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DirecTV

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This is an old revision of this page, as edited by CSIdisney2000 (talk | contribs) at 02:23, 5 November 2011 (The edits by TomCat4680 were vandalism. FOX was in a dispute w/DirecTV and, that section is called "Programming Disagreements" and the dissagreement w/FOX WAS a programing dissagreement). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

DirecTV
Company typePublic company[1]
Nasdaq: DTV
NASDAQ-100 Component
S&P 500 Component
IndustrySatellite television
FoundedDecember 20, 1985
as Hughes Electronics Corporation
HeadquartersEl Segundo, California, US
Key people
Michael White
(Chairman, President and CEO)[1]
ProductsDirect broadcast satellite
RevenueIncrease US$ 24.102 billion (2010)[1]
Increase US$ 3.896 billion (2010)[1]
Increase US$ 2.312 billion (2010)[1]
Total assetsDecrease US$ 17.909 billion (2010)[1]
Total equityDecrease US$ -194 million (2010)[1]
Number of employees
23,000 (December 2010)[1]
SubsidiariesDirecTV U.S.
DirecTV Latin America
DirecTV Sports Networks
Websitewww.directv.com
A standard DirecTV satellite dish with Dual LNB on a roof

DirecTV (Nasdaq: DTV) is an American direct broadcast satellite service provider and broadcaster based in El Segundo, California. Its satellite service, launched on June 17, 1994, transmits digital satellite television and audio to households in the United States, Latin America, and the Anglophone Caribbean.[2][3] Its primary competitors are Dish Network and cable television providers. At the end of 2010, DirecTV had 19.2 million subscribers.[4] DirecTV's name is a portmanteau of direct (as in direct broadcast satellite), and TV, the common abbreviation for television.

General information

DirecTV provides television and audio services to subscribers through satellite transmissions. Services include the equivalent of many local television stations, broadcast television networks, subscription television services, satellite radio services, and private video services. Subscribers have access to hundreds of channels, so its competitors are cable television service and other satellite-based services.[5]

Most subscribers use reception antennas which are much smaller than the first generation antennas, which were typically a few yards (meters) across. Advances in antenna technology, including fractal antenna layouts, have allowed a general reduction in antenna size across all industries and applications. Receiving equipment includes a satellite dish, an integrated receiver/decoder and a DirecTV access card, which is necessary to operate the receiver/decoder.[6]

Consumers who purchase DirecTV equipment subscribe to various packages of DirecTV programming for which the subscriber pays a monthly fee. Additional monthly fees may include a protection plan (which provides for repair or replacement of consumer leased equipment from damages caused by lightning, power surges, floods, etc.), DVR/HD access, additional receivers, and added premium packages. A subscriber also can order pay-per-view events and movies. DirecTV contracts with and pays program providers such as cable networks, motion picture distributors, sports leagues, event promoters, and other programming rights holders, for the right to distribute their programming to its subscribers. All programming distributed by DirecTV is delivered to its broadcast centers in Castle Rock, Colorado, and Los Angeles, where it is then digitized and compressed. The resulting signal is encrypted by DirecTV to prevent its unauthorized reception. DirecTV then transmits these signals to several satellites located in geostationary orbit.[6]

As of December 31, 2006, DirecTV had approximately 16 million customers in the U.S., 1.4 million in Latin America through its wholly owned subsidiaries, 1.3 million through its 74% ownership of Sky Brasil Servicos Ltda., and 1.4 million though its 41% ownership of Innova, S. de R.L. de C.V. of Mexico.[7] 2006 revenues were US$14.76 billion.[7]

In addition to serving consumers, DirecTV offers service to bars, restaurants, hotels, dorms, and hospitals through their DirecTV for business service. The company also offered mobile service for cars, boats, and RVs (DirecTV Mobile) as well as aircraft (DirecTV Airborne) in cooperation with Connexion by Boeing.

Assets

DirecTV owns regional sports networks Root Sports Pittsburgh, Root Sports Northwest, Root Sports Rocky Mountain, and Root Sports Utah (all under the umbrella of DirecTV Sports Networks). DirecTV also owns the majority of Game Show Network, and a minority stake in MLB Network.

Exclusive content

DirecTV has its own exclusive general entertainment channel called Audience Network, and an exclusive 3DTV channel called n3D. DirecTV is also the exclusive U.S. rights holder to sports packages NFL Sunday Ticket, NASCAR Hot Pass, and the "DirecTV Experience" (bonus coverage of Men's Majors Golf Tournaments and Grand Slam Tennis Tournaments).

History

Hughes Electronics logo

In 1953, Howard Hughes created the Howard Hughes Medical Institute (HHMI), to which he transferred full ownership of Hughes Aircraft. Ostensibly created as a non-profit medical research foundation, HHMI was accused of being used by Hughes as a tax shelter. After Hughes' death in 1976, litigation ensued as to whether HHMI would be allowed to maintain its interest in Hughes Aircraft, which had been incorporated in 1977 following Hughes' death. In 1984, the court appointed a new board for HHMI, which proceeded to sell off Hughes Aircraft to General Motors on December 20, 1985 for an estimated $5.2 billion. General Motors then merged Hughes Aircraft with its subsidiary Delco Electronics to create Hughes Electronics Corporation. The new subsidiary was initially composed of four units: Delco Electronics Company, Hughes Aircraft Company, Hughes Space and Communications Company, and Hughes Network Systems.

