DIRECTV 2009 Annual Report Download - page 23

DIRECTV
expects to have the capability to serve approximately 30 million of its customers by the end of
2011. As of year end 2009, Verizon had nearly 3 million video subscribers and AT&T had
approximately 2 million video subscribers. Similar to the cable companies, the telcos expect to
offer their customers multiple services at a discount on one bill.
•Other Direct Broadcast Satellite and Direct-To-Home Satellite System Operators. We also compete
with DISH Network Corporation, or DISH Network, which had over 14 million subscribers at
the end of 2009, representing approximately 14% of MVPD subscribers. Other domestic and
foreign satellite operators also have proposed to offer DTH satellite service to U.S. customers
using U.S.-licensed satellite frequencies or foreign-licensed frequencies that have the ability of
covering the United States.
•Video via the Internet. With the large increase in the number of consumers with broadband
service, a significant amount of video content has become available on the Internet for users to
download and view on their personal computers, televisions and other devices. For example,
AppleTM offers two hundred television shows and 400 movies for rental or purchase, some in
high-definition, on the online iTunes↧ Store. In addition, Hulu↩ is an online video service
website which provides free movies and TV shows from over 190 content providers including
Fox, Disney, NBC Universal, MGM Studios, Sony Pictures and Warner Bros. This content can
be accessed on demand through its website and those of its partners—AOL, MSN, MySpace and
Yahoo. In addition, several companies, such as Netflix, Blockbuster and Amazon.com, have
begun selling and renting movies via Internet download. For example, Netflix has a library of
17,000 movies and TV shows available for download to its over 12 million subscribers. There are
also several similar initiatives by companies such as Intel, Microsoft and Sony to make it easier
to view Internet-based video on television and personal computer screens. Many television
models, Blu-Ray Disc↧ players and gaming consoles like the Xbox↧ can be directly connected to
the Internet and have the capacity to stream video to the television.
•Mobile Video. Many companies are beginning to offer mobile applications for video allowing
consumers to watch video on the go. For example, AT&T offers mobile TV which provides users
the ability to watch full length TV shows from ABC, CBS, ESPN and other programmers on
their cell phones. Verizon Wireless offers V Cast↩ which allows subscribers to watch many of
the top TV shows including college football and basketball on their mobile phone for a modest
fee. In addition other mobile applications and services are becoming available such as FLO
TVTM service from Qualcomm. FLO TV provides portable TV with full length shows from
programmers such as Fox, CBS, Fox News Channel and ESPN on a portable device. Other cable
and satellite distributors are also focused on distributing their content to their customers on the
go.
•Small and Rural Telephone Companies. Other telephone companies are also finding ways to
deliver video programming services over their wireline facilities or in a bundle with other MVPD
providers. For example, DISH Network has agreements with Embarq, CenturyTel, Windstream,
TDS, and Frontier to bundle their individual DSL and telephony services with DISH Network’s
video service.
•Local Broadcasters. Most areas of the United States can receive traditional digital television
broadcasts of between three and ten channels. These broadcasters are often low to medium
power operators with a limited coverage area and provide local, network and syndicated
programming typically free of charge. There are over 2,000 TV broadcast stations in the U.S.
split among 210 TV markets.
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