The DirecTV Group
From Wikipedia, the free encyclopedia
 |
This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (May 2009) |
| Type | Public (NASDAQ: DTV) |
|---|---|
| Founded | 1994 |
| Headquarters | El Segundo, California, U.S. |
| Key people | Michael White, President and CEO (starting January 1, 2010) [1] John Malone, Chairman |
| Industry | Telecommunication |
| Products | Direct broadcast satellite |
| Revenue | ▲US$ 17.25 billion (2008) |
| Net income | ▲US$ 1.45 billion (2008) |
| Employees | 9,200 (2006) |
| Website | directv.com |
The DIRECTV Group, Inc. (NASDAQ: DTV) is an American direct broadcast satellite television company formerly known as Hughes Electronics.
Contents |
[edit] History
Hughes Electronics was formed in 1985 when Hughes Aircraft was sold by the Howard Hughes Medical Institute to GM for $ 5.2 billion. General Motors merged Hughes Aircraft with its Delco Electronics unit to form Hughes Electronics.
The group then consisted of: Delco Electronics Corporation, Hughes Aircraft Company, and Hughes Space & Communications Company.
Hughes Electronics founded DirecTV.
Hughes Electronics and PanAmSat agreed to merge their fixed satellite services into a new publicly held company, also called PanAmSat with Hughes Electronics as majority shareholder.
GM transferred Delco Electronics to its Delphi Automotive Systems business.
The aerospace and defense operations of Hughes Electronics (Hughes Aircraft) were merged with Raytheon. The remaining companies remained under the Hughes Electronics name and within GM.
Hughes Electronics Corporation sold its Hughes Space & Communications Company manufacturing business to Boeing, now renamed Boeing Satellite Development Center.
In December 2003, GM's interests in the remainder of the company, DirecTV, DirecTV Latin America, PanAmSat and Hughes Network Systems were sold to Rupert Murdoch's News Corporation, reorganizing itself into the DirecTV Group. News Corp. actually owned only 39% of DirecTV, however it was the largest single shareholder, and several DirecTV executives had strong links to News Corp, including Chase Carey.
PanAmSat was sold to Kohlberg Kravis Roberts & Co. in August.
SkyTerra Communications, Inc. completed its purchase of 100% controlling interest in Hughes Network Systems from the DirecTV Group in January.
In November 2006, News Corporation agreed to transfer its interest in DirecTV Group to John Malone's Liberty Media. In return it bought back Liberty's shares in News Corp., giving the Murdoch family tighter control of the latter firm.
On February 2008, after receiving FCC approval, Liberty completed its acquisition of News Corporation's stake in DirecTV. In return it bought back its shares of News Corp. However, Liberty was required by the FCC to sell its shares in either DirecTV's Puerto Rican operations or Liberty Global's cable provider in Puerto Rico. DirecTV Puerto Rico was accordingly placed in a trust twelve months later.[2]
On May 4, 2009, DirecTV Group Inc. said it would become a part of Liberty's entertainment unit, part of which would then be spun off as a separate company called DirecTV. Liberty would increase its share of DirecTV from 48 to 54 percent, with Malone and his family owning 24 percent.
The resulting company would own Game Show Networks, FUN Technologies and three regional sports networks that had been part of Liberty.[3]
On November 18, 2009, it was announced that DirecTV hired former PepsiCo International CEO Michael White as its new President and CEO. He will start on January 1, 2010. [1] He will replace Chase Carey, now at News Corporation.
[edit] Carriage controversies
 |
Please help improve this section by expanding it. Further information might be found on the talk page. (August 2009) |
 |
This section may contain original research or unverified claims. Please improve the article by adding references. See the talk page for details. (August 2009) |
[edit] HBO / Cinemax
On July 13, 2007 DirecTV put out a press release claiming it would add the HD versions of HBO 2 (West), HBO 2 (East), HBO Family (East), HBO Family (West), HBO Latino, HBO Signature, and moreMax by the end of September 2007.[4] Currently, the claim has yet to be fulfilled. DirecTV also does not carry HBO Zone, HBO Comedy, @Max, ActionMax, OuterMax, ThrillerMax, 5StarMax and Wmax at all.[5][6] As a comparison, all of the Showtime channels[7] and most of the Starz channels[8] that DirecTV offers are available in HD. (Coincidentally, Starz Entertainment and The DirecTV Group are both owned by Liberty Media).
[edit] Artists and Fans Network
DirecTV added Artists and Fans Network (AFN), a 24-hour country music video to channel 325 on January 21, 2009. However, it was removed on March 25, 2009 without a warning or explanation.
