DIRECTV 2008 Annual Report Download - page 20

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THE DIRECTV GROUP, INC.
packages, 12 of which are exclusive to DIRECTV vis-`
a-vis other MVPD providers. In
addition, we offer over 70 international channels in 14 other languages and 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, mobile
and portable devices.
Enhance Equipment While Reducing Costs. A cornerstone of our strategy is to use set-top
receivers that incorporate DVR and HD technology. We continue to increase the
penetration of these services by introducing features and functionality while driving down
the costs of our set-top receivers. For example, we reduced the cost of our DIRECTV Plus
HD-DVR and DIRECTVHD receivers by nearly 40% in 2008 compared to 2007, while
significantly increasing the recording capacity and adding new features such as Internet
connectivity for DIRECTV on Demand. Also in 2008, we introduced the single wire multi-
switch (SWM) dish antennae that is expected to simplify installation.
Enhance/Improve User Interface/Guide. We are constantly striving to improve our guide and
User Interface because it is important that our subscribers are able to access the many
offerings we provide in as easy and intuitive a manner as possible. For example, in 2008 we
introduced Quick Tune, a feature for our DIRECTV PlusDVR and DIRECTV PlusHD
DVR subscribers that lets a customer program nine favorite channels for quick changes
using one button on the remote control. We also launched a service named DVR Scheduler
that allows customers to program their DVR from any computer or cell phone. In 2009, we
expect to begin broadcasting movies in 1080p high-definition as well as introduce a new
feature called Score Guide which will provide customers with instant access and
up-to-the-minute game scores from the major sports leagues at the touch of a button.
Introduce Whole-House, Mobile and Portable Services. We believe that it is important for our
subscribers to have multiple ways to access DIRECTV programming throughout the home
and on devices other than the television. Accordingly, we introduced DIRECTV2PC and
MediaShare, that enables users to access their DVR from any computer in the house as
well as access music, pictures and videos from a computer on their television. In the future,
we expect to introduce a home media center that will provide HD, DVR and standard-
definition video functionality throughout the home and allow customers to access stored
content, including video, photos and music, seamlessly from any connected television in a
home. We also intend to make DIRECTV programming more ubiquitous by offering it on
portable and mobile devices, including cell phones.
Enhance Sales and Marketing; Focus on High Quality Subscribers; Improve Customer Service,
Distribution and Installation. We expect to continue to grow our subscriber base and maintain
relatively low churn levels by focusing on acquiring high quality subscribers, and improving our
customer service, distribution and installation.
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