DIRECTV 2011 Annual Report Download - page 42

DIRECTV
SEGMENT REPORTING DATA Our business, financial condition or results of operations could be materially
and adversely affected by the following:
Operating segment and principal geographic area data for 2011, 2010 and
2009 are summarized in Note 19 of the Notes to the Consolidated Financial We compete with other MVPDs, some of whom have greater resources than we
Statements in Item 8, Part II of this Annual Report, which we incorporate herein do and levels of competition are increasing.
by reference. We compete in the MVPD industry against cable television, telcos and wireless
EMPLOYEES companies and other land-based and satellite-based system operators with service
offerings including video, audio and interactive programming, broadband and other
As of December 31, 2011, DIRECTV U.S. had approximately 15,900 entertainment services and telephony service. Some of these competitors have
full-time and 300 part-time employees, DIRECTV Latin America had greater financial, marketing and other resources than we do.
approximately 9,600 full-time and 1,000 part-time employees and Sports Networks
and Other had approximately 200 full-time employees. Some cable television operators have large, established customer bases and
many cable operators have significant investments in, and access to, programming.
ACCESS TO COMPANY REPORTS Cable television operators have advantages relative to our U.S. operations, including
Our website address is www.directv.com. Our Annual Reports on Form 10-K, or as a result of:
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments • being the incumbent MVPD operator with an established subscriber base in
to those reports filed or furnished, if any, pursuant to Section 13(a) or 15(d) of the the territories in which DIRECTV U.S. competes;
Securities Exchange Act of 1934 are available free of charge through our website as • bundling their video service with efficient two-way high-speed Internet
soon as reasonably practicable after they are electronically filed with, or furnished access or telephone service on upgraded cable systems;
to, the SEC. We are not incorporating by reference in this Annual Report on • having the ability to provide certain local and other programming, including
Form 10-K any information on our website. HD programming, and local advertising in geographic areas where we do
*** not currently provide local or local HD programming; and
DIRECTV, DIRECTV Cinema and the DIRECTV Cyclone Design are • having legacy arrangements for exclusivity in certain multiple dwelling units
trademarks of The DIRECTV Group, Inc. and/or its related entities. Other and planned communities.
trademarks, service marks and trade names appearing in this Annual Report are the In addition, mergers, joint ventures and alliances among wireless or private
property of their respective holders. cable television operators, telcos, broadband service providers and others may result
ITEM 1A. RISK FACTORS in providers capable of offering bundled television, broadband and
telecommunications services in competition with our services.
You should carefully consider the following risk factors. The risks described
below are not the only ones facing our company. Additional risks not presently We do not currently offer local channel coverage to markets covering
known to us or that we currently deem immaterial may also impair our business, approximately one percent of U.S. television households, which places us at a
financial conditions or results of operations. competitive disadvantage in those markets. We also have been unable to secure
certain international programming, due to exclusive arrangements of programming
providers with certain competitors, which has constrained our ability to compete for
subscribers who wish to obtain such programming. And as discussed below, certain
cable-affiliated programmers have withheld their programming from us in certain
markets, which has further constrained our ability to compete for subscribers in
those markets.
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