DIRECTV 2009 Annual Report Download - page 18

DIRECTV
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 launched into these orbital
slots have substantially increased our channel capacity, allowing us to provide one of the most
extensive HD channel offerings 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
nearly $10 billion of our common stock over the last four years, retiring approximately 34% of
our outstanding shares, and have announced a new $3.5 billion share repurchase plan which we
expect to complete during 2010.
Business Strategy
Our vision is to provide customers with the best video experience in the United States both inside
and outside of the home by offering subscribers unique, differentiated and compelling programming
through leadership in content, technology and customer service.
•Offer Differentiated and Exclusive Content and Services. To fulfill our goal, we believe we must
provide the most extensive collection of valuable programming and interactive services to our
customers.
•Provide the Most Extensive Collection of Valuable Programming. We believe that we currently
have one of the most extensive collections of programming in the MVPD industry and our
strategy is to continue improving our offering. For example, we offer content which is not
offered by other MVPD providers such as NFL SUNDAY TICKET where subscribers can
watch up to 14 games each week, most of which are offered in HD. We have also signed
agreements to be the exclusive MVPD provider of NCAA↧ MEGA MARCH MADNESS↧.
In addition, we offer our customers The 101↧ Network, a free premium channel dedicated
to the broadcast of unique and exclusive content including series such as Friday Night
Lights, Deadwood↧, Sleeper Cell↧ and The NineTM as well as concert performances by
top-rated artists. In 2009, we also launched new shows on The 101 Network such as The
Dan Patrick ShowTM and Trailer Park Boys↧.
We also believe we currently have one of the most extensive national HD channel offerings
as well as the largest lineup of 1080p movies in the MVPD industry. Additionally, when our
DIRECTV 12 satellite is put into service in the second quarter of 2010, we expect to have
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