DIRECTV 2009 Annual Report Download - page 17

DIRECTV
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 2009 indicated that 96% 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
provide one of the most extensive national HD offerings currently available in the industry.
•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 most 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 one of the nation’s most comprehensive
selections of HD channels, including the largest choice of 1080p movies.
•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 nine consecutive years in the American Customer Satisfaction Index↩. 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
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