DIRECTV 2007 Annual Report Download - page 14

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THE DIRECTV GROUP, INC.
•Strong Customer Service. We have attained top rankings in customer satisfaction studies for our
industry. For example, in 2007 DIRECTV was ranked ‘‘Highest in Customer Satisfaction Among
Satellite/Cable TV Subscribers’’ in the Southern, Western and Eastern regions of the United
States, according to the J.D. Power and Associates 2007 Residential Cable/Satellite TV
Customer Satisfaction StudySM. The three regions where DIRECTV ranked highest encompass
43 of the 48 contiguous states. In addition, we have been rated ahead of every cable company in
customer service for seven consecutive years in the University of Michigan’s American
Consumers Satisfaction Index. We believe that providing high-quality customer service is an
important element in minimizing subscriber disconnection, or churn, and attracting new
subscribers.
•Valuable Orbital Slots and Satellite-Based Technology. We believe our regulatory authorization to
use desirable orbital slots and broadcast spectrum helps sustain our position as one of the
leading companies in the MVPD industry. The Federal Communications Commission, or FCC,
has designated three direct broadcast satellite, or DBS, orbital slots in the Ku-Band spectrum
that provide full coverage across the 48 contiguous states of the United States, often referred to
as CONUS coverage. Within these three orbital slots, there are 96 assigned DBS frequencies.
We hold licenses to broadcast our services from 46 of these 96 DBS frequencies. The FCC is
currently considering licensing additional DBS slots for satellites that are sometimes referred to
as ‘‘tweeners’’ which would provide CONUS coverage. See ‘‘Government Regulation—FCC
Regulation Under the Communications Act’’ and ‘‘Risk Factors—The ability to maintain FCC
licenses and other regulatory approvals is critical to our business’’ for more information related
to these types of slots and satellites.
In addition, we hold licenses in three orbital slots (99west longitude, or WL, 101WL, and
103WL) in the Ka-Band spectrum. The satellites that have been and will be launched into
these orbital slots will substantially increase our channel capacity, allowing us to provide the
most HD programming currently available across the United States. We also have obtained
approval from the FCC to transmit our signal in the Ku-Band from one of our satellites that has
been stationed at a temporary orbital location at 72.5WL and from leased capacity on a
satellite at 95WL.
Our satellite-based service provides us with many advantages over ground-based cable television
services. We have the ability to distribute hundreds of channels to millions of recipients
nationwide with minimal incremental infrastructure cost per additional subscriber. In addition,
we have comprehensive coverage to areas with low population density in the United States and
the ability to quickly introduce new services to a large number of subscribers.
Business Strategy
Our primary goal is to provide subscribers with the best television experience in the United States.
Our strategy focuses on offering subscribers differentiated and exclusive content, attaining leadership in
technology, and enhancing sales, marketing, distribution and customer service.
•Offer Differentiated and Exclusive Content. To fulfill our goal, we believe we must have the most
extensive collection of valuable programming services available. We plan to further enhance our
programming service by continuing to expand our HD programming, creating compelling new
programming, launching new interactive services and video-on-demand, or VOD, and expanding
international programming.
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