DIRECTV 2011 Annual Report Download - page 26

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DIRECTV
PART I ROOT SPORTS. The operating results of DSN beginning November 19,
2009 are reported as part of the ‘‘Sports Networks, Eliminations and Other’’
ITEM 1. BUSINESS operating segment.
DIRECTV, which we also refer to as the company, we or us, is a leading Our vision is to make DIRECTV the best video experience anytime and
provider of digital television entertainment in the United States and Latin America. anywhere for customers in both the United States and Latin America. Our primary
We operate two direct-to-home, or DTH, operating segments: DIRECTV U.S. and strategy for achieving this vision is to combine unique and compelling content
DIRECTV Latin America, which are differentiated by their geographic location and along with technological innovation and industry-leading customer service to make
are engaged in acquiring, promoting, selling and distributing digital entertainment DIRECTV the clear choice among consumers throughout the Americas. We believe
programming primarily via satellite to residential and commercial subscribers. In that the successful implementation of this operating strategy along with the return
addition, since November 19, 2009, we own and operate three regional sports of excess cash to stockholders will create significant stockholder value over the long
networks, or RSNs, and own a 60% interest in Game Show Network, LLC, or term.
GSN, a basic cable television network dedicated to game-related programming and
Internet interactive game playing. We account for our investment in GSN using the DIRECTV’s Class A common stock trades on the NASDAQGlobal Select
equity method of accounting. Market, or NASDAQ, under the ticker ‘‘DTV’’. DIRECTV was incorporated in
Delaware in 2009.
•DIRECTV U.S. DIRECTV Holdings LLC and its subsidiaries, which we
refer to as DIRECTV U.S., is the largest provider of DTH digital television DIRECTV U.S.
services and the second largest provider in the multi-channel video
programming distribution, or MVPD, industry in the United States. As of Through DIRECTV U.S., we provide approximately 19.9 million subscribers
December 31, 2011, DIRECTV U.S. had approximately 19.9 million with access to hundreds of channels of digital-quality video entertainment and
subscribers. CD-quality audio programming that we transmit directly to subscribers’ homes or
businesses via high-powered geosynchronous satellites. We also provide
•DIRECTV Latin America. DIRECTV Latin America Holdings, Inc. and video-on-demand, or VOD, by ‘‘pushing’’ top-rated movies onto customers’ digital
its subsidiaries, which we refer to as DIRECTV Latin America, is the video recorders, or DVRs, for instant viewing, as well as via broadband to our
leading provider of DTH digital television services throughout Latin subscribers who have connected their set-top receiver to their broadband service.
America. DIRECTV Latin America is comprised of: PanAmericana, which
provides services in Argentina, Chile, Colombia, Ecuador, Venezuela, certain We believe we provide one of the most extensive collections of programming
other countries in the region, and the Caribbean, including Puerto Rico; available in the MVPD industry, including over 170 national high-definition, or
our 93% owned subsidiary, Sky Brasil Servicos Ltda., which we refer to as HD, television channels and four dedicated 3D channels. In addition, we offer
Sky Brazil; and our 41% equity method investment in Innova, S. de R.L. VOD service, named DIRECTV CINEMATM, which provides a selection of
de C.V., which we refer to as Sky Mexico. As of December 31, 2011, approximately 7,000 movie and television programs to our broadband-connected
PanAmericana had approximately 4.1 million subscribers, Sky Brazil had subscribers. As of December 31, 2011, we provided local channel coverage in HD
approximately 3.8 million subscribers and Sky Mexico had approximately to markets covering over 96% of U.S. television households. In addition, we
4.0 million subscribers. provided local channel coverage to markets representing approximately 99% of U.S.
television households.
•DIRECTV Sports Networks. DIRECTV Sports Networks LLC and its
subsidiaries, or DSN, is comprised primarily of three regional sports We also provide premium professional and collegiate sports programming such
television networks based in Seattle, Washington; Denver, Colorado and as the NFL SUNDAY TICKETpackage, which allows subscribers to view the
Pittsburgh, Pennsylvania, each of which operates under the brand name largest selection of NFL games available each Sunday during the regular season.
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