DIRECTV 2009 Annual Report Download - page 16

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DIRECTV
stock and Series B common stock (other than Dr. John Malone and his family, or the Malones)
received 1.11130 shares of DIRECTV Class A common stock for each share of LEI Series A or
Series B common stock held. The Malones received 1.11130 shares of DIRECTV Class B common
stock for each share of LEI Series B common stock held.
DIRECTV has two classes of common stock outstanding, Class A common stock and Class B
common stock. The DIRECTV Class A common stock is entitled to one vote per share and the
Class B common stock is entitled to 15 votes per share. The DIRECTV Class A common stock trades
on the NASDAQ↧ Global Select Market, or NASDAQ, under the ticker ‘‘DTV’’. DIRECTV Group
common stock has been delisted and no longer trades on the NASDAQ. The DIRECTV Class B
common stock will not be listed on any stock exchange or automated dealer quotation system. The
Malones own all outstanding Class B common stock, and have agreed to limit their Class B voting
rights to 24% of the total voting power of DIRECTV’s common stock. Including their Class A and
Class B ownership interests, the Malones hold an approximate 2.7% economic interest and an
approximate 24.3% voting interest in DIRECTV.
DIRECTV Group has been treated as the acquiring corporation in the Liberty Transaction for
accounting and financial reporting purposes and accordingly, the historical financial statements of
DIRECTV Group are reported as the historical financial statements of DIRECTV.
For additional information regarding the Liberty Transaction, refer to Note 3 of the Notes to the
Consolidated Financial Statements and Amendment No. 5 to DIRECTV’s Registration Statement on
Form S-4 filed with the SEC on October 20, 2009.
DIRECTV was incorporated in Delaware in 2009.
DIRECTV U.S.
Through DIRECTV U.S., we provide over 18.5 million subscribers with access to hundreds of
channels of digital-quality video pictures and CD-quality audio programming that we transmit directly
to subscribers’ homes or businesses via high-powered geosynchronous satellites.
We believe we provide one of the most extensive collections of programming available in the
MVPD industry. As of December 31, 2009, we distributed 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 120 Spanish and other foreign language special
interest channels, over 31 pay-per-view movie and event choices, and over 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.
In addition, we offer an on demand service named DIRECTV on DEMAND which, as of the end of
2009, provided a selection of about 6,000 movie and television programs to our subscribers who have a
broadband connection to their set-top receiver. As of December 31, 2009, we provided local channel
coverage in standard definition to markets covering about 95% of U.S. television households. In
addition, we provided HD local channels to markets representing approximately 92% of U.S. TV
households. In the second quarter of 2010, we expect to further expand our offering of HD channels
when the recently launched DIRECTV 12 satellite begins operations.
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 2014 season, including rights to provide related broadband,
HD, interactive and mobile services.
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