DIRECTV 2007 Annual Report Download - page 13

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THE DIRECTV GROUP, INC.
December 31, 2007, we provided local channel coverage in standard definition to approximately 143
markets, covering about 94% of U.S. television households. In addition, we provided high definition, or
HD, local channels in 68 markets representing 72% of U.S. TV households, as well as over 90 national
HD television channels. With the expected launch of one additional satellite, we expect to extend our
advantage of having the most HD channels in the industry.
We also provide premium professional and collegiate sports programming such as the NFL
SUNDAY TICKETpackage, which allows subscribers to view the largest selection of NFL games
available each Sunday during the regular season. Under our contract with the NFL, we have exclusive
rights to provide this service through 2010, including rights to provide related HD, interactive and
mobile services.
To subscribe to the DIRECTVservice, subscribers acquire receiving equipment from either us,
our national retailers, independent satellite television retailers or dealers, or regional Bell operating
companies, or RBOCs. Most set-top receivers provided to new and existing subscribers are leased
subsequent to the introduction of a lease program on March 1, 2006.
The receiving equipment consists of a small receiving satellite dish antenna, a digital set-top
receiver and a remote control, which we refer to as a DIRECTVSystem. After acquiring and
installing a DIRECTV System, subscribers activate the DIRECTV service by contacting us and
subscribing to one of our programming packages.
Key Strengths
•Large Subscriber Base. We are the largest provider of DTH digital television services and the
second largest MVPD provider in the United States, in each case based on the number of
subscribers. We believe that our large subscriber base provides us with the opportunity to obtain
programming on favorable terms and secure unique and exclusive programming. We also believe
that our large subscriber base contributes to achieving other economies of scale in areas such as
DIRECTV System equipment purchasing, customer service, broadcast operations and general
and administrative services.
•Leading Brand Name. Results from a study we commissioned in 2007 indicated that over 93% of
consumers in the United States are aware of the DIRECTV service. We believe the strength of
our brand name is an important factor in our ability to attract new subscribers. In addition, we
believe our recognized brand name enhances our ability to secure strategic alliances with
programmers, distributors and other technology and service providers.
•Substantial Channel Capacity and Programming Content. As a result of our significant channel
capacity, we believe we are able to deliver to our subscribers one of the widest selections of
local and national programming available today in the United States, including exclusive
programming such as the NFL SUNDAY TICKET package and international programming. In
addition, we have a substantial amount of capacity in the Ka-Band spectrum that provides us
with the capability to offer the most national HD programming currently available in the
industry.
•High-Quality Digital Picture and Sound, Including HD Programming. Our video and audio
programming is 100% digitally delivered, providing subscribers with digital-quality video and
CD-quality sound. We believe this compares favorably with cable providers that frequently offer
popular programming in an analog format and offer a limited selection of digital channels for an
additional fee. In addition, we believe we currently offer the nation’s most comprehensive
selection of HD programming.
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