DIRECTV 2008 Annual Report Download - page 18

THE DIRECTV GROUP, INC.
•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 selection of digital channels for an
additional fee. In addition, we believe we currently offer the nation’s most comprehensive
selection of HD channels.
•Strong Customer Service. We have attained top rankings in customer satisfaction studies for our
industry. For example, we have been rated ahead of every major cable company in customer
service for eight consecutive years in the American Customer Satisfaction Index, conducted by
the University of Michigan Business School. 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 Related Acts’’ 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 (99⍭ west longitude, or WL, 101⍭ WL, and
103⍭ WL) 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 extensive HD channel offering 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 72.5⍭ WL and from leased
capacity on a satellite at 95⍭ WL.
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.
•Strong Balance Sheet. We believe our substantial cash position and relatively low debt levels
combined with our current and expected future cash generation capability provides us with
significant financial flexibility to improve shareholder value. Additionally, we have repurchased
over $8 billion of our common stock over the last 3 years, retiring approximately 29% of our
outstanding shares.
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.
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