DIRECTV 2012 Annual Report Download - page 23

DIRECTV
VOD, by ‘‘pushing’’ top-rated movies onto customers’ digital video recorders, or • Leading Brand Name. We commissioned a study in 2012 which indicated
DVRs, for instant viewing, as well as via broadband to our subscribers who have that 96% of consumers in the United States recognized the DIRECTV
connected their set-top receiver to their broadband service. brand name. We believe the strength of our brand name is an important
factor in our ability to attract new subscribers and retain existing
We believe we provide one of the most extensive collections of programming subscribers. In addition, we believe our recognized brand name enhances our
available in the MVPD industry, including over 185 national high-definition, or ability to secure strategic alliances with programmers, distributors and other
HD, television channels and five dedicated 3D channels. In addition, we offer technology and service providers.
VOD service, named DIRECTV CINEMA威, which provides a selection of over
10,000 movie and television programs to our broadband-connected subscribers. As • Substantial Channel Capacity and Programming Content. As a result of
of December 31, 2012, we provided local channel coverage to markets covering our significant channel capacity, we believe we are able to deliver to our
over 99% of U.S. television households, 98% in HD. subscribers one of the widest selections of local and national programming
available today in the United States, including exclusive programming such
We also provide premium professional and collegiate sports programming such as the NFL SUNDAY TICKET package, critically acclaimed original series
as the NFL SUNDAY TICKET威 package, which allows subscribers to view the content such as Damages and Call Me Fitz, international programming,
largest selection of NFL games available each Sunday during the regular season. premium channels, regional sports networks and one of the most extensive
Under our contract with the NFL, we have exclusive rights to provide this service national HD offerings currently available in the industry. In addition, we
through the 2014 season, including rights to provide related broadband, HD, believe that we offer one of the most comprehensive collections of sports
VOD, interactive and mobile services. programming content available both inside and outside of the home,
To subscribe to the DIRECTV威 service, subscribers sign up for our service highlighted by the NFL SUNDAY TICKET MAX package.
directly through us or our national retailers, independent satellite television retailers •High-Quality Digital Picture and Sound, Including HD and 3D
or dealers, or regional telephone companies, which we refer to as telcos. We or one Programming. Our video and audio programming is 100% digitally
of our home service providers or dealers install the receiving equipment. The delivered, providing subscribers with digital-quality video and sound. We
receiving equipment, which we refer to as a DIRECTV威 System, consists of a small believe this compares favorably with cable providers, as DIRECTV’s picture
receiving satellite dish antenna, one or more digital set-top receivers, which are quality has consistently been rated higher than cable in J.D. Power and
typically leased to the subscriber, and remote controls. After acquiring and installing Associates annual survey. In addition, we believe we currently offer one of
a DIRECTV System, subscribers activate the DIRECTV service by contacting us the nation’s most comprehensive selections of HD channels, including a
and subscribing to one of our programming packages that are tailored to appeal to large collection of 1080p HD movies. Also, we currently offer 3D
specific segments of existing and potential customers. programming on five dedicated channels.
Key Strengths •Sales and Marketing. We sell DIRECTV through a number of distribution
channels, including direct sales, online, telcos, national sales providers, local
•Large Subscriber Base. We are the largest provider of DTH digital sales providers and consumer electronics retailers. We believe this variety of
television services and the second largest MVPD provider in the United distribution alternatives coupled with sophisticated marketing programs has
States, in each case based on the number of subscribers. We believe that our enabled us to continue to grow our subscriber base in an increasingly
large subscriber base provides us with the opportunity to obtain competitive and mature business.
programming on favorable terms and secure unique and exclusive
programming. We also believe that our large subscriber base contributes to •Technology. We devote considerable resources to improving our set-top
achieving other economies of scale in areas such as DIRECTV System receivers, including the middleware for our receivers, as well as developing
equipment purchasing, customer service, installation and repair service, new services. For example in 2012, we introduced the DIRECTV Genie娃,
broadcast operations and general and administrative services.
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