Stanley S. Hubbard founded United States Satellite Broadcasting (USSB) in 1981 and was a leading proponent for the development of direct broadcast satellite service in the United States. USSB was awarded 5 frequencies at the coveted 101 degree west satellite location by the FCC. Hughes Communications, Inc. was also awarded 27 frequencies at the same 101 degree location. After waiting many years, the technology evolved to enable the building of very high power satellites and digital compression (MPEG 2) standards were developed that allowed multiple digital television channels to be sent through each satellite frequency.

After Hughes failed to complete a joint venture with NBC, News Corp, and Cablevision, in 1990, to launch the first high power digital television service called Sky Cable[8], the company created DirecTV as a separate division and secured an agreement with USSB to build and launch the first high power direct broadcast satellite system. Hughes/DirecTV then turned to Thomson Consumer Electronics (under the RCA brand) to develop the digital satellite system for the service that would be capable of receiving 175 channels on a small 18-inch dish. These dishes utilized a new generation of smaller, lighter receiver dishes based on military technology introduced by the Global Broadcast System, which predated DirecTV's viability by almost 10 years. Hughes was awarded the contract to build and launch the new high-powered satellites and USSB and DirecTV agreed that the new satellites would carry the two separate programming services: USSB and DirecTV.

File:DirecTV logo.svg
An alternate, 2-D version of the DirecTV logo from 2005 to 2010, first used in December 2004 as an update to the original 1994 logo.

On June 17, 1994, the USSB and DirecTV programming services were launched. Digital Equipment Corporation provided the hardware for DirecTV, Matrixx Marketing, (part of Cincinnati Bell) provided customer care via the Matrixx Plus department, and DBS Systems created the billing software. In December 1998, DirecTV acquired USSB for $1.3 billion and combined the two satellite services.[9] In 1999, DirecTV acquired PrimeStar, a competitor in the satellite television industry, for $1.83 billion, dramatically increasing its share of the satellite television market in the US.[10]

In September 1996, Hughes purchased 70% of PanAmSat for $3 billion.[11] In 1997, GM spun off Delco Electronics from Hughes and transferred it to Delphi Automotive Systems.[12] That same year, Hughes Aircraft was sold to Raytheon for $9.5 billion.[13] Raytheon filed a lawsuit in 1999 accusing Hughes of overstating the value of Hughes Aircraft by $1 billion.[14] A $635.5 million settlement was reached in 2001.[15] In 2000, Hughes Space and Communications was sold to Boeing for $3.75 billion,[16] which it later claimed had also been overvalued by Hughes. Hughes later settled with Boeing for $360 million.[17] These sales left DirecTV, PanAmSat and Hughes Network Systems as the remaining components of Hughes Electronics.

In September 2000, GM executives, under pressure from its shareholders as a result of GM's poor performance and the substantially greater market worth of Hughes, authorized Hughes executives to begin seeking buyers.[18] In 2001, News Corporation began negotiations to acquire Hughes Electronics in a deal worth $8 billion, which would allow News Corp. to expand its Sky Global Networks satellite television operations into the United States.[19] Negotiations with News Corp. ultimately failed, and Hughes entered into an agreement on October 28, 2001 to be purchased for $26 billion by EchoStar, owner of Dish Network.[20] However, the deal attracted significant opposition from the Department of Justice and the Federal Communications Commission due to antitrust concerns, leading the two companies to withdraw the agreement in December 2002.[21] As part of the merger agreement, EchoStar was required to pay Hughes $600 million due to the failure of the merger.[21]

On April 9, 2003, News Corporation agreed to purchase a 34% controlling interest in Hughes, including GM's entire share of the company, for $6.6 billion subject to SEC approval.[22] As part of the financing for the deal, Liberty Media agreed to take a $500 million option of stock in News Corporation that would be exercised upon the closing of the deal. Liberty, the second-largest shareholder in News Corp. after the Murdoch family with 18%, had originally planned to bid for DirecTV, but opted not to upon the agreement.[22] The SEC voted 3–2 along party lines on December 19, 2003 to approve the deal subject to conditions, forcing News Corp. to agree to arbitration for all disputes with carriers of its media broadcasters and to provide content through DirecTV neutrally rather than favoring its own networks.[23]

Year Subscribers
1994 320,000
1995 1,200,000
1996 2,300,000
1997 3,301,000
1998 4,458,000
1999 6,679,000
2000 9,554,000
2001 10,218,000
2002 11,181,000
2003 12,290,000
2004 13,000,000
2005 15,000,000
2006 15,950,000
2007 16,830,000
2008 17,620,000
2009 18,081,000
2010 19,200,000

In February 2004, Hughes announced its intent to focus solely on its satellite television operations and divest its other interests, renaming itself The DirecTV Group, Inc. on March 16, 2004 and changing its ticker symbol from "HS" to "DTV".[24] In April of that year, it sold its controlling interest in PanAmSat to a private consortium led by Kohlberg Kravis Roberts for $3.53 billion.[25] On April 22, 2005, DirecTV spun off Hughes Network Solutions into a separate entity and sold 50% of the new entity to SkyTerra, acquiring $157.4 million in the transaction.[26] In January 2006, DirecTV sold its remaining 50% share in Hughes Network Solutions to SkyTerra for $100 million.[27] The sale effectively ended DirecTV's 20-year existence through Hughes Electronics as a technology conglomerate, leaving it solely with its satellite television services.

