DIRECTV 2011 Annual Report Download - page 27

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DIRECTV
Under our contract with the NFL, we have exclusive rights to provide this service extensive national HD offerings currently available in the industry. In
through the 2014 season, including rights to provide related broadband, HD, addition, we believe that we offer the most comprehensive collection of
VOD, interactive and mobile services. sports programming content available both inside and outside of the home,
with packages such as the NFL SUNDAY TICKET TO GO and Big Ten
To subscribe to the DIRECTVservice, subscribers sign up for our service Network TO GO.
through us, our national retailers, independent satellite television retailers or dealers,
or regional telephone companies, which we refer to as telcos. We or one of our • High-Quality Digital Picture and Sound, Including HD and 3D
home service providers or dealers install the receiving equipment. The receiving Programming. Our video and audio programming is 100% digitally
equipment, which we refer to as a DIRECTVSystem, consists of a small receiving delivered, providing subscribers with digital-quality video and CD-quality
satellite dish antenna, one or more digital set-top receivers, which are typically sound. We believe this compares favorably with some cable providers that
leased to the subscriber, and remote controls. After acquiring and installing a offer popular programming in an analog format and offer a selection of
DIRECTV System, subscribers activate the DIRECTV service by contacting us and digital channels for an additional fee. In addition, we believe we currently
subscribing to one of our programming packages. offer one of the nation’s most comprehensive selections of HD channels,
including a large collection of 1080p HD movies. Also, we currently offer
Key Strengths 3D programming on four dedicated channels.
•Large Subscriber Base. We are the largest provider of DTH digital • Sales and Marketing. We sell DIRECTV through a number of distribution
television services and the second largest MVPD provider in the United channels, including direct sales, online, telcos, national sales providers, local
States, in each case based on the number of subscribers. We believe that our sales providers and consumer electronics retailers. We believe this variety of
large subscriber base provides us with the opportunity to obtain distribution alternatives coupled with sophisticated marketing programs,
programming on favorable terms and secure unique and exclusive have enabled us to continue to grow our subscriber base in an increasingly
programming. We also believe that our large subscriber base contributes to competitive and mature business.
achieving other economies of scale in areas such as DIRECTV System •Technology. We devote considerable resources to improving our set-top
equipment purchasing, customer service, installation and repair service, receivers, including the middleware for our receivers, as well as developing
broadcast operations and general and administrative services. new services. For example in 2011, we introduced the ‘‘Home Media
•Leading Brand Name. We commissioned a study in 2010 which indicated Center,’’ a premium high definition whole home DVR service with a
that 95% of consumers in the United States recognized the DIRECTV terabyte hard drive that allows consumers to record five simultaneous
brand name. We believe the strength of our brand name is an important programs while viewing and controlling content from one DVR to other
factor in our ability to attract new subscribers and retain existing rooms in the house with the appropriate equipment. In 2011, we also
subscribers. In addition, we believe our recognized brand name enhances our introduced the new ‘‘HD UI,’’ or high definition user interface, which
ability to secure strategic alliances with programmers, distributors and other supports a personalized and interactive video experience.
technology and service providers. •Strong Customer Satisfaction. We have attained top rankings in customer
•Substantial Channel Capacity and Programming Content. As a result of satisfaction studies for our industry. For example, we have scored higher
our significant channel capacity, we believe we are able to deliver to our than the largest national cable providers in customer satisfaction for eleven
subscribers one of the widest selections of local and national programming consecutive years in the American Customer Satisfaction Index. We
available today in the United States, including exclusive programming such believe that providing high-quality customer service is an important element
as the NFL SUNDAY TICKET package, critically acclaimed original series in minimizing subscriber disconnection, or churn, and attracting new
content such as Damages, international programming and one of the most subscribers.
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