DIRECTV 2012 Annual Report Download - page 22

DIRECTV
PART I Our vision is to make DIRECTV the best video experience anytime and
anywhere for customers in both the United States and Latin America. Our primary
ITEM 1. BUSINESS strategy for achieving this vision is to combine unique and compelling content
DIRECTV, which we also refer to as the company, we, or us, is a leading along with technological innovation and industry-leading customer service to make
provider of digital television entertainment in the United States and Latin America. DIRECTV the clear choice among consumers throughout the Americas. We believe
We operate two direct-to-home, or DTH, business units: DIRECTV U.S. and that our employees’ commitment to excellence is integral to the success of this
DIRECTV Latin America, which are differentiated by their geographic location and strategy and to the future of our company. We intend to advance a service-oriented
are engaged in acquiring, promoting, selling and distributing digital entertainment culture focused on building lifelong customer relationships while maintaining
programming primarily via satellite to residential and commercial subscribers. In financial strength and a cost structure that enables profitable growth in the markets
addition, we own and operate three regional sports networks, or RSNs, and own a we serve.
42% interest in Game Show Network, LLC, or GSN, a television network The DIRECTV team is committed to our company values: leadership,
dedicated to game-related programming and Internet interactive game playing. We innovation, decisiveness, agility, teamwork and integrity. We believe sustaining a
account for our investment in GSN using the equity method of accounting. high level of employee engagement and developing the talent we have among our
•DIRECTV U.S. DIRECTV Holdings LLC and its subsidiaries, or people cultivates an environment of loyalty and can be directly correlated with
DIRECTV U.S., is the largest provider of DTH digital television services increased customer satisfaction, productivity and profitability. Therefore, we have
and the second largest provider in the multi-channel video programming intensified our leadership development programs, and placed an even greater
distribution, or MVPD, industry in the United States. As of December 31, emphasis on diversity and an inclusive workplace culture to foster higher levels of
2012, DIRECTV U.S. had approximately 20.1 million subscribers. innovation, engagement, cross-functional teamwork and collaboration. We also
believe it is important to promote the behaviors that reflect our company values
•DIRECTV Latin America. DIRECTV Latin America Holdings, Inc. and
within the communities that we serve through volunteer service projects, employee-
its subsidiaries, or DIRECTV Latin America, is a leading provider of DTH
driven corporate citizenship programs and meaningful educational initiatives that
digital television services throughout Latin America. DIRECTV Latin
impact and enrich students’ curriculum. In addition, we are supporting sustainable
America is comprised of: PanAmericana, which provides services in
business practices company-wide, to help ensure that our planet is healthy for
Argentina, Chile, Colombia, Ecuador, Puerto Rico, Venezuela and certain
future generations.
other countries in the region, and Sky Brasil Servicos Ltda., or Sky Brasil,
which is a 93% owned subsidiary. DIRECTV Latin America also includes We believe that the successful execution of our stated operating strategies will
our 41% equity method investment in Innova, S. de R.L. de C.V., or Sky create significant shareholder value over the long term by delivering sustainable,
Mexico. As of December 31, 2012, PanAmericana had approximately profitable growth through brand leadership, innovative excellence, world-class
5.3 million subscribers, Sky Brasil had approximately 5.0 million subscribers customer service, increased productivity and disciplined expense management, while
and Sky Mexico had approximately 5.2 million subscribers. also returning excess cash to shareholders. DIRECTV’s common stock trades on the
NASDAQ威 Global Select Market, or NASDAQ, under the ticker ‘‘DTV’’.
•DIRECTV Sports Networks. DIRECTV Sports Networks LLC and its
DIRECTV was incorporated in Delaware in 2009.
subsidiaries, or DSN, is comprised primarily of three regional sports
television networks based in Seattle, Washington, Denver, Colorado and DIRECTV U.S.
Pittsburgh, Pennsylvania, each of which operates under the brand name
ROOT SPORTS威. The operating results of DSN are reported as part of the Through DIRECTV U.S., we provide approximately 20.1 million subscribers
‘‘Sports Networks, Eliminations and Other’’ reporting segment. with access to hundreds of channels of digital-quality video entertainment and
audio programming that we transmit directly to subscribers’ homes or businesses via
high-powered geosynchronous satellites. We also provide video-on-demand, or
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