DIRECTV 2006 Annual Report Download - page 17

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THE DIRECTV GROUP, INC.
•Expand High-Definition Programming. We believe that having the most comprehensive
offering of HD programming will provide us with a significant competitive advantage in a
market segment that is expected to experience continued rapid growth. We will have the
capacity to offer the most extensive HD programming upon the successful launch of
DIRECTV 10 in mid 2007 and DIRECTV 11 in early 2008. With these satellites, we will be
capable of broadcasting more than 1,500 local and 150 national HD channels to nearly all
U.S. television households. Subscribers receiving local HD channels will generally only
receive such channels in their home market.
•Offer Exclusive Content and Create Compelling New Programming. We offer content which is
not offered by other MVPD providers such as NFL SUNDAY TICKET, which allows
subscribers to watch up to 14 games each week, most in HD. We have also recently signed
agreements to be the exclusive MVPD provider of NCAA MEGA MARCH MADNESS.
DIRECTV customers purchasing the NCAA MEGA MARCH MADNESS package receive
up to 37 out-of-market broadcasts, including those in HD, from the first three rounds of the
NCAA men’s basketball tournament. We expect to continue to launch new programming
that will differentiate us from the competition. For example, in 2006, we launched The 101,
a channel dedicated to the broadcast of exclusive content including series such as Project
MyWorld and CD USA, and concert performances by top-rated artists. Also, along with key
strategic partners, we launched the Championship Gaming Series, a new professional video
gaming league that uses new technology to take viewers inside the actual game competitions.
•Launch Enhanced and Interactive Services. We believe that enhanced and interactive
services play an important role in the subscriber experience. For example, in 2005, we
launched several DIRECTV Mix Channels (one each for news and sports) that enable
subscribers to view up to eight live channels in each genre all on one screen. We also
introduced Mix Channels and interactive services for the NFL SUNDAY TICKET package.
In 2006, we offered the first-ever interactive TV coverage of Major League Baseball on the
YES Network’s broadcasts of New York Yankees regular season games. Also in 2006, we
teamed up with USA Network and the U.S. Tennis Association to provide the first-ever
interactive TV coverage of a major U.S. tennis event. In 2007, we introduced our exclusive
NASCAR HOTPASSservice, which offers five fully-produced channels allowing fans to
follow five different drivers each with multiple camera angles, real-time statistics and team
audio communications during NASCAR races.
•Introduce Video-on-Demand Services. We plan to introduce VOD services in 2007 for
subscribers that have the new DIRECTV PlusDVR and DIRECTV PlusHD-DVR. We
expect the service, named DIRECTV On-Demand, to have over 1,000 offerings of top
programming from the major broadcast and cable networks, as well as movies that can be
accessed from a customer’s receiver, and programming that will be downloaded through a
broadband connection.
•Expand International Programming. We continue to expand our international programming
offerings because we believe there is an underserved market for these services in the United
States. We now offer over 95 international channels in 18 languages. We believe we have
leading programming packages in the following languages: Cantonese, Filipino, Hindi,
Korean, Russian, Spanish, Ukrainian and Vietnamese.
•Technology Leadership. We believe that technological leadership will be important to our ability
to introduce services that are easy to use and subscriber-friendly and also reduce costs. We
believe that advancements in technology will drive subscriber demand for enhanced digital video
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