DIRECTV 2011 Annual Report Download - page 28

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DIRECTV
•Valuable Orbital Slots and Satellite-Based Technology. We believe our business, (2) delivering the best ‘‘anytime, anywhere’’ experience, both inside and
regulatory authorization to use desirable orbital slots and broadcast spectrum outside of the home, (3) building new revenue streams and (4) enhancing
helps sustain our position as one of the leading companies in the MVPD productivity.
industry. Our satellite-based service provides us with many advantages over •Strengthen the Core Business. To fulfill our goals, we believe we have to
ground-based cable television services. We have the ability to distribute strengthen our core business in several key areas including (1) delighting our
hundreds of channels to millions of recipients nationwide with minimal customers in all our service interactions, (2) enhancing customer targeting
incremental infrastructure cost per additional subscriber. In addition, we and segmentation and (3) strengthening our bundled offers and capabilities.
have comprehensive coverage to areas with low population density in the
United States and the ability to quickly introduce new services to a large • Delight Our Customers in All Service Interactions; Improve our Loyalty
number of subscribers. and Retention Programs. Due in part to higher costs to acquire new
subscribers in an increasingly mature industry, it is even more
We hold licenses in three orbital slots (99west longitude, or WL, 101important to strengthen and customize our service experience with a
WL, and 103WL) in the Ka-Band spectrum. The satellites that have been focus on delighting all of our customers as we strive to reduce churn
launched into these orbital slots have substantially increased our channel and maintain strong margins. We believe an important part of this
capacity, allowing us to provide one of the most extensive HD channel strategy is to increase customer satisfaction through all service
offerings currently available across the United States. In addition, we hold interactions including the initial installation and any subsequent
licenses to broadcast our services from 46 of 96 Ku-band DBS frequencies communications, service or upgrade transactions. Another important
spread over three orbital slots (101WL, 110WL and 119WL). The part of our strategy is to improve our loyalty and retention programs,
FCC is currently considering licensing additional DBS slots for satellites particularly for our most tenured and valuable customers.
that are sometimes referred to as ‘‘tweeners’’ which would provide CONUS
coverage. See ‘‘Government Regulation—FCC Regulation Under the • Enhance Customer Targeting. As the market for video services becomes
Communications Act and Related Acts’’ and ‘‘Risk Factors—The ability to increasingly competitive, it is important that we have a better
maintain FCC licenses and other regulatory approvals is critical to our understanding of and focus on our new and existing customers’ needs
business’’ for more information related to these types of slots and satellites. and desires. We will use segmentation analysis to better target these
customers based on demographic, geographic and customer information
•Strong Balance Sheet. We believe our cash position and borrowing capacity to more profitably and effectively provide our customers with the
combined with our current and expected future cash generation capability products and services they desire.
provides us with significant financial flexibility to improve stockholder value.
We have repurchased approximately $20.5 billion of our common stock over • Strengthen Our Bundled Offers and Capabilities. Bundled video,
the last six years, retiring approximately 52% of our then-outstanding telephone and broadband services continue to grow in popularity as
shares, as of December 31, 2011, and have announced a new $6 billion consumers look for ways to reduce costs in a challenging economy.
share repurchase program in February 2012. Currently we have agreements with most of the major telco companies
nationwide to offer digital subscriber line, or DSL, and fiber bundles
Business Strategy which include the DIRECTV service. In 2011, we began the
implementation of an integrated broadband ordering tool that enables
Our vision is to provide customers with the best video experience in the us to offer our DSL and fiber bundles through a more seamless
United States both inside and outside of the home by offering subscribers unique, process. We believe it is important that we continue to work closely
differentiated and compelling programming through leadership in content, with broadband providers to further streamline the bundle process,
technology and customer service. Our strategy involves (1) strengthening our core offer broadband services with higher speeds and improve joint
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