DIRECTV 2011 Annual Report Download - page 35

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DIRECTV
DIRECTV Latin America’s brands and customer base to introduce complementary we tailored our offers and products to profitably and effectively provide
services. our service to value-focused customers who had the need and desire for
affordable access to our brands and service. Typically, these offers and
•Expand Leadership Position. To achieve our goals, we believe we have to products are similar to our traditional ones except they allow customers
expand our leadership position in several key areas including (1) increasing access to significantly fewer channels and limit the number of set-top
DVR penetration in the higher end markets, (2) strengthening our receivers customers may have in their homes. We plan on continuing
leadership position in high-definition and (3) penetrating the rapidly to serve the value-focused customers through targeted marketing and
growing middle market segment. distribution strategies, as well as leveraging our relationship with
•Increase DVR Penetration. We believe that consumers at the higher end DIRECTV U.S. to obtain lower cost set-top receivers.
of the market are looking for more features and functionality in their •Offer Unique Features and Functionality. To strengthen our brand and
TV viewing, particularly in terms of place and time shifting. From leadership position, we will be focusing on (1) offering unique content and
2010 to 2011, we leveraged our relationship with DIRECTV U.S. to (2) enhancing our programming features.
obtain high quality DVRs that are more functional and less costly than
those of our competitors to distinguish our service from the • Offer Unique Content. We believe that we can enhance our brand and
competition. In most countries in which we operate, our competitors leverage our greater scale to offer unique and compelling content to
either do not offer DVRs or make them available on terms that have subscribers. For example, in many of the territories in which we
significantly limited their penetration. At December 31, 2011, operate we were the only provider of television services where
approximately 27% of our subscribers had advanced products. subscribers could see all of the 2010 FIFA World Cupgames, and
we were the only operator distributing all of the games in HD. In
•Strengthen Leadership Position in HD. Although we expect that the HD some countries, we held exclusive rights to 2010 FIFA World Cup
content offerings will be more limited in Latin America than in the games. Similarly, Sky Brazil, PanAmericana and Sky Mexico have
United States for the next several years and the uptake of HD services licensed exclusive and non-exclusive rights through the 2015 season to
in Latin America will be much slower than in the United States, we the Spanish soccer league, which in most countries is the second most
believe that establishing our leadership position in HD provides us popular soccer league behind the local country leagues.
with a significant competitive advantage across market segments that
are expected to experience continued growth. As of December 31, • Enhance Programming Features. We believe that we can also
2011, Sky Brazil offered its customers 39 HD channels and differentiate our service from that of our competitors through the use
PanAmericana offered its customers on average 10 HD channels. We of enhanced features such as interactivity. For example, we first offered
believe that we currently have the largest HD channel offering in Brazil interactive services for soccer matches from the 2006 FIFA World Cup
and are looking to expand that lead, as well as establish leadership in and provided similar features for the 2010 FIFA World Cup. We have
PanAmericana by increasing the capacity of our current satellite offered similar interactive services for the U.S. Openand Major
servicing the region. In addition, we expect to extend our advantage League Baseball.
with the anticipated launch of our new leased satellites starting in •Enhance Productivity and Manage Costs. Improving productivity is a
2014. critical element of our goal to maintain strong margins particularly given the
•Penetrate Middle Market Segment. Based on extremely low pay rapid growth of our subscriber base and regional scale of our operations. In
television penetration rates and favorable economic and demographic particular, we plan to focus our efforts on productivity improvements. For
trends in the region, we believe the rapidly growing middle market example, we expect to utilize technology to implement process
continues to represent a significant opportunity for growth. In 2011, improvements in our call centers and other areas, such as upgrading our
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