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. DirecTV has its own exclusive channel called Audience Network. DirecTV also 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. DirecTV also has an excl! usive 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. Contents 1 General information 2 History 3 Receivers 4 Access card history 5 High-definition television (HDTV) 6 Local channels 7 Satellite fleet 8 Marketing and commercials 9 Customer service 9.1 Washington State's Attorney General civil complaint 9.2 California class action lawsuit 9.3 Telemarketing violations 9.4 Better Business Bureau Review 10 See also 11 References 12 External links [edit] 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 ch! annels, so its competitors are cable television service and ot! her sate llite-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 provide! rs 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, d! orms, and hospitals through their DirecTV for business service! . The co mpany also offered mobile service for cars, boats, and RVs (DirecTV Mobile) as well as aircraft (DirecTV Airborne) in cooperation with Connexion by Boeing. [edit] 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 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 t! urned 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. 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.[8] 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.[9] In September 1996, Hughes purchased 70% of PanAmSat for $3 billion.[10] In 1997, GM spun off Delco Electronics from Hughes and transferred it to Delphi Automotive Systems.[11] That same year, Hughes Aircraft was sold to Raytheon for $9.5 billion.[12] Raytheon filed a lawsuit in 1999 accusing Hughes of overstating the value of Hughes Aircraft by $1 billion.[13] A $635.5 million settlement was reached in 2001.[14] In 2000, Hughes Space and Communications was sold to Boeing for $3.75 billion,[15] which it later claimed had also been overvalued by Hughes. Hughes later settled with Boeing for $360 million.[16] These sales left DirecTV,! PanAmSat and Hughes Network Systems as the remaining componen! ts of Hu ghes 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.[17] 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.[18] 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.[19] 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.[20] As part of the merger agreement, EchoStar was required to pay Hughes $600 million due to the failure of the ! merger.[20] 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.[21] 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.[21] The SEC voted 3–2 along party lines on Dec
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