DIRECTV 2010 Annual Report Download - page 26

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DIRECTV
licenses and other regulatory approvals is critical to our business’’ for more customers in all our service interactions, (2) enhancing customer targeting and
information related to these types of slots and satellites. segmentation and (3) strengthening our bundled offers and capabilities.
In addition, we hold licenses in three orbital slots (99⬚ west longitude, • Delight Our Customers in All Service Interactions; Improve our Loyalty
or WL, 101⬚ WL, and 103⬚ WL) in the Ka-Band spectrum. The satellites and Retention Programs. Due in part to the higher costs to acquire new
that have been launched into these orbital slots have substantially increased subscribers in an increasingly mature industry, it is even more
our channel capacity, allowing us to provide one of the most extensive HD important to focus to delight all of our customers as we strive to
channel offerings currently available across the United States. We also have reduce churn. We believe an important part of this strategy is to
obtained approval from the FCC to transmit our signal in the Ku-Band increase customer satisfaction through all service interactions including
from one of our satellites that has been stationed at a temporary orbital the initial installation and any subsequent communications, service or
location at 72.5⬚ WL and from leased capacity on a satellite at 95⬚ WL. upgrade transactions. Another important part of our strategy is to
improve our loyalty and retention programs, particularly for our most
Our satellite-based service provides us with many advantages over ground- tenured and valuable customers.
based cable television services. We have the ability to distribute hundreds of
channels to millions of recipients nationwide with minimal incremental • Enhance Customer Targeting. As the market for video services becomes
infrastructure cost per additional subscriber. In addition, we have increasingly competitive, it is important that we have a better
comprehensive coverage to areas with low population density in the United understanding of and focus on our customers’ needs and desires. We
States and the ability to quickly introduce new services to a large number of will use segmentation analysis to better target new customers based on
subscribers. demographic, geographic and customer information to more profitably
and effectively provide our customers with the products and services
•Strong Balance Sheet. We believe our cash position and borrowing capacity they desire.
combined with our current and expected future cash generation capability
provides us with significant financial flexibility to improve shareholder value. • Strengthen Our Bundled Offers and Capabilities. Bundled video,
We have repurchased approximately $15 billion of our common stock over telephone and broadband services continue to grow in popularity as
the last five years, retiring approximately 44% of our outstanding shares, consumers look for ways to reduce costs in a challenging economy.
and have announced a new $6 billion share repurchase plan for 2011. Currently we have agreements with most of the major telco companies
nationwide to offer bundles which include the DIRECTV service.
Business Strategy However, in the future, we believe we will need to work more closely
with broadband providers to make our bundles more seamless, offer
Our vision is to provide customers with the best video experience in the broadband services with higher speeds and improve joint marketing
United States both inside and outside of the home by offering subscribers unique, efforts so that a greater percentage of our customers can enjoy the
differentiated and compelling programming through leadership in content, benefits of a bundle.
technology and customer service. Our strategy involves (1) strengthening our core
business, (2) delivering the best ‘‘anytime, anywhere’’ experience—both inside and • Deliver the Best ‘‘Anytime, Anywhere’’ Experience Both Inside and
outside of the home, (3) building new revenue streams and (4) enhancing Outside of the Home. To provide the best video experience both inside and
productivity. outside of the home, we will be focusing on (1) expanding our Whole-
Home DVR and time-shifting capabilities, (2) connecting our subscribers’
•Strengthen the Core Business. To fulfill our goals, we believe we have to set-top boxes to broadband service, (3) launching a new user interface to
strengthen our core business in several key areas including (1) delighting our support multi-screen applications and services, (4) enhancing our
entertainment portal and (5) providing portable access to DVR content.
4