Coordinates | 23°33′″N46°38′″N |
---|---|
company name | DirecTV |
company logo | |
company type | Public company |
traded as | NASDAQ-100 ComponentS&P; 500 Component |
foundation | December 20, 1985as Hughes Electronics Corporation |
location | El Segundo, California, US |
key people | Michael White(Chairman, President and CEO) |
industry | Telecommunication |
products | Direct broadcast satellite |
revenue | US$ 24.102 billion (2010)}} |
DirecTV has its own exclusive channel called Audience Network. DirecTV also owns regional sports networks Root Sports Pittsburgh, Root Sports Northwest, and Root Sports Rocky Mountain/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. DirecTV also has 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", for Men's Majors Golf Tournaments and Grand Slam Tennis Tournaments.
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.
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.
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. 2006 revenues were US$14.76 billion.
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.
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 Network Systems 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 to launch the first high power digital television service called SkyPix, 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.
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. 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.
In September 1996, Hughes purchased 70% of PanAmSat for $3 billion. In 1997, GM spun off Delco Electronics from Hughes and transferred it to Delphi Automotive Systems. That same year, Hughes Aircraft was sold to Raytheon for $9.5 billion. Raytheon filed a lawsuit in 1999 accusing Hughes of overstating the value of Hughes Aircraft by $1 billion. A $635.5 million settlement was reached in 2001. In 2000, Hughes Space and Communications was sold to Boeing for $3.75 billion, which it later claimed had also been overvalued by Hughes. Hughes later settled with Boeing for $360 million. 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. 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. 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. 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. As part of the merger agreement, EchoStar was required to pay Hughes $600 million due to the failure of the merger.
Also in 2002, DirecTV made a dispute with Paxson Communications (now ION Media Networks) that it would drop PAX (now Ion Television) from its lineup. DirecTV customers were to call DirecTV and tell them "I Want My PAX TV" (parody of "I Want My MTV").
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. 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. 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.
{| align="right" class="wikitable" |- ! Year ! align="right"|Subscribers |- | align="center"|1994 | align="right"|320,000 |- | align="center"|1995 | align="right"|1,200,000 |- | align="center"|1996 | align="right"|2,300,000 |- | align="center"|1997 | align="right"|3,301,000 |- | align="center"|1998 | align="right"|4,458,000 |- | align="center"|1999 | align="right"|6,679,000 |- | align="center"|2000 | align="right"|9,554,000 |- | align="center"|2001 | align="right"|10,218,000 |- | align="center"|2002 | align="right"|11,181,000 |- | align="center"|2003 | align="right"|12,290,000 |- | align="center"|2004 | align="right"|13,000,000 |- | align="center"|2005 | align="right"|15,000,000 |- | align="center"|2006 | align="right"|15,950,000 |- | align="center"|2007 | align="right"|16,830,000 |- | align="center"|2008 | align="right"|17,620,000 |- | align="center"|2009 | align="right"|18,081,000 |- | align="center"|2010 | align="right"|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". 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. 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. In January 2006, DirecTV sold its remaining 50% share in Hughes Network Solutions to SkyTerra for $100 million. 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. 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. 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. On October 15, 2007, DirecTV announced that they had 70 national high-definition channels available, with up to 100 coming by year end. On October 3, 2008, DirecTV announced that it would offer HD local channels in 121 markets by year-end.
On December 13, 2007, DirecTV purchases most of the assets of ReplayTV from D&M; Holdings. 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. The deal, valued at $11 billion, was approved by News Corp. shareholders in April 2007. 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. 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.
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%. The merger was completed on November 19, 2009, with The DirecTV Group and Liberty Entertainment becoming subsidiaries of a new company named DirecTV. 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.
On Feb 9, 2010, DirecTV dropped Sirius XM Radio and replaced the channel lineup with Sonic Tap audio stations. 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.
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 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. Originally scheduled to launch in the second half of 2009, it was expected to be available in spring 2010. it has not yet appeared.
DirecTV typically uses a fixed 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 and . 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 has introduced a new line of remotes to go with their new receivers.
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 2010, no official amended launch date has been set. Both DirecTV and TiVo claim development is ongoing and the project has not been canceled.
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).
DirecTV currently uses 12 satellites. Its 13th is currently being built.
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. 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. 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".
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.
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.
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.
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.
, the Better Business Bureau gives DirecTV an F rating.
, 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".
Category:High-definition television Category:Direct broadcast satellite services Category:Satellite television Category:Lists of television channels by company Category:Companies based in Los Angeles County, California Category:Companies established in 1994
de:DirecTV es:DirecTV fr:DirecTV ko:DirecTV id:DirecTV it:DirecTV ml:ഡയറക് ടിവി ms:DirecTV nl:DIRECTV ja:ディレクTV pl:DirecTV pt:DirecTV ru:DirecTV fi:DirecTV tr:DirecTV zh:DirecTVThis text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
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