DIRECTV 2012 Annual Report Download - page 31

DIRECTV
although broadcast signals typically cannot reach the entire local market to and services to customers who meet our standard requirements. For these
which the broadcaster is assigned. Full-power broadcasters transmitting in customers, dealers or one of our home service providers install the receiving
digital can offer both programming in high-definition and multiple equipment. The receiving equipment consists of a small receiving satellite dish
programming services per channel. antenna, one or more digital set-top receivers, which are typically leased to the
subscriber, and remote controls. In addition, we offer prepaid service for customers
DIRECTV LATIN AMERICA that desire payment and commitment flexibility. These customers may purchase a
standard-definition receiver and antenna at a regional retailer and pre-pay their
DIRECTV Latin America is a leading provider of DTH digital television DIRECTV service typically through one or more means, such as the purchase of a
services throughout Latin America. DIRECTV Latin America provides a wide rechargeable card that they can acquire at a retailer or local kiosk. The video service
selection of local and international digital-quality video entertainment and audio will automatically disconnect once the credit on the card runs out.
programming under the DIRECTV and SKY brands to approximately 5.3 million
subscribers in PanAmericana and approximately 5.0 million subscribers in Brazil. Key Strengths
Our affiliate, Sky Mexico, has approximately 5.2 million subscribers. Including Sky
Mexico, DIRECTV and SKY provide service to more than 15.5 million subscribers • Large Subscriber Base and Pan-Regional Scale of Service. On a regional
throughout the region. basis, we are a leading provider of pay television services in Latin America.
We believe that our large subscriber base, scale and relationship with
We own 100% of PanAmericana, which provides services in Argentina, Chile, DIRECTV U.S. provides us with the opportunity to obtain programming
Colombia, Ecuador, Puerto Rico, Venezuela and certain other countries in the on favorable terms and secure unique content and features. We also believe
region, 93% of Sky Brasil, which operates in Brazil, and 41% of Sky Mexico, that our large subscriber base contributes to achieving economies of scale in
which operates in Mexico, certain countries in Central America and the Dominican areas such as equipment and technology purchasing, customer service and
Republic. Globo Comunica¸c˜ oes e Participa¸c˜ oes S.A., or Globo, owns the other 7% broadcast operations.
of Sky Brasil and Grupo Televisa, S.A., or Televisa, owns the other 59% of Sky
Mexico. The results of PanAmericana and Sky Brasil are consolidated in our results, • Leading Brands. DIRECTV and SKY brands in Latin America are
and we account for our interest in Sky Mexico under the equity method of positioned as the leader in digital video entertainment, offering the best
accounting. quality content, technology and customer service available. We believe the
strength of our brands is an important factor in our ability to attract and
We believe we provide one of the most extensive collections of programming retain subscribers. In addition, we believe our recognized brand name
available in the Latin America pay television market, including HD sports video enhances our ability to secure strategic alliances with programmers and
content and the most innovative interactive technology across the region. In distributors.
addition, we have the unique ability to sell superior offerings of our differentiated
products and services on a continent-wide basis at a lower cost compared to our • Relationship with DIRECTV U.S. We believe that our ability to leverage
competition. As of December 31, 2012, we provided service to 24% of pay the advanced technologies and best practices developed and followed by
television households in PanAmericana, 31% of pay television households in Brazil DIRECTV U.S. enables us to take advantage of its economies of scale,
and 37% of pay television households in Mexico. intellectual property and financial flexibility. Our platforms have set-top
receiver specifications and middleware technologies that are aligned with
To subscribe to the DIRECTV or SKY service, customers sign up for our DIRECTV U.S., which allows for the launch of new technologies,
video service directly through us or our regional retailers, or independent satellite innovative features and services in advance of our competitors in the region
television retailers or dealers. We tailor our offers and products to profitably and and at a lower cost.
effectively provide our service to various customer segments across the region that
have the need and desire for our brand and service. We offer post-paid products
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