In 2004, DirecTV abandoned the Mexican market, though it maintained 41% ownership of Sky Mexico.[7] On November 15, 2005, DirecTV stopped carrying Music Choice audio-only channels, replacing it with 73 channels of XM Satellite Radio. In 2007, DirecTV abandoned the Brazilian market, with the customers being migrated to the 74% DirecTV-owned Brazilian affiliate of SKY Brasil.[7] In 2010, DirecTV increased its stake in Sky Brazil to 93%.

On January 9, 2007, DirecTV announced that they would introduce up to 100 national HD channels during 2007, all of which would be MPEG-4 encoded.[28] On October 15, 2007, DirecTV announced that they had 70 national high-definition channels available, with up to 100 coming by year end.[citation needed] On October 3, 2008, DirecTV announced that it would offer HD local channels in 121 markets by year-end.[29]

On December 13, 2007, DirecTV purchases most of the assets of ReplayTV from D&M Holdings.[30] In August 2009 DirecTV acquired Home Services Provider Connect Television Inc., increasing its workforce by more than a thousand employees.

In December 2006, News Corporation announced its intention to transfer its 38.5% controlling interest in The DirecTV Group, three regional Fox Sports Net stations and $550 million cash to Liberty Media in exchange for Liberty's 19% interest in News Corp., giving the Murdoch family tighter control of the latter firm.[31] The deal, valued at $11 billion, was approved by News Corp. shareholders in April 2007.[32] Following revisions that increased the cash offer to $625 million in exchange for a reduction of Liberty's divested interest in News Corp. to 16%, the swap was completed on February 27, 2008 following FCC approval.[33] One condition placed by the FCC on the deal was that Liberty divest either its DirecTV operations or Liberty Global's cable operations in Puerto Rico, which Liberty fulfilled by placing DirecTV's Puerto Rican operations in a trust.[34]

On May 4, 2009, Liberty announced that it would split off Liberty Entertainment, Inc., a subsidiary of Liberty owning the three FSN channels acquired under the swap with News Corp. and Liberty's 65% interest in GSN, into a separate company that would merge with The DirecTV Group, reducing Liberty owner John Malone's stake in DirecTV to 24%.[35] The merger was completed on November 19, 2009, with The DirecTV Group and Liberty Entertainment becoming subsidiaries of a new company named DirecTV.[36] On June 16, 2010, Malone exchanged his preferred stock in DirecTV with equivalent amounts of common stock, reducing his voting interest in the company from 24% to 3%, with Malone resigning as Chairman and ending his managerial role at DirecTV.[37]

On Feb 9, 2010, DirecTV dropped Sirius XM Radio and replaced the channel lineup with Sonic Tap audio stations.[38] On April 1, 2011, DirecTV announced it would be renaming its three FSN channels as Root Sports, though the channels are still affiliated with FSN.[39]

Programming Disagreements

Like other television providers, DirecTV had its fair share of recent carriage disputes with the networks and/or broadcast companies.

Versus

On August 18, 2009, DirecTV informed its customers that it may drop Versus after August 31, 2009 if a new carriage agreement wasn't made with the network's owners Comcast.[40]

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 directv.com/versus."

On March 15, 2010 an agreement was reached between the sides and Versus returned to DirecTV's lineup. The channel was returned to its original package on the service, Choice Xtra.[41]

G4

DirecTV announced that they were removing G4 from its channel lineup on November 1, 2010.[42] In its decision to drop G4, DirecTV cites low interest in their subscriber base and Nielsen Ratings as the primary reason for dropping of the channel.[43][44] DirecTV commented that they were "...unable to reach an agreement to continue carrying the G4 channel and it has been removed from the DirecTV channel lineup."[45] The dispute was never resolved, and G4 remains absent from DirecTV's lineup.

FOX

On October 25, 2011, DirecTV showed a warning on FX saying that FX, National Geographic Channel, and a few other FOX channels were going to be removed from the DirecTV line up, due to a dispute. On November 1, 2011, the day that FX, and other FOX channels were supposed to be removed from the line up, DirecTV showed a INFO channel below FX, on the channel the screen stated:

DIRECTV has reached an agreement with News Corp/FOX to continue carrying all FOX owned channels, including this one.
There will be NO disruption in service. All channels will remain on the air, including FX, all regional sports networks, FOX News Channel, and your local FOX station.
We apologize for any inconvenience and thank you for your patience.

It is unknown what the dispute was about, but considering FOX's issues in the past with Dish Network, FOX probably wanted more money from DirecTV.

