DIRECTV 2003 Annual Report Download - page 4

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Late last year, News Corporation completed the acquisition of a 34% interest in Hughes
Electronics Corporation, which was recently renamed The DIRECTV Group, Inc. The goals
for this business are quite simple. We want DIRECTV to be the best television experience
in the world and The DIRECTV Group to realize its value potential for our shareholders.
News Corporation and the new management team will bring a unique mix of expertise,
assets and vision that will enable us to accomplish these goals.
DIRECTV has great strengths that we will capitalize on as we drive the business forward.
DIRECTV is the leading brand in pay television—it is a market leader in quality, service and
technological advances. It has distinct programming such as NFL SUNDAY TICKET™ and
unique strengths in important distribution channels.
As the second largest pay television distributor in the United States with more than 12.2
million subscribers, DIRECTV’s growing customer base provides opportunities for
significant economies of scale. We ended 2003 with excellent operating momentum—for
example, in the fourth quarter, both subscriber growth and customer churn were the
best they have been in over four years. However, even with its competitive advantages
and strong operating performance, DIRECTV has only just scratched the surface of its
potential.
The strategy we are implementing to take DIRECTV forward has several key components.
First, we will become a leader in bringing new and exciting technologies to our customers.
Today, this means the best in digital video recorders (DVRs) and high definition television.
In the future, this means wireless technologies, integration of television and broadband,
and set-top boxes that will have applications for music, games and photography. In the
A MESSAGE
TO SHAREHOLDERS
Rupert Murdoch
2