DIRECTV 2011 Annual Report Download - page 21

Broadband is at a fairly nascent stage in Latin America, leaving us plenty of
opportunity to compete. We believe that with a reliable product, at the right
price, we can develop a profitable business selling wireless broadband to the
home primarily as part of a bundle for customers who take our video package.
The wireless broadband project we initiated in Mendoza, Argentina in
2010 is showing excellent results and gave us the confidence to move
forward with a similar service in Brazil.
The SKY Brasil launch of 4G wireless broadband service in Brasilia late
last year will open up more opportunities for growth in Brazil and across
the region. 4G technology is not widely available in Latin America. It’s fast,
reliable and capable of carrying large amounts of data including video.
We believe it will provide us with a decisive competitive edge especially
in areas that lack a developed, fixed infrastructure, which is true of much
of Latin America. By bundling the fastest wireless broadband service
and the best video product, we’ll have a compelling offer that will boost
revenues and reduce churn.
Broadband service will be a priority for us in 2012 as we look to expand
our spectrum footprint in Brazil and other countries. Additionally, there are
both opportunities to provide our own broadband service or work with other
providers to offer bundled services as we do in Argentina and Colombia.
This year we also plan to launch SKY Online, an over-the-top service,
enabling SKY customers to stream or download a wide variety of movies
and other programming. We tested it successfully last year and will launch it
nationally in Brazil in early 2012.
On the technology front, our Latin America team will continue to work
closely with our product development team in the U.S. following the roadmap
they’ve laid out so we may offer more HD channels and add other services.
As the region grows in sophistication and income level, we’ll introduce more
advanced products like those in the U.S., including multi-room viewing, Nomad,
our iPad app and DIRECTV Everywhere.
I’m extremely proud of what we’ve accomplished in Latin America and
enthusiastic about our terrific growth opportunities ahead. We will
certainly face some challenges in 2012 from exchange rate headwinds and
rising inflation in some markets. But we are confident we can continue to
aggressively grow our revenues and profits again in 2012.
With our scale, strong economies in the region, favorable demographics,
world-class products and superior service, we are in a great position to
maintain our leadership as the premier video provider in the region and the
largest pay-TV service in the world.
Most importantly, I’m confident about our prospects in Latin America
because of our talented team of seasoned business leaders. They have the
passion, knowledge, skill and judgment to capture the opportunities and
execute on our plans for profitable growth in this still largely untapped region.
OUR COMMITMENT TO SUSTAINABILITY AND RESPONSIBILITY
At DIRECTV we believe that in today’s world every business has a responsibility
to the community it serves and must do its part to ensure our planet is
healthy for future generations. And today’s consumers and employees
will make brand choices on this approach. We made significant progress on
both of those fronts in 2011.
Last year, we recommitted to delivering on our promise to the community
with a strengthened focus on K–12 education. Using our entertainment
resources, we created original content for the classroom with special
presentations of a Black History Month celebration featuring Archbishop
Desmond Tutu and jazz legend Herbie Hancock and produced the original
documentary More Than A Dream , which chronicles the Civil Rights
Movement and the creation of the Martin Luther King, Jr. National Memorial
in Washington, D.C.
Beyond education, we engaged our employees and partners in
volunteer service projects to build a nearly 10,000-square-foot
playground in New Orleans and are planning a similar project in 2012.
We also brought a piece of our Latin America community engagement
strategy to the U.S. with our employees volunteering to renovate
the East Los Angeles Women’s Center as part of our “Piedra Papel
Tijera” (Rock Paper Scissors) initiative. Over the past few years
At DIRECTV we believe that in
today ’s world every business has
a responsibility to the community
it serves and must do its part to
ensure our planet is healthy for
future generations.