DIRECTV 2005 Annual Report Download - page 19

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THE DIRECTV GROUP, INC.
•Launch Enhanced and Interactive Services. DIRECTV U.S. believes that enhanced and
interactive services will become an important part of the DIRECTV subscriber experience.
For example, in 2005, DIRECTV U.S. launched three new DIRECTV Mix Channels (one
each for news, sports and kids) that enable subscribers to view up to six live channels in
each genre all on one screen. Also in 2005, DIRECTV U.S. launched several new services
such as local weather, horoscope, lottery and other interactive services. DIRECTV U.S. also
introduced Mix Channels and interactive services to the NFL SUNDAY TICKET package.
In July 2006, DIRECTV U.S. will begin a multi-year agreement with The YES Network and
MLB.com to offer the first-ever interactive television content for Major League Baseball on
YES Network broadcasts of New York Yankees regular season games. The interactive
programming offering will include live, up-to-the-minute statistics, box scores and
scoreboards, a bonus ‘‘StarCam’’ camera focusing on a particular star each inning and a
daily interactive game. DIRECTV U.S. intends to continue to expand its offerings of
interactive programming.
•Introduce Video-on-Demand Services. DIRECTV U.S. plans to introduce VOD services in
2006 for subscribers that have the new DIRECTV Plus↦ DVR. In 2005, DIRECTV U.S.
announced an agreement with Fox to bring viewers the best of FX and FOX Broadcasting
on-demand. In an industry first, viewers will get a ‘‘first look’’ at prime time hits from FX a
full 24-48 hours prior to their initial broadcasts for $2.99 and will have post-air access to
some of FOX Broadcasting’s most popular series for just 99 cents for six to seven days
following their national broadcast. Also in 2005, DIRECTV U.S. announced an agreement
with NBC Universal that will give DIRECTV subscribers the top programs of NBC and its
cable entertainment networks, USA, SCI FI and Bravo, hours after they air, commercial
free, for 99 cents. Later in 2006, with the introduction of the next generation of the
DIRECTV Plus HD DVR, DIRECTV U.S. subscribers will be able to choose from a library
of thousands of movies and download the programming through a broadband connection.
This will allow DIRECTV U.S. to offer a library with thousands of VOD programs to its
subscribers.
•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 2005, DIRECTV U.S. added a total of 26 new international
channels and now offers approximately 70 international channels. DIRECTV U.S. believes
it has leading programming packages in the following languages: Spanish, Vietnamese,
Russian, Korean, Filipino, Cantonese and Hindi.
•Technology Leadership. DIRECTV U.S. believes that technological leadership will be important
to its ability to introduce services that are easy to use and subscriber-friendly and also reduce
costs. DIRECTV U.S. believes that advancements in its technology will lead to enhanced digital
video recorders, or DVRs, and HD equipment, a whole-house entertainment solution, and
reduced signal theft.
•Enhance Digital Video Recorders and High-Definition Equipment. A cornerstone of
DIRECTV U.S.’ strategy is to use set-top receivers that incorporate DVR and HD
technology. DVRs digitally record television programs without videotape and allow
subscribers 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. In the fourth quarter of 2005, DIRECTV U.S. introduced the
DIRECTV Plus DVR, its new DVR that provides its subscribers with advanced features
including interactive services, VOD and increased storage capacity. Also in late 2005,
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