DIRECTV 2011 Annual Report Download - page 34

DIRECTV
To subscribe to the DIRECTV or SKY service, customers sign up for our U.S., which allows for the launch of new technologies, innovative features
video service through us, our regional retailers, or independent satellite television and services in advance of our competitors in the region and at a lower
retailers or dealers. We tailor our offers and products to profitably and effectively cost.
provide our service to various customer segments across the region that have the •High Quality Digital Picture and Sound. Our video and audio
need and desire for our brand and service. We offer post-paid products and services programming is 100% digitally delivered, providing subscribers with digital-
to customers who meet our standard requirements. For these customers, dealers or quality video and CD-quality sound, as well as interactive features and
one of our home service providers install the receiving equipment. The receiving functionality. We believe this compares favorably with many cable providers
equipment consists of a small receiving satellite dish antenna, one or more digital in Latin America, which typically continue to broadcast to a large
set-top receivers, which are typically leased to the subscriber, and remote controls. percentage of their subscribers in analog format.
In addition, we offer prepaid service for customers that desire payment and
commitment flexibility. These customers may purchase a standard definition box • Sales and Marketing. We sell DIRECTV and SKY through a number of
and antenna at a regional retailer and pre-pay their DIRECTV service typically distribution channels, including direct sales, online, regional sales providers
through one or more means, such as the purchase of a rechargeable card that they and local sales providers. We believe this variety of distribution alternatives
can acquire at the retailer or local kiosk. The video service will automatically coupled with segmented marketing programs, have enabled us to continue
disconnect once the credit on the card runs out. to grow our subscriber base and benefit from favorable market conditions by
extending our leadership with advanced products as well as by continuing to
Key Strengths penetrate the middle market segment with tailored package offerings.
•Large Subscriber Base and Pan-Regional Scale of Service. On a regional • Strong Customer Satisfaction. We have attained top rankings in customer
basis, we are the largest provider of pay television services in Latin America. satisfaction studies for the pay television industry across the region. For
We believe that our large subscriber base and scale provides us with the example in 2011, the Brazilian Direct Marketing Association awarded SKY
opportunity to obtain programming on favorable terms and secure unique ‘‘Best of the Best’’ in the Customer Service Category for our SKY HDTV
content and features. We also believe that our large subscriber base product. In addition, Telecenter, our regional call center operation in
contributes to achieving economies of scale in areas, such as equipment and Colombia, received two first place awards for ‘‘Best Customer Service
technology purchasing, customer service, and broadcast operations. Strategy’’ and ‘‘Best In-House.’’ We believe that providing high-quality
customer service is an important element in minimizing churn and
•Leading Brands. DIRECTV and SKY brands in Latin America are attracting new subscribers. In addition, our ability to implement best
positioned as the leader in digital video entertainment, offering the best practices in customer service from across the region, and from DIRECTV
quality content, technology and customer service available. We believe the U.S., allows us to adapt quickly and efficiently to changes that we face.
strength of our brands is an important factor in our ability to attract and
retain subscribers. In addition, we believe our recognized brand name Business Strategy
enhances our ability to secure strategic alliances with programmers and
distributors. Our vision is to provide customers across Latin America with the best video
experience by leveraging DIRECTV Latin America’s key strengths while continuing
•Relationship with DIRECTV U.S. We believe that our ability to leverage to distinguish our service from our competitors by offering subscribers unique,
the advanced technologies and best practices developed and followed by differentiated and compelling programming through leadership in content,
DIRECTV U.S. enables us to take advantage of its economies of scale, technology, customer service and targeted marketing strategies. Our strategy involves
intellectual property and financial flexibility. Our platforms have set-top box (1) expanding our leadership position across all demographic segments, (2) offering
specifications and middleware technologies that are aligned with DIRECTV unique features and functionality, (3) enhancing productivity and (4) leveraging
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