DIRECTV 2005 Annual Report Download - page 16

THE DIRECTV GROUP, INC.
of December 31, 2005, DIRECTV U.S. had over 15.1 million subscribers with average monthly
revenue per subscriber, or ARPU, of $69.61.
•DIRECTV Latin America. DIRECTV Latin America, or DTVLA, which is comprised of a group
of companies that primarily includes our approximate 86% owned subsidiary, DIRECTV Latin
America, LLC, or DLA LLC, and its consolidated local operating companies, or LOCs, is a
leading provider of DTH digital television services throughout Latin America. As of
December 31, 2005, DTVLA had approximately 1.6 million subscribers in 27 countries
throughout the region of which approximately 85% are located in Brazil, Argentina, Venezuela
and Puerto Rico. On October 8, 2004, we entered into a series of transactions with News
Corporation, Grupo Televisa, S.A., or Televisa, Globo Comunicacoes e Participacoes S.A., or
Globo, and Liberty Media International, Inc., or Liberty, which we refer to as the Sky
Transactions. The Sky Transactions are designed to strengthen the operating and financial
performance of DTVLA by consolidating the DTH platforms of DTVLA and Sky Latin America
into a single platform in each of the major territories served in the region. See ‘‘DIRECTV
Latin America’’ below for more information related to these transactions.
DIRECTV U.S.
DIRECTV U.S. provides over 15.1 million subscribers with access to hundreds of channels of
digital-quality video pictures and CD-quality audio programming that are transmitted directly to its
subscribers’ homes or businesses via high-powered geosynchronous satellites.
DIRECTV U.S. believes it provides one of the most extensive collections of programming
available in the MVPD industry. DIRECTV U.S. currently distributes to its subscribers more than
1,500 digital video and audio channels, including about 130 basic entertainment channels, 31 premium
movie channels, over 33 regional and specialty sports networks, an aggregate of over 1,100 local
channels, approximately 70 Spanish and other foreign language special interest channels, and
approximately 50 pay-per-view movie and event choices. Although DIRECTV U.S. distributes over
1,100 local channels, a subscriber generally receives only the local channels in the subscriber’s home
market. As of December 31, 2005, DIRECTV U.S. provided local channel coverage to approximately
141 markets, or about 94% of U.S. television households.
In addition, DIRECTV U.S. provides ten national high-definition, or HD, television channels as
well as network HD programming in certain local markets. Beginning in the fourth quarter of 2005,
DIRECTV launched local HD channels in 12 of the largest markets and expects to introduce local HD
channels to at least 36 markets covering approximately 57% of U.S. television households in the first
half of 2006. By 2007, with the expected launch of two additional satellites, DIRECTV U.S. expects to
have the capacity to offer local HD channels to nearly all U.S. television households.
DIRECTV U.S. also provides premium professional and collegiate sports programming such as the
NFL SUNDAY TICKET↩ package, which allows subscribers to view the biggest selection of NFL
games available each Sunday during the regular season. Under its contract with the NFL, DIRECTV
U.S. has exclusive rights to provide this service through 2010, including rights to provide related HD
interactive and mobile services.
To subscribe to the DIRECTV↧ service, subscribers acquire receiving equipment from DIRECTV
U.S. or through one of DIRECTV U.S.’ national retailers as well as independent satellite television
retailers, dealers and regional Bell operating companies, or RBOCs. On March 1, 2006, DIRECTV
U.S. introduced a set-top receiver lease program for new and existing subscribers.
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