Here is a list of FOX Networks that would have been effected by this disagreement:

FX
National Geographic Channel
Nat Geo WILD
SPEED
FUEL TV
Fox Movie Channel
Fox Soccer
Fox Soccer Plus
Fox Deportes
Fox regional sports networks
Fox News channel
Fox Broadcasting (FOX)
Fox Business Network
Your local FOX station

Receivers

In the past, receivers were manufactured by DirecTV and other companies. Other companies' DirecTV receivers have been phased out and DirecTV now designs their own models with companies such as Pace Micro Technology of Britain, LG of South Korea, and Thomson of France. DirecTV and TiVo announced on September 3, 2008, that they will work together to develop a version of the TiVo service for DirecTV's broadband-enabled HD DVR platform.[46] Originally scheduled to launch in the second half of 2009, it was expected to be available in spring 2010.[47] As of August 2011, it has not yet appeared.

DirecTV typically uses a fixed 18-inch-diameter (460 mm) dish antenna to receive its signals. Traditionally an 18×24-inch elliptical was used; however, most new installations use an 18×20-inch antenna to receive signals from three geostationary satellite positions simultaneously. These systems are becoming more common as DirecTV attempts to squeeze more programming onto its growing systems. DTV is now installing a dish that has five LNBs for HDTV programming and local channels in selected markets. These systems receive signals from up to five separate satellites in both the Ku band and Ka band. After the new satellite, DirecTV 11, is fully operational, DirecTV will stop supplying dual, triple, and five-LNB dishes to all customers and move to supplying a three-LNB Ka/Ku dish known as the Slimline3. This dish will see orbital locations 99, 101, and 103 degrees West. The Slimline3 will be the new standard install dish (for HD and SD programming), while the five-LNB Slimline will be used for installs in areas that receive local or international programming from orbital locations 110 or 119. The Slimline3 looks nearly identical to its predecessor, aside from a smaller LNB.

The new DirecTV HD channels require an H20/HR20 or H21/HR21/HR22/HR23/H24/HR24 set top box (STB). In order to receive the new HD channels (channels added after September 2007), all HD receivers except the HR23 must have a B-Band converter installed. If the converter is not installed, viewers can only receive older HD channels (channels 70–99). The B-Band Converter (BBC) is also not required with the new Single Wire Mulitswitch (SWM or SWiM) system, which preselects the satellite and transponder tuning and can feed up to 8 tuners via a single coaxial cable. The "HR" moniker designates the receiver as a HD digital video recorder (DVR) model.

Only the H20/HR20 support direct reception of over-the-air ATSC broadcasts. The H21/HR21/HR22/HR23/H24/HR24 receivers do not have a built in ATSC tuner, but the AM21 external tuner is available. In addition, there is HDMI support for HDTVs with an HDMI port. New STBs also support MPEG-4 standard for HD *Programming. DirecTV also offers the AM21 (an ATSC add-on for the HR21), the HR21-Pro (a HD-DVR with 100 hours HD or 400 hours SD recording capacity), and an online DVR scheduler.

  • DirecTV Receiver is a common standard-definition model. D12 was the last one produced, as this type of receiver is being slowly phased out, according to DirecTV's February 28, 2008 Investors Info.
  • DirecTV HD Receiver (H10/H20/H21/H23/H24/H25) is a receiver which can receive an HD signal and broadcast in 1080i resolution. H25 is the latest version. After a 2009 software upgrade, the H2n series is capable of receiving 1080p resolution. The H2n series is also the only series capable of operating with the Whole-Home DVR, starting with the H21.
  • DirecTV Plus DVR (R15/R16/R22) is a standard receiver with a built-in digital video recorder. It contains a 160 GB (new models as of 2010 have a 360 GB) hard disk using the IDE 40-pin connection and can store up to 100 hours of programming. R16-300 is the last of these line of receivers; they are being slowly phased out, according to DirecTV's February 28, 2008 Investors Info. The R22 is a "watered down" HR21 as it can receive MPEG4 and has all the features of the HD DVR, including HD output. however the unit is locked to output standard definition only.In 2010 the R22 is unlocked to output HD output.
  • The DirecTV Plus HD-DVR (HR20/HR21/HR22/HR23/HR24), the most advanced everyday-consumer receiver in the lineup, is capable of full 1080p high definition and combines both high-definition and DVR capabilities in one unit. It contains a 320 GB hard drive (500 GB on the HR22, HR23,and HR24) using the SATA interface connection. The DirecTV Plus HD DVR also features Media Share, allowing you to view photos and listen to music stored on your computer (with compatible DLNA server software) on your TV, and Whole-Home DVR Service which allows you to watch any recorded program on any HD or HD-DVR receiver in the house. The HR24 is the latest, with the HR23 being its predecessor. The HR24 like the HR21, HR22,and HR23, lacks an ATSC tuner as the HR20s had.
  • The DirecTV Pro HD-DVR, (HR34) the most advanced home theater receiver with HD and DVR in one unit, has a larger capacity hard drive, better cooling and is rack mountable. The DirecTV Pro HD DVR also features Media Share, allowing you to enjoy photos and music stored on your Intel Viiv processor technology-based PC on your TV. HR24 is the latest (May 2010). Guide scrolling and channel surfing is much faster than previous models.
  • DirecTV Sat-Go (“Satellite-To-Go”) is the world's first portable satellite TV system, conceived by producer Rick Rosner.[48] It combines a receiver, antenna and TV all in one easy-to-carry unit.

DirecTV has introduced a new line of remotes to go with their new receivers.

