DIRECTV 2007 Annual Report Download - page 15

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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 believe we
currently have the most extensive national HD programming in our industry and, with the
launch of DIRECTV 11 in early 2008, we expect to extend that advantage. As a result, we
will be capable of broadcasting approximately 1,500 local and 150 national HD channels to
nearly all U.S. television households. Subscribers receiving local HD channels will generally
only receive the channels broadcast 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 signed
agreements to be the exclusive MVPD provider of NCAA MEGA MARCH MADNESS.
We expect to continue to launch new programming that will differentiate us from the
competition. For example, we offer The 101, a channel dedicated to the broadcast of
exclusive content including series such as Passions and Project My World, 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. In 2008, we also plan to
launch additional new shows such as Rock & a Hard Place and Supreme Court of Comedy.
•Launch Enhanced and Interactive Services. We believe that enhanced and interactive services
play an important role in the subscriber experience. For example, for the NFL SUNDAY
TICKET package, we introduced Mix Channels that enable subscribers to view up to eight
live games all on one screen as well as interactive services. In 2007, we introduced our
exclusive NASCAR HOTPASSservice, which offers five fully-produced channels allowing
fans to follow four different drivers each with multiple camera angles, real-time statistics
and team audio communications during NASCAR races. Also in 2007, we introduced new
features and services to the MLB Extra Innings package such as the Strike Zone channel,
which moves live from game to game to allow viewers to see all the important action and
key match-ups. 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.
•Introduce Video-on-Demand Services. We plan to introduce VOD services in 2008 for
subscribers that have the new DIRECTV PlusDVR or DIRECTV PlusHD-DVR. The
service, named DIRECTV On-Demand, will have thousands of hours of top programming
from the major broadcast and cable networks, as well as movies that can be accessed from a
subscriber’s receiver, and programming that will be downloaded through a broadband
connection for customers with a DIRECTV Plus HD-DVR.
•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. As of December 31, 2007, we offered over 65 international channels in 17 languages.
We believe we have leading programming packages in the following languages: Cantonese,
Filipino, Korean, Russian, Spanish, 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 while also reducing costs. We
believe that advancements in technology will drive subscriber demand for enhanced digital video
recorders, or DVRs, and HD equipment, VOD, a whole-house entertainment solution, and
portable devices.
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