Full Description

DIRECTV Class A, formerly The DIRECTV Group, Inc., incorporated in 1977, is a provider of digital television entertainment in the United States and Latin America. The Company operates in two segments, DIRECTV U.S. and DIRECTV Latin America (DTVLA), which are engaged in acquiring, promoting, selling and/or distributing digital entertainment programming through satellite to residential and commercial subscribers. In July 2008, the Company and 180 Connect Inc. completed the transaction enabling the Company to gain control over a significant portion of its installation and home service network. With the acquisition of 100% of its outstanding common stock, 180 Connect became a wholly owned subsidiary of the Company. In a related transaction, UniTek USA, LLC acquired 180 Connect's cable services operating unit and certain DIRECTV installation services from DIRECTV, in exchange for UniTek's satellite installation services in New York, and Burbank and Bloomington in California. As of December 31, 2008, Liberty Media Corporation owned approximately 53.6% interest in the Company. In November 2009, Liberty Media Corporation completed the split-off of Liberty Entertainment, Inc. (LEI). LEI holds Liberty Media Corporation's 57% interest in DIRECTV, a 100% interest in Liberty Sports Holdings, LLC, a 65% interest in Game Show Network, LLC.

DIRECTV U.S.

DIRECTV Holdings LLC and its subsidiaries, referred to as the DIRECTV U.S., is the provider of direct-to-home (DTH), digital television services and is also engaged in the multi-channel video programming distribution (MVPD) industry in the United States. As of December 31, 2008, DIRECTV U.S. had over 17.6 million subscribers. The Company provides its subscribers with access to hundreds of channels of digital-quality video pictures and compact disc (CD)-quality audio programming that it transmits directly to subscribers' homes or businesses through high-powered geosynchronous satellites. It distributes more than 2,000 digital video and audio channels, including about 200 basic entertainment channels, 40 premium movie channels, over 50 regional and specialty sports networks, over 125 Spanish and other foreign language special interest channels, over 31 pay-per-view movie and event choices, and about 130 national high-definition (HD) television channels.

As of December 31, 2008, the Company provided local channel coverage in standard definition to approximately 150 markets, covering about 95% of United States television households. In addition, it provided HD local channels in 119 markets representing approximately 89% of United States television households. The Company also provides premium professional and collegiate sports programming, such as the National Football League (NFL) SUNDAY TICKET package, which allows subscribers to view a selection of NFL games available each Sunday during the regular season. Under its contract with the NFL, the Company has exclusive rights to provide this service through the 2010 season, including rights to provide related HD, interactive and mobile services.

To subscribe to the DIRECTV service, subscribers acquire receiving equipment from either the Company, its national retailers, independent satellite television retailers or dealers, or regional telephone companies, referred to as telcos. The receiving equipment consists of a small receiving satellite dish antenna, a digital set-top receiver and a remote control, referred to as a DIRECTV System. After acquiring and installing a DIRECTV System, subscribers activate the DIRECTV service by contacting the Company and subscribing to one of its programming packages.

DIRECTV Latin America

DTVLA is a provider of direct to home (DTH) digital television services throughout Latin America and the Caribbean, which includes Puerto Rico. DTVLA provides a range of local and international programming under the DIRECTV and SKY brands to approximately 2.2 million subscribers in PanAmericana and approximately 1.6 million subscribers in Brazil. The Company’s 41% owned affiliate, Sky Mexico, has more than 1.7 million subscribers in Mexico and certain countries in Central America.

The Company owns 100% of PanAmericana (which operates principally in South America and the Caribbean, including Puerto Rico); 74% of Sky Brazil (which operates in Brazil), and 41% of Sky Mexico (which operates in Mexico, Central America and the Dominican Republic). Globo owns the other 26% of Sky Brazil, and Televisa owns the other 59% of Sky Mexico.The Company offers services in PanAmericana and Brazil from leased transponders on two satellites. Sky Mexico provides its services from leased transponders on a separate satellite.

The Company competes with Verizon, AT&T, Dish Network Corporation, Telefonica and Telmex.