  • Universal Remote (All remotes control receiver, TV, and two other devices.) An infrared remote that is pointed at the receiver to operate and stores device control codes, even when batteries are changed.
  • Universal RF Remote RC64RB This remote is essentially the same as the above, but with RF functionality to allow it to control the system through floors, walls, etc.
  • Big Button Remote The standard Universal Remote, enlarged for easier use.

Access card history

DirecTV transmits programming with encryption to mitigate signal piracy. The receiver (also known as an IRD, or "integrated receiver-decoder") utilizes ISO/IEC 7816 smart cards which tell the receiver how to decrypt the programming for viewing. In a continuing effort to combat piracy, an access card generation is created approximately every two years, superseding the old set. DirecTV is now utilizing a fifth generation of access cards.

  • P1, also known as F cards, were used until 1997. F cards have a picture of a satellite on the front.
  • P2, also known as H cards, were introduced in 1996 and eventually replaced F cards. H cards look the same as F cards. H cards were in use until 2002.
  • P3, also known as HU cards, were introduced in 1999 and were used until April, 2004. HU cards have a picture of a football player on the front. HU cards originally shipped with receivers with serial numbers above 0001 700 000. These were removed from circulation due to high piracy plaguing the system.
  • P4 cards were introduced in 2002 and are currently still in use. P4 cards are labeled "Access Card: 4."
  • D1 cards were introduced in 2004 following compatibility problems with the P4 cards in some receivers. These cards can be identified by the silver edges, and simply bear the word "DirecTV" on the front (no number).
  • D2/P12 cards were introduced in 2005. This is the current "standard issue" card. These cards can be identified by a two-toned blue dot pattern resembling the DirecTV logo in addition to the DirecTV logo and the words "DirecTV Access Card". This card has a picture of a satellite on the front. The period 12 card is the only card that will work with R15, H20, and HR20 series receivers.

DirecTV has long been a victim of an active signal piracy underground, but has recently begun to crack down on illegal reception of its signals. On its anti-piracy website, DirecTV claims to have sued over 25,000 end users, including celebrity O.J. Simpson. As of  2010, the new access cards and signal encryption remain unbroken.[citation needed]

High-definition television (HDTV)

DirecTV AU9-S 5-LNB "Slimline" satellite dish
DirecTV AT-9 5-LNB "Sidecar" satellite dish

Like its competitors, DirecTV offers high-definition television (HDTV) and interactive services.

To handle the proliferation of bandwidth-intensive HDTV broadcasting, DirecTV rebroadcasts local HDTV stations using the H.264/MPEG-4 AVC codec while employing a newer transmission protocol (DVB-S2) over the newer satellites. This allows DirecTV to squeeze much more HD programming over its satellite signal than was previously feasible using the older MPEG-2 compression and DSS protocol it has been using. This technology will be gradually expanded to the existing satellites as customer equipment is replaced with new MPEG-4-capable receivers.

Receiving the channels encoded in MPEG-4 requires newer receivers, such as the H20 as well as the 5-LNB Ka/Ku dish. DirecTV has contracted with Britain's Pace Micro Technology, Korea's LG Electronics and France's Thomson to manufacture these new receivers. Pace manufactures the DirecTV Plus HD DVR (Model HR20-700, and HR21-700) and LG Electronics offers the Model H20-600 receiver, while Thomson provides the Model H20-100 and HR20-100 DVR receivers. DirecTV has admitted to software issues with some of the H20 receivers and HR20 DVRs, which have been plagued with random problems since they were released in mid-2006. DirecTV regularly released software updates for the HR20 receivers, in an effort to reduce issues to an acceptable level.

DirecTV has phased out its original TiVo-branded HD DVR, the HR10-250, which can only decode the older MPEG-2 signals. All DirecTV-delivered local HDTV stations (outside of the NYC and LA network stations) are encoded in MPEG-4. The HR10-250 cannot receive the MPEG-4 local HDTV stations in these markets but can still receive over-the-air ATSC broadcasts in these markets. After a multi-year hiatus, TiVo and DirecTV are developing a new TiVo enabled HD DVR that will be able to receive/decode DirecTV's current MPEG-4 satellite signals. Originally slated for release in the second half of 2009, no official amended launch date has been set. Both DirecTV and TiVo claim development is ongoing, the project has not been canceled, and they are "optimistic" the DVR will be released in 2011.[47][49]

Local channels

Main article: List of DirecTV local channels

DirecTV also offers local channels (CBS, ABC, NBC, Fox, PBS, The CW, Telemundo, Azteca, MyNetworkTV, ION Television (in markets that carry that network), and some independent stations) in 92% of US markets. In markets that lack a CW affiliate, DirecTV includes WDCW from Washington, D.C. or XETV from San Diego.

Subscribers located where they cannot receive a decent terrestrial television signal and/or live in a tiny market that only has a couple of stations can receive feeds from New York and Los Angeles for CBS, ABC, NBC, and Fox, as well as a feed from the Washington, DC CW affiliate, though a waiver from the local affiliate stations may be required to allow this, approved at their discretion. National PBS and ION channels are also available.

In the largest markets, local channels are carried on the satellite at 101°W. In some smaller markets, the local channels are carried on a second satellite located at 119°W which requires a slightly larger dish with two or three LNBs or the newer Ka/Ku 5-LNB dish. In a few smaller markets, local stations are located on a satellite at 72.5°W that requires a second dish to be installed.

