DIRECTV 2008 Annual Report Download - page 17

THE DIRECTV GROUP, INC.
We believe we provide one of the most extensive collections of programming available in the
MVPD industry. We currently distribute more than 2,000 digital video and audio channels, including
about 200 basic entertainment and music channels, 40 premium movie channels, over 50 regional and
specialty sports networks, over 125 Spanish and other foreign language special interest channels, over
31 pay-per-view movie and event choices, and about 130 national high-definition, or HD, television
channels. Although we distribute more than 1,500 local channels—over 500 in high-definition—a
subscriber generally receives only the local channels in the subscriber’s home market. As of
December 31, 2008, we provided local channel coverage in standard definition to approximately 150
markets, covering about 95% of U.S. television households. In addition, we provided HD local channels
in 119 markets representing approximately 89% of U.S. TV households. With the expected launch of
an additional satellite in the second half of 2009, we expect to further expand our offering of HD
channels.
We also provide premium professional and collegiate sports programming such as the NFL
SUNDAY TICKET↩ package, 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 the 2010 season, including rights to provide related HD,
interactive and mobile services.
To subscribe to the DIRECTV↧ service, subscribers acquire receiving equipment from either us,
our national retailers, independent satellite television retailers or dealers, or regional telephone
companies, which we refer to as telcos. 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 DIRECTV↧ System. 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, installation and repair service,
broadcast operations and general and administrative services.
•Leading Brand Name. Results from a study we commissioned in 2008 indicated that 92% of
consumers in the United States recognized the DIRECTV brand name. 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 which enables us to
offer the most extensive national HD programming currently available in the industry.
4