DIRECTV 2010 Annual Report Download - page 24

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DIRECTV
PART I Our vision is to make DIRECTV the best video experience anytime and
anywhere for customers in both the United States and Latin America. Our primary
ITEM 1. BUSINESS strategy for achieving this vision is to combine unique and compelling content
DIRECTV, which we also refer to as the company, we or us, is a leading along with industry-leading technology and service to make DIRECTV the clear
provider of digital television entertainment in the United States and Latin America. choice among consumers throughout the Americas. We believe that the successful
We operate two direct-to-home, or DTH, operating segments: DIRECTV U.S. and implementation of this operating strategy along with the return of excess cash to
DIRECTV Latin America, which are differentiated by their geographic location and shareholders will create significant shareholder value over the long term.
are engaged in acquiring, promoting, selling and/or distributing digital DIRECTV’s Class A common stock trades on the NASDAQ威 Global Select
entertainment programming primarily via satellite to residential and commercial Market, or NASDAQ, under the ticker ‘‘DTV’’. DIRECTV was incorporated in
subscribers. In addition, since November 19, 2009, we own and operate three Delaware in 2009.
regional sports networks, or RSNs, and own a 65% interest in Game Show
Network, LLC, or GSN, a basic television network dedicated to game-related DIRECTV U.S.
programming and Internet interactive game playing. We account for our investment
in GSN using the equity method of accounting. Through DIRECTV U.S., we provide over 19.2 million subscribers with
access to hundreds of channels of digital-quality video entertainment and
•DIRECTV U.S. DIRECTV Holdings LLC and its subsidiaries, which we CD-quality audio programming that we transmit directly to subscribers’ homes or
refer to as DIRECTV U.S., is the largest provider of DTH digital television businesses via high-powered geosynchronous satellites. We also provide
services and the second largest provider in the multi-channel video video-on-demand, or VOD, via broadband to our subscribers who have connected
programming distribution, or MVPD, industry in the United States. As of their set-top receiver to their broadband service.
December 31, 2010, DIRECTV U.S. had over 19.2 million subscribers.
We believe we provide one of the most extensive collections of programming
•DIRECTV Latin America. DIRECTV Latin America, or DTVLA, is the available in the MVPD industry, including over 160 national high-definition, or
leading provider of DTH digital television services throughout Latin HD, television channels and four dedicated 3D channels. In addition, we offer
America. DTVLA is comprised of: PanAmericana, which provides services in VOD service, named DIRECTV CINEMATM, which provides a selection of over
Venezuela, Argentina, Chile, Colombia, Puerto Rico and certain other 6,000 movie and television programs to our broadband-connected subscribers. As of
countries in the region; our 93% owned subsidiary, Sky Brasil December 31, 2010, we provided local channel coverage in HD to markets
Servicos Ltda., which we refer to as Sky Brazil; and our 41% equity method covering over 95% of U.S. television households. In addition, we provided local
investment in Innova, S. de R.L. de C.V., which we refer to as Sky Mexico. channel coverage in standard definition to markets representing approximately 98%
As of December 31, 2010, PanAmericana had approximately 3.3 million of U.S. television households.
subscribers, Sky Brazil had approximately 2.5 million subscribers and Sky
Mexico had approximately 3.0 million subscribers. We also provide premium professional and collegiate sports programming such
as the NFL SUNDAY TICKET娃 package, which allows subscribers to view the
•DIRECTV Sports Networks. DIRECTV Sports Networks LLC and its largest selection of NFL games available each Sunday during the regular season.
subsidiaries, or DSN, is comprised primarily of three RSNs based in Seattle, Under our contract with the NFL, we have exclusive rights to provide this service
Washington, Denver, Colorado and Pittsburgh, Pennsylvania, currently through the 2014 season, including rights to provide related broadband, HD,
known as FSN NorthwestTM, FSN Rocky MountainTM and FSN interactive and mobile services.
PittsburghTM, respectively. The operating results of DSN beginning
November 19, 2009 are reported as part of the ‘‘Sports Networks, To subscribe to the DIRECTV威 service, subscribers sign up for our service
Eliminations and Other’’ operating segment. through us, our national retailers, independent satellite television retailers or dealers,
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