In late 2005, DirecTV began providing local HDTV channels to the largest markets, requiring newer receivers with a larger dish capable of receiving signals from up to five satellites at once. The Ku-band signals on the newer Ka/Ku dish are received from 101°W, 110°W, and 119°W, while Ka-band signals are from 99°W and 103°W.

Local television channels are transmitted over optical fiber links, Ku-band satellite uplink, microwave, and conventional terrestrial transmission to uplink centers located throughout the United States. DirecTV can provide true HD into hotels (Pro:Idiom). Cable companies have been able to provide true HD to hotels for over 2 years now with the installation of private video networks (FTTP to Coax conversion & Pro:Idiom) or with HFC HD video distribution systems (Pro:Idiom).

Satellite fleet

Main article: DirecTV satellite fleet

DirecTV currently uses 12 satellites. Its 13th is currently being built.

Marketing and commercials

Beginning in 2006, DirecTV began a series of commercials in which characters from popular movies and television shows break the fourth wall to tout the service's picture quality and the number of channels available in high definition. Instead of using CGI the original actors normally reprise their roles on recreated sets, and resulting footage is mixed with the original scenes. The productions must be recent, due to the use of original actors, and appeal to DirecTV's "male-oriented marketing message."[50]

These characters include Captain Kirk (William Shatner, Star Trek VI: The Undiscovered Country), Bill Harding (Bill Paxton, Twister) , The Economics Teacher (Ben Stein, Ferris Bueller's Day Off), Dr. Emmett Brown (Christopher Lloyd, Back to the Future), Burton Guster (Dule Hill, Psych), C.J. Parker (Pamela Anderson, Baywatch), Rick "Wild Thing" Vaughn (Charlie Sheen, Major League), Beyoncé (Upgrade U music video), Nadia (Shannon Elizabeth, American Pie), Turtle (Jerry Ferrara, Entourage), Ellen Ripley (Sigourney Weaver, Aliens), Steve Freeling (Craig T. Nelson, Poltergeist), Annie Wilkes (Kathy Bates, Misery), Mini-Me (Verne Troyer, Austin Powers In Goldmember), The Girl in the Ferrari (Christie Brinkley, National Lampoon's Vacation), Daisy Duke (Jessica Simpson, The Dukes of Hazzard), T-1000 (Robert Patrick, Terminator 2: Judgement Day), Ann Darrow (Naomi Watts, King Kong), Hellboy (Ron Perlman, Hellboy), Richard Hayden (David Spade, Tommy Boy), The Black Eyed Peas (Meet Me Halfway music video), Christina Aguilera (Keeps Gettin' Better music video) and Honey Hornee (Kim Basinger, Wayne's World 2). Also in this series of commercials were Peyton Manning, Eli Manning, and Archie Manning promoting NFL Sunday Ticket, and Dale Earnhardt, Jr. promoting NASCAR Hot Pass. Cartoon characters have also been used in the ads, beginning with Scooby-Doo and the Mystery, Inc. gang.

DirecTV during that time also ran series of ads that takes shots at cable television's service (or lack of service). Beginning in March 2010, they did a spoof of the classic game show To Tell The Truth with Alex Trebek hosting the show. The series of commercials both pays homage to the Goodson-Todman game show, and take shots at both cable and DirecTV's arch rival Dish Network, who later sued for false advertising. Dish says DirecTV's ads claim a misleading number of HD channels at a price that doesn't include any HD. Dish also says DirecTV misleads consumers by saying it can offer 200 HD channels when it really offers about 130. Dish says the ads end with the promotional price of $29.99 a month, which it says doesn't include HD. [citation needed] Another series of commercials, promoting the 2010 NFL Sunday Ticket package of all-football programming, featured neighbors committing uncivil acts to neighbors who watched the "wrong" football team. One spot had a woman leaving a snack platter for a neighbor on which the food spelled out "DIRT BAG"; another showed a dog trashing a neighbor's property; yet another showed an on-duty policeman knocking on a DirecTV customer's door, stunning him with a taser and leaving him passed out in his open doorway. In August 2011, Deion Sanders began appearing in DirecTV's ads for NFL Sunday Ticket, urging people to switch from cable. These ads originally claimed NFL Sunday Ticket is now "free" for new customers for one year with a subscription to their Premiere package and a two year contract. In response, on August 4, 2011, Comcast sued DirecTV for false advertising. [51] Comcast dropped the case on August 19, 2011 after DirecTV altered the ads to remove the word "free", changing it to "at no extra charge". [52]

Customer service

DirecTV service van, Ypsilanti Township, Michigan. As shown, DirecTV equipment is installed and maintained by private contractors.

DirecTV was awarded a J.D. Power award for residential cable and satellite TV customer satisfaction in 2007.[53]

DirecTV's customer service is provided by many third-party owned call centers both inside and outside the United States. DirecTV also has a subsidiary named DirecTV Customer Service LLC, which owns call centers in Denver, Colorado (opened in 2007); Boise, Idaho; Huntsville, Alabama; Missoula, Montana; Tulsa, Oklahoma; Pharr, Texas; and, most recently, Huntington, West Virginia. N.E.W. provides technical assistance by phone to customers who subscribe to DirecTV's Protection Plan. Most of the call centers are contracted to provide agents to answer customer phone calls regarding billing or technical questions. [citation needed]

Washington State's Attorney General civil complaint

On December 14, 2009 the Washington Attorney General's office filed a civil complaint against this company seeking injunctive and other relief. The complaint was filed in the public interest when the Attorney General's office determined after a one year investigation by its Consumer Protection Division, that the company allegedly engaged in numerous repeated violations of the state’s Consumer Protection Act.

