DIRECTV U.S.

Business Description

DIRECTV is the world’s leading provider of digital satellite television entertainment. As of year-end 2000, DIRECTV served more than 9.5 million customers, making it the third-largest multi-channel entertainment provider in the United States. With its industry-leading monthly average revenue per user (ARPU) of $59 at year-end 2000, DIRECTV generated more than $4.7 billion in revenues in 2000—a 38-percent increase over 1999—and $151 million in EBITDA.

Key Strategies
• Continue to acquire new customers at a rapid pace
• Increase ARPU through roll-out of new interactive and broadband services
• Provide bundled video/broadband services with Telocity™ and DIRECWAY™
• Provide world-class customer service; maximize customer loyalty; reduce customer churn

Major Accomplishments

• Acquired a record 1.8 million new high-power customers while bringing the total number of DIRECTV customers to more than 9.5 million
• Completed the conversion of 1.5 million PRIMESTAR By DIRECTV customers to the high-power DIRECTV® service and closed the PRIMESTAR business six months ahead of schedule
• Introduced its first two interactive/enhanced TV services
• Launched DIRECTV INTERACTIVE™ Powered by Wink® service, reaching approximately two million DIRECTV customers by year-end
• Introduced DIRECTV™ Receiver with TiVo® service
• Completed distribution/marketing alliance with Blockbuster, Inc.
• Increased availability of local programming to 41 markets, representing more than 60 percent of U.S. television households
• Completed acquisition of Telocity, Inc.—a company that offers broadband data services via digital subscriber lines (DSL)—in April 2001
• Generated average monthly revenue per customer of $59 at year-end 2000—the highest of all multi-channel video providers