We sell DIRECTV through a number of distribution channels, including direct
sales, online, telcos, national sales providers, local sales providers and consumer
electronics retailers. We believe this variety of distribution alternatives
coupled with sophisticated marketing programs has enabled us to continue to
grow our subscriber base in an increasingly competitive and mature business.
We have attained top rankings in customer satisfaction studies for our industry.
For example, we have scored higher than the largest national cable providers
in customer satisfaction for thirteen consecutive years in the American Customer
Satisfaction Index. We believe that providing high-quality customer service
is an important element in minimizing subscriber disconnection, or churn, and
attracting new subscribers.
To subscribe to the DIRECTV or SKY service, customers sign up for our video
service directly through us or our regional retailers, or independent satellite
television retailers or dealers. We tailor our offers and products to profitably
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 and
services to customers who meet our standard requirements. For these customers,
dealers or one of our home service providers install the receiving equipment.
The receiving equipment consists of a small receiving satellite dish antenna,
one or more digital set-top receivers, which are typically leased to the subscriber,
and remote controls. In addition, we offer pre-paid service for customers that
desire payment and commitment flexibility. These customers may purchase a standard-definition
receiver and antenna and pre-pay their DIRECTV service through one or more means,
such as the purchase of a rechargeable card that they can acquire at a retailer
or local kiosk. The video service will automatically disconnect once the credit
on the card runs out.
We sell DIRECTV and SKY through a number of distribution channels, including
direct sales, online, regional sales providers and local sales providers. We
believe this variety of distribution alternatives coupled with segmented marketing
programs, have enabled us to continue to grow our subscriber base by extending
our leadership with advanced products as well as by continuing to penetrate
the middle market segment with tailored package offerings.
