition to the goal of having technology leadership and compelling content,
DIRECTV U.S. also intends to drive subscriber growth by continuing to improve sales and marketing
along with customer service and distribution.
•Enhance Sales and Marketing. DIRECTV U.S. expects to achieve continued strong subscriber
growth through aggressive marketing and promotion that will exploit the strength of the DIRECTV
brand. In addition, DIRECTV U.S. believes it can increase demand for its service by targeting key
market niches, such as ethnic and multi-dwelling unit households. While DIRECTV U.S. expects to
maintain its strong relationships with core retailers and dealers, it also plans to continue to develop
and strengthen its direct sales channels and recently announced strategic marketing alliances with
Regional Bell Operating Companies, or RBOCs, such as Bell South and Verizon.
•Improve Customer Service. DIRECTV U.S. expects to implement initiatives that will provide
improved levels of customer service. For example, DIRECTV U.S. intends to take more of a
“hands-on” approach and exert more control in managing all aspects of the DIRECTV customer
experience, including the point of sale, installation and on-going customer service. As such,
DIRECTV U.S. expects to develop selected in-house service capabilities to compliment its
relationship with key third-party service providers.
•Enhance Distribution and Standardize Equipment. DIRECTV U.S. intends to implement a new
hardware and distribution strategy in 2004 that is designed to facilitate the purchase and distribution
of DIRECTV equipment from its manufacturers to retailers. In addition, DIRECTV U.S. plans to
offer its customers a standardized and more user-friendly DIRECTV experience. Over the course of
the year, authorized manufacturers of DIRECTV equipment will migrate to a new standardized
specification that DIRECTV U.S. designed to improve the overall DIRECTV customer experience.
Under this new strategy, the DIRECTV brand will become the prominent brand on all DIRECTV
equipment, replacing the various consumer electronic brand names historically shown on the
DIRECTV equipment.
Competition
DIRECTV U.S.’ industry is highly competitive. Its competition includes companies that offer video, audio,
interactive programming, telephony, data and other entertainment services, including cable television, wireless
companies, DBS companies and companies that are developing new technologies. Many of DIRECTV U.S.’
competitors have access to substantially greater financial and marketing resources. DIRECTV U.S. believes that
the quality and variety of video, audio and interactive programming, quality of picture, access to service,
availability of a broadband Internet service, customer service and price are the key elements for gaining and
maintaining market share.
•Cable Television. DIRECTV U.S. encounters substantial competition in the MVPD industry from
cable television companies. Most cable television operators have a large, established customer base, and
many have significant investments in companies that provide programming content. According to the
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