The complaint alleges unfair or deceptive practices which include, but are not limited to unclear disclosures concerning rebate terms and conditions, unclear and/or unfair advertising for use of the term “free;” automatically extending contracts when customers require equipment repairs, upgrade equipment or move; failing to disclose finance terms and conditions that the company’s least expensive package of $29.99 per month is only available to customers who meet certain financing conditions and agree to have the costs automatically charged or debited. The suit also alleged that some cancellation fees accessed by the company were considered to be unfair, and that the company unfairly retained consumer deposits made to obtain services. Those who cancel service prior to the end of their contract lose part of the deposit and may also be charged cancellation fees.

The Attorney General’s Office is asking the court to compel DirecTV to change its business practices, impose civil penalties and provide restitution for consumers. The case is currently pending.[54]

  • Since these complaints have been filed, DirecTV's customer service support departments nationwide and abroad have been provided with clear directives to continue to disclose DirecTV's policies concerning lease agreements and consumer contractual obligations. All inquiring customers have the right to decline service with the company if not in agreement with these policies prior to activation. These disclosures are provided to consumers upon inquiry regarding new services, in order that the customer may submit to said agreements in compliance with DirecTV's policies. This information is also readily available on the company's website in the disclosure and agreement section listed below all packaged advertisements. All advertised pricing is based upon offers pending credit approval, which DirecTV maintains is the standard to obtain new service. [citation needed]
  • Any credit not approved upon setting up a new account may be able to access an unapproved credit offer which maintains a customer may still have the ability to lease up to 2 standard receivers only and the package of their choosing. All existing terms and agreements apply upon activation of a new DirecTV account. [citation needed]

California class action lawsuit

In September 2008, consumers filed a class action lawsuit with the Los Angeles Superior Court to stop DirecTV's practice of charging early cancellation penalties to subscribers. The lawsuit claims that DirecTV fails to disclose the penalty to new customers or to existing customers who replace their equipment or add a new receiver, and that these practices are unlawful. In September 2009, a motion for a preliminary injunction was filed to block the company from automatically removing the fees from customers’ bank accounts or charging their credit card accounts without their prior knowledge and written consent until the lawsuit is resolved.[55]

Telemarketing violations

In December 2005 the U.S. Federal Trade Commission imposed a $5.3 million penalty on DirecTV for its violations of federal telemarketing regulations. It was the largest civil penalty the FTC had ever announced in a case enforcing any consumer protection law.[56]

Better Business Bureau Review

In August 2008, The Boston Globe reported that DirecTV received 20,000 complaints in less than three years to the Better Business Bureau on DirecTV slipping in cancellation fees.[57]

As of June 2010, the Better Business Bureau gives DirecTV an F rating.[58]

As of June 2010, the 36-month running count of complaints about DirecTV logged with the Better Business Bureau is 39,292, including 8,275 with a response of "Full refund" or "Partial refund", 15,519 with a response of "Agreeing to perform according to their contract", 15,085 with a response of "Refuse to adjust, relying on terms of agreement", and 405 with a response of "Refusing to make an adjustment".[58]

