DIRECTV 2011 Annual Report Download - page 78

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DIRECTV
percentage of the average total number of subscribers. We calculate average monthly
subscriber churn by dividing the average monthly number of disconnected
subscribers for the period (total subscribers disconnected, net of reconnects, during
the period divided by the number of months in the period) by average subscribers
for the period.
Subscriber Count. The total number of subscribers represents the total
number of subscribers actively subscribing to our service, including subscribers who
have suspended their account for a particular season of the year because they are
temporarily away from their primary residence and subscribers who are in the
process of relocating and commercial equivalent viewing units.
SAC. We calculate SAC, which represents total subscriber acquisition costs
stated on a per subscriber basis, by dividing total subscriber acquisition costs for the
period by the number of gross new subscribers acquired during the period. We
calculate total subscriber acquisition costs for the period by adding together
‘‘Subscriber acquisition costs’’ expensed during the period and the amount of cash
paid for equipment leased to new subscribers during the period.
***
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