DIRECTV 2010 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2010 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

DIRECTV
Key Strengths Business Strategy
•High Quality Digital Picture and Sound. Our video and audio Our strategy is focused on leveraging DTVLA’s key strengths in order to
programming is 100% digitally delivered, providing subscribers with digital- differentiate our service from our competitors.
quality picture and sound, as well as interactive features. We believe that •Offer Unique Content. We expect that we can leverage our greater scale to
this compares favorably with cable providers in Latin America, which offer unique and compelling content to subscribers. For example, in most of
typically continue to broadcast only analog services or a combination of the territories in which we operate we were the only provider of television
analog and digital services to a large percentage of their subscribers. services where subscribers could see all of the 2010 FIFA World Cup娃
•Large Subscriber Base and Pan-Regional Scale of Service. On a regional games, and we were the only operator distributing all of the games in high
basis, we are the largest provider of pay television services in Latin America. definition. In some cases, we held exclusive rights to 2010 FIFA World Cup
We believe that this scale provides us with the opportunity to obtain games. Similarly, Sky Brazil, PanAmericana and Sky Mexico have licensed
programming on favorable terms, and contributes to economies of scale in exclusive rights through the 2011-2012 season to the Spanish soccer league,
other areas, such as customer service, equipment and technology purchasing which in most countries is the second most popular soccer league behind
and broadcast operations. the local country leagues.
•Relationship with DIRECTV U.S. We believe that our ability to leverage • Increase DVR Penetration. A key aspect of our strategy is to use the
the advanced technologies and best practices developed and followed by availability of high quality, reasonably priced DVRs as a cornerstone to
DIRECTV U.S. allows us to take advantage of their economies of scale, distinguish our service from our competitors’ services. We believe that our
intellectual property and financial flexibility. PanAmericana, Sky Brazil and technology and pan-regional scale, as well as our relationship with
Sky Mexico have aligned their set-top box specifications and middleware DIRECTV U.S., can be leveraged to provide DVRs that are more
technologies with DIRECTV US, which allows for the launch of new functional and less costly than those of our competitors. In most countries
features and services in advance of competitors in the region. in which we operate, our competitors either do not offer DVRs or make
them available on terms that have significantly limited their penetration. As
•Leading Brands. DIRECTV and SKY continue to position their brands in a result of this leadership position, as of the end of 2010, approximately
Latin America as a leader in digital entertainment and the best quality 25% of our subscribers had DVR service.
television available. In 2010, this was particularly accentuated by the
aggressive positioning of our advanced products, such as DVRs and HD • Establish Leadership Position in High-Definition. PanAmericana and Sky
DVRs throughout the territory, which translated into pan-regional Brazil launched HD services in 2008 and mid-2009, respectively. Other
penetration rates of approximately 25% of our subscriber base. than in Brazil, Chile and Puerto Rico, our competitors have limited or no
HD offerings and many face significant network capacity constraints that
•Strong Customer Service. We believe that we generally have a higher level limit their ability to offer HD services on a significant scale. Although we
of customer service than our competitors, which is an important element in believe that the HD content offerings will be more limited in Latin America
minimizing subscriber churn and attracting new customers. In addition, our than in the United States for the next several years and the uptake of HD
ability to implement best practices in customer service from across the services in Latin America will be much slower than in the United States, we
region, as well as those at DIRECTV U.S., allow us to adapt quickly and expect that our ability to offer high-quality HD services will provide another
efficiently to changes that we face. opportunity for us to differentiate the quality of our services from those of
our competitors. As of year-end 2010, Sky Brazil offered its customers 35
HD channels and PanAmericana offered its customers on average 10 HD
channels.
9