See also

References

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  2. ^ DTV Group (June 26, 2010). "DirecTV Caribbean". DirecTV. Retrieved June 26, 2010.
  3. ^ Staff writer (January 17, 1997). "DirecTV launches first satellite service to Caribbean". South Florida Business Journal. Retrieved June 26, 2010.
  4. ^ DirecTV posts 2010 4Q results
  5. ^ "DirecTV – Our Company". DirecTV, Inc. Retrieved April 5, 2009.
  6. ^ a b Vines, James K. (February 20, 2003). "Smyrna Businessman Pleads Guilty in Satellite Piracy Case". U.S. Department of Justice. Retrieved April 5, 2009.
  7. ^ a b c d DirecTV Group Form 10-K, filed with the United States Securities and Exchange Commission, dated March 1, 2007, URL retrieved March 26, 2007
  8. ^ http://articles.latimes.com/1990-02-22/news/mn-1704_1_cable-operator
  9. ^ Cory Grice (December 14, 1998). "Hughes buys satellite firm for $1.3 billion". CNET news.
  10. ^ Joanna Glasner (January 22, 1999). "DirecTV Buys PrimeStar". Wired.
  11. ^ Mark Lander (September 20, 1996). "Hughes Deal For Panamsat Is Reported To Be Complete". NY Times.
  12. ^ Bill Bowman. "Delco Electronics Corporation". GM Heritage Center.
  13. ^ James F. Peltz (January 17, 1997). "Raytheon Acquires Hughes Wing in $9.5-Billion Deal". L.A. Times.
  14. ^ "Raytheon, GM in Dispute Over Hughes Sale". L.A. Times. January 28, 1999.
  15. ^ "2001 Form 10-K, Hughes Electronics Corporation". United States Securities and Exchange Commission. March 11, 2002.
  16. ^ "Fact Sheet: Boeing Acquisition of Hughes Space and Communications Business". Boeing Corporation.
  17. ^ "Hughes, Boeing reach settlement on satellite sale dispute". spacetoday.net. July 17, 2003.
  18. ^ Sallie Hofmeister (September 7, 2000). "GM Revving Up the Bidding War for Hughes Sale". L.A. Times.
  19. ^ "Murdoch's DirecTV purchase 'approved'". BBC News. February 9, 2001.
  20. ^ "EchoStar wins DirecTV". CNNMoney. October 29, 2001.
  21. ^ a b George Mannes (December 10, 2002). "Hughes-EchoStar Split Leaves PanAmSat Hanging". The Street.
  22. ^ a b Nic Hopkins (April 10, 2003). "News Corp buys control of DirecTV". The Times.
  23. ^ "FCC OKs News Corp. purchase of DirecTV". MSNBC. December 19, 2004.
  24. ^ "2004 Form 10-K, The DirecTV Group". U.S. Securities and Exchange Commission. March 17, 2004.
  25. ^ "DirecTV Agrees to Sale of PanAmSat Unit". L.A. Times. April 24, 2004.
  26. ^ "2005 Form 10-K, The DirecTV Group, Inc". U.S. Securities and Exchange Commission. March 10, 2006.
  27. ^ "SkyTerra Communications Acquires Remaining Interest in Hughes Network Systems LLC from The DirecTV Group". SkyTerra Communications, Inc. January 3, 2006.
  28. ^ DirecTV to carry 100 National HD Channels in 2007
  29. ^ DirecTV Locals
  30. ^ D&M Holdings Divests ReplayTV
  31. ^ David Lieberman (December 7, 2006). "Deal would give Liberty reins of DirecTV". USA Today.
  32. ^ "News Corp. Shareholders Accept Liberty Deal". NY Times. April 4, 2007.
  33. ^ Tim Mullaney (February 27, 2008). "Liberty Completes Swap of News Corp., DirecTV Stakes". Bloomberg.
  34. ^ John Eggerton (April 14, 2009). "FCC Approves Transfer of DirecTV's Station Licenses to Liberty Entertainment". Benton Foundation.
  35. ^ Tim Mullaney and Kelly Riddell (May 4, 2009). "DirecTV Group to Combine With Liberty Entertainment". Bloomberg News.
  36. ^ "DirecTV Completes Merger Transaction with Liberty Media". DirecTV. November 19, 2009.
  37. ^ "DirecTV Completes Malone Exchange Transaction". DirecTV. June 16, 2010.
  38. ^ "Why have the Music Channels changed?". DirecTV.com. Retrieved February 9, 2010.
  39. ^ Jim Moore (December 21, 2010). "Get ready for Root Sports, the next homer TV network". Seattlepi.
  40. ^ "Versus on DirecTV". DirecTV. March 15, 2010. Retrieved 2011-18-10. {{cite web}}: Check date values in: |accessdate= (help)
  41. ^ DirecTV and Versus Reach Carriage Agreement; Sports Net Returns to DirecTV Lineup Today Market Watch March 15, 2010
  42. ^ DirecTV Pulls G4 from Lineup - Move Comes After Failed Carriage Negotiations with Comcast, Variety, October 31, 2010
  43. ^ DirecTV drops G4 Entertainment Weekly November 1, 2010
  44. ^ DirecTV Drops Comcast's G4 The Hollywood Reporter November 1, 2010
  45. ^ DirecTV G4 statement
  46. ^ "DirecTV and TiVo to Launch New HD DirecTV DVR with TiVo Service". DirecTV. September 3, 2008. Retrieved September 4, 2008.
  47. ^ a b Spangler, Todd (December 14, 2009). "Can TiVo Reinvent Itself?". Multichannel News. Retrieved December 14, 2009.
  48. ^ Manly, Lorne (January 8, 2007). From the Mind of a TV Producer, Satellite Television in a Portable Box. New York Times
  49. ^ "Will DirecTV offer a new TiVo HD DVR?". DirecTV. Retrieved October 8, 2011.
  50. ^ Farhi, Paul. "Scene 1, Double Take 2" Washington Post, August 7, 2007.
  51. ^ Comcast Looks To Sack DirecTV's Sunday Ticket Campaign Multichannel News August 4, 2011
  52. ^ Comcast Drops Suit Against DirecTV Over NFL Sunday Ticket Ads Multichannel News August 20, 2011
  53. ^ DirecTV Sweeps J.D. Power Survey Cable360.net August 15, 2007
  54. ^ Washington Attorney General sues DirecTV for unconscionable sales practices
  55. ^ "DirecTV Takes Disputed Fees Out of Customer Accounts, Suit Charges". Consumer Affairs. September 25, 2009. Retrieved August 3, 2010.
  56. ^ DirecTV to Pay $5.3 Million Penalty for Do Not Call Violations
  57. ^ DirecTV says its cancellation fee is fair since installation is free The Boston Globe August 31, 2008
  58. ^ a b "BBB Review of DirecTV, Inc". Retrieved June 6, 2010.
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