DIRECTV 2010 Annual Report Download - page 25

DIRECTV
or regional telephone companies, which we refer to as telcos. We or one of our for an additional fee. In addition, we believe we currently offer one of the
home service providers or dealers install the receiving equipment. The receiving nation’s most comprehensive selections of HD channels, including a large
equipment consists of a small receiving satellite dish antenna, one or more digital choice of 1080p movies.
set-top receivers, which are typically leased to the subscriber, and remote controls, •Sales and Marketing. We sell DIRECTV through a number of distribution
which we refer to as a DIRECTV威 System. After acquiring and installing a channels, including direct sales, online, telcos, national sales providers, local
DIRECTV System, subscribers activate the DIRECTV service by contacting us and sales providers and consumer electronics retailers. We believe this variety of
subscribing to one of our programming packages. distribution alternatives coupled with sophisticated marketing programs,
have enabled us to continue to grow our subscriber base in an increasingly
Key Strengths competitive and mature business.
•Large Subscriber Base. We are the largest provider of DTH digital •Technology. We devote considerable resources to improving our set-top
television services and the second largest MVPD provider in the United receivers, including the middleware for such receivers, as well as developing
States, in each case based on the number of subscribers. We believe that our new services. For example in 2010, we introduced a ‘‘Whole-Home’’ digital
large subscriber base provides us with the opportunity to obtain video recorder, or DVR, service which allows consumers to view and control
programming on favorable terms and secure unique and exclusive content from one DVR to other rooms in the house with the appropriate
programming. We also believe that our large subscriber base contributes to equipment.
achieving other economies of scale in areas such as DIRECTV System
equipment purchasing, customer service, installation and repair service, • Strong Customer Satisfaction. We have attained top rankings in customer
broadcast operations and general and administrative services. satisfaction studies for our industry. For example, we have scored higher
among the largest national cable and satellite TV providers in customer
•Leading Brand Name. We commissioned a study in 2010 which indicated satisfaction for ten consecutive years in the American Customer Satisfaction
that 95% of consumers in the United States recognized the DIRECTV Index娃. We believe that providing high-quality customer service is an
brand name. We believe the strength of our brand name is an important important element in minimizing subscriber disconnection, or churn, and
factor in our ability to attract new subscribers. In addition, we believe our attracting new subscribers.
recognized brand name enhances our ability to secure strategic alliances with
programmers, distributors and other technology and service providers. • Valuable Orbital Slots and Satellite-Based Technology. We believe our
regulatory authorization to use desirable orbital slots and broadcast spectrum
•Substantial Channel Capacity and Programming Content. As a result of helps sustain our position as one of the leading companies in the MVPD
our significant channel capacity, we believe we are able to deliver to our industry. The Federal Communications Commission, or FCC, has
subscribers one of the widest selections of local and national programming designated three direct broadcast satellite, or DBS, orbital slots in the
available today in the United States, including exclusive programming such Ku-Band spectrum that provide full coverage across the 48 contiguous states
as the NFL SUNDAY TICKET package, international programming and of the United States, often referred to as CONUS coverage. Within these
one of the most extensive national HD offerings currently available in the three orbital slots, there are 96 assigned DBS frequencies. We hold licenses
industry. to broadcast our services from 46 of these 96 DBS frequencies. The FCC is
•High-Quality Digital Picture and Sound, Including HD Programming. currently considering licensing additional DBS slots for satellites that are
Our video and audio programming is 100% digitally delivered, providing sometimes referred to as ‘‘tweeners’’ which would provide CONUS coverage.
subscribers with digital-quality video and CD-quality sound. We believe this See ‘‘Government Regulation—FCC Regulation Under the Communications
compares favorably with many cable providers that frequently offer popular Act and Related Acts’’ and ‘‘Risk Factors—The ability to maintain FCC
programming in an analog format and offer a selection of digital channels
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