[edit] Versus
On August 18, 2009, DirecTV informed its customers that it may drop Versus after August 31 if a new carriage agreement isn't made with Comcast.[9] Robert Mercer, director of public relations for DirecTV, said: "Versus' overall ratings are poor and have not increased nearly enough to justify what we're paying them, let alone the significant increase they're asking for. He added "It is a significant rate hike and the deal is discriminatory because Versus is not offering the same package options as other distributors." Versus responded in a statement released August 20 that said it has added "many marquee properties" and has become "the fastest-growing sports cable network in the country." [10] The price cable systems pay is reportedly 18 cents per subscriber.[11] The rate Versus is asking of DirecTV is unknown. DirecTV dropped the channel at midnight on September 1, replacing it with the message "Versus is no longer available on this channel. Comcast, which owns Versus, has forced us to take down the channel because we will not submit to their unfair and outrageous demands. For more information go to www.directv.com/versus." DirecTV said it already pays Versus more than any other independent distributor and that the 20% hike it is seeking "for what is basically a paid programming and infomercial channel with occasional sporting events of interest is simply piggish. Comcast has set a market with arms length negotiations with these other distributors and DirecTV expects equal treatment. But we want them to understand that we must hold the line on programming costs and protect them from unwarranted price increases, especially in this challenging economy."
Versus responded by saying "On behalf of millions of passionate sports fans, we are disappointed that DirecTV has chosen to remove Versus from its service and deny their subscribers access to our all-encompassing coverage of the sports they love. Since our last deal with DirecTV, Versus has added many marquee properties and has become one of the fastest-growing sports cable networks in the country. Versus offered DirecTV a fair and reasonable offer to carry the network at the market price. We hope DirecTV will make the right decision for their customers and put Versus back on the air."[12] The next day they said the dispute is about placement, not prices. DirecTV wanted to take Versus away from 6 million subscribers who were receiving it for no additional cost. That was simply not acceptable for us. We hope to resolve things amicably, but that's a non-starter." Those increases aren't true," said Davis. "We're simply asking them to pay what the other providers are paying." He added "If the quote-unquote 'leader in sports' considers the Stanley Cup playoffs and Lance Armstrong's comeback as paid programming and infomercials, then I think the average fan knows they're not the real 'leader in sports.' That's an insult to all the fans of those sports." Versus reportedly charges 27 to 29 cents per subscriber.[13]
Versus launched a national newspaper ad on September 4 saying "Worthless: That's what DirecTV thinks of the sports you love". It then urges DirecTV customers to switch providers.[14]
DirecTV has set up a special email address for customers to voice their opinions on the matter at versus@directv.com.[15]
[edit] Corporate divisions
- DirecTV - U.S Satellite TV
- DirecTV Latin America
- SKY Latin America
- Sky Brasil (Brazil)
[edit] See also
- Hughes Aircraft#Hughes Electronics Corporation for additional historical detail
[edit] References
- ^ a b Multichannel News November 18, 2009 DirecTV Taps PepsiCo Exec White As CEO - Succeeding Carey, Exec Starts New Job On Jan. 1
- ^ http://www.sec.gov/Archives/edgar/data/944868/000104746909001909/a2190991z10-k.htm, Retrieved on May 4, 2009.
- ^ Yao, Deborah (4 May 2009). "DirecTV, Liberty Media Detail Spinoff Plans". Associated Press. http://www.newsobserver.com/business/story/1512847.html. Retrieved 4 May 2009.
- ^ DirecTV Press Release July 13, 2007 DIRECTV to Offer 11 HBO/Cinemax Channels in HD
- ^ DirecTV Official Site - HBO package information
- ^ DirecTV Official Site - Cinemax package information
- ^ DirecTV Official Site - Showtime Unlimited Information
- ^ DirecTV Official Site - Starz Super Pack Information
- ^ DirecTV.com - Versus on DirecTV
- ^ Los Angeles Times August 22, 2009 DirecTV says it will no longer carry Versus network
- ^ Multichannel News August 20, 2009 DirecTV Could Drop Versus - Carriage Expires Sept.1 Unless New Deal Emerges
- ^ Multichannel News September 1, 2009 Versus Pulls Signal In DirecTV Carriage Dispute - Satellite Provider Said It Would Not Agree To 'Ridiculous Demands' From Network's Parent Comcast
- ^ Multichannel News September 2, 2009 Versus-DirecTV Dispute About Subscriber Loss: Davis - Network President Says DBS Provider Wants Sports Service To Shed 6 Million Subscribers
- ^ Multichannel News September 4, 2009 Versus Launches 'Worthless' Ads In Distribution Dispute With DirecTV - Ads, Running In Eight Newspapers, Riff Off DBS Operator's Remarks Demeaning Net's Programming
- ^ NHL.com Open letter to DirecTV fans
