DIRECTV 2004 Annual Report Download - page 16

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THE DIRECTV GROUP, INC.
•
Enhanced Electronic Program Guide. DIRECTV U.S. believes it is essential for customers to be able to
navigate easily through the hundreds of channels that it offers. In 2004, DIRECTV U.S. introduced an improved
on-screen electronic program guide with enhanced features for viewing, navigating and searching for programs.
DIRECTV U.S. intends to continue to improve the electronic program guide by periodically downloading
(through its satellites) software enhancements.
•
Expand International Programming. DIRECTV U.S. plans to continue to expand its international programming
because it believes there is a large underserved market for these services in the United States. In 2004, DIRECTV
U.S. added a total of 15 new international channels and now offers over 50 international channels. In addition,
DIRECTV U.S. significantly enhanced its DIRECTV PARA TODOS service by adding new exclusive channels
and introducing more compelling programming packages.
•
Technology Leadership. DIRECTV U.S. believes that technological leadership will be important to its ability to
introduce services that are easy to use and customer-friendly and also reduce costs. DIRECTV U.S. believes that
advancements in its technology will lead to more standardized set-top receivers, enhanced DVRs, expanded high-
definition programming, a whole-house entertainment solution, improved channel compression and reduced signal
theft.
•
Standardize Set-top Receivers and Remote Controls. DIRECTV U.S. believes that a standardized set-top
receiver and remote control is an important contributor to customer satisfaction. In 2004, authorized
manufacturers of DIRECTV equipment began migrating to a new standardized specification that DIRECTV U.S.
designed to improve the overall DIRECTV customer experience. Under this new strategy, the DIRECTV brand is
the prominent brand on all DIRECTV equipment, replacing the various consumer electronics brand names
historically shown on DIRECTV equipment. In addition, by incorporating a common technology standard into
the design and manufacture of the DIRECTV set-top receivers along with other efficiencies, DIRECTV U.S.
believes it can drive manufacturing costs lower while bringing newly-developed or enhanced features and
functionality to market more quickly.
•
Enhance Digital Video Recorders. A cornerstone of DIRECTV U.S.’ strategy is to use set-top receivers that
incorporate DVR technology. These products digitally record television programs without videotape and allow
customers to pause and rewind live television, create their own television programming line-ups based on
personal preferences and watch one live program while simultaneously recording another. DIRECTV U.S.
currently has a non-exclusive arrangement with TiVo Inc. to provide DVR functionality in selected set-top
receivers. Beginning in 2005, DIRECTV U.S. intends to offer enhanced DVRs using technology from TiVo and
other third parties that provide DIRECTV U.S. the capability to offer interactive services and provide more
storage capacity for its customers.
•
Introduce DIRECTV Home Media Center. DIRECTV U.S. plans to introduce the DIRECTV Home Media
Center in late 2005. This whole-house entertainment solution will allow DIRECTV customers to access content,
which is expected to include digitally-recorded video, digital photos and digital music, seamlessly from all
television sets in a household. The DIRECTV Home Media Center, which will have the most technologically-
advanced DIRECTV receiver developed, will provide DVR functionality throughout the home and support high-
definition and standard-definition video signals.
•
Improve Channel Compression. DIRECTV U.S., along with several technology partners, is developing
advanced transmission and video compression capabilities to help it significantly expand all of its standard and
high-definition video offerings by allowing DIRECTV U.S. to provide more channels using the same transponder
capacity.
7