by Marla Nixon
CONTACT INFORMATION 
2260 E Imperial Hwy
El Segundo, CA 90245 United States
DIRECTV was founded in 1990 and is currently one of the world’s largest digital television services. The company provides services to over 32 million customers in the United States and Latin America (20 million in the United States and 18 million in Latin America). These services include HD, 3D and Video-On-Demand programming. DIRECTV is known for their #1 ranking in customer service as well as their sports programming which includes the NFL Sunday Ticket (see below “Deals and Acquisitions” for more details) .
ELECTED OFFICERS 
Chairman, President & CEO: Michael White
Chief Human Resources Officer: Joseph Bosch
President, DIRECTV Latin America: Bruce Churchill
Chief Financial Officer: Patrick Doyle
General Counsel: Larry Hunter
Chief Technology Officer: Romulo Pontual
Chief Accounting Officer: Steve Adams
DIRECTV announced their 2014 3rd Quarter results on November 6th, 2014 . The results showed a revenue growth of 6%, making their total revenue $8.4 billion. This revenue growth was due to an increase in U.S. ARPU (Average Revenue Per User) and DIRECTV Latin America (DTVLA) subscriber growth. However, this increase in revenue was offset by a lower ARPU at DTVLA. The lower ARPU at DTVLA was due to unfavorable changes in exchange rates.
Their current stock price (as of December 1st, 2014) is at $87.37 per share. This price has a year-to-date increase of 26.51% and a three-year increase of 89.69% . Although financials have shown an increase it is important to note that DIRECTV has sustained subscriber loss in both the United States and Latin America units. This subscriber loss has been attributed to their credit policies and a rise in competition  .
DIRECTV has three main competitors: Comcast, Dish Network and Time Warner Cable . Comcast is their biggest competitor ranking number one in the pay-TV market with 22.5 million video subscribers (DIRECTV holds about 20 million video subscribers) . There is currently a proposed merger between Comcast and Time Warner Cable (see Tuned In  and The Eyes Have It  graphics under “Deals and Acquisitions). This merger is still under consideration by the FCC, but if approved will put Comcast even further in the lead of the pay-TV market .
DEALS AND ACQUISITIONS
On September 1st, 2014, a negotiation dispute between Raycom Media and DIRECTV caused a 7-day standoff that resulted in a blackout for some DIRECTV subscribers. 43 Raycom stations, including channels with NFL programming, went dark on DIRECTV. The dispute was resolved before the Sunday NFL game and all channels were restored .
In May of 2014 AT&T announced that it planned on acquiring DIRECTV with a $48.5 billion merger. If combined, DIRECTV and AT&T will have more than 26 million subscribers in the United States. This would put DIRECTV ahead of Comcast (22.5 million subscribers as of Fall 2014) in the market for pay-TV. However, if the Comcast and Time Warner Cable merger occurs, DIRECTV would still remain second-largest. Looking at the graphic “The Eyes Have It ,” if the DIRECTV and AT&T merger is made they will have a total of 25.8 million subscribers, unfortunately that number will remain dwarfed by Comcast if the Comcast-Time Warner Cable merger occurs bringing them up to 33.1 million subscribers (note that The Eyes Have It graphic only shows data up to 2013, data not referencing The Eyes Have It are current). However, both mergers have yet to be approved by the Federal Communications Commission (FCC) . Both mergers have been under heavy consideration by the FCC because of the massive amount of subscribers each merger affects. If either or both merger are approved the pay-TV market competition will rise dramatically. On September 25th, 2014, DIRECTV stockholders approved the merger with AT&T in a vote that represented 77% of all outstanding shares. The voting results showed that more than 99% of votes casted were in favor of the merger agreement .
On October 1st, 2014, DIRECTV renewed it’s deal with the National Football League (NFL) for the NFL Sunday Ticket. The NFL Sunday Ticket includes the showing of all out-of market games (regular season games outside of their local markets) as well as real time stats . The NFL Sunday Ticket has been given exclusive rights to DIRECTV and is being extended for 8 years. The price was confirmed at $1.5 billion per season which is a 50% price increase compared to what DIRECTV paid in previous years. DIRECTV produces revenues of about $600 million from the NFL Sunday Ticket with around 2 million subscribers. This revenue is far below what they are now paying for the rights of the NFL Sunday Ticket programming . A possible reason for DIRECTV’S agreeing to a dramatically increased price is their proposed merger with AT&T (see above paragraph). If DIRECTV did not renew it’s deal with the NFL for the Sunday Ticket, AT&T was allowed to walk away from the deal without any penalties  .
In early November, AMC Networks threatened to go dark on DIRECTV if negotiation standards are not met. With their hit show The Walking Dead halfway through its season a blackout would be dangerous for DIRECTV business. The contract is set to expire in 2015 and there have been warnings aired on the show that DIRECTV subscribers may not continue to receive programming from AMC . However, DIRECTV has stated that subscribers will be able to view every episode of the upcoming season of The Walking Dead in a public promise on their website .
DIRECTV is now offering 4K Television. 4K television, also known as Ultra HD, is the latest HD technology and is called 4K because of the image width (4,000 pixels) . DIRECTV is the first and only multi-channel video provider to offer 4K/Ultra HD TV. To receive DIRECTV 4K programming, subscribers need the DIRECTV Genie HD DVR and a DIRECTV 4K ready television. Currently the only DIRECTV 4K ready TV’s are the 2014 Samsung Ultra HD/4K television models . The DIRECTV 4K programming was released on November 14th and currently has about 20 movie titles to choose from .DIRECTV has also been creating some of their own content programming since 2013. Most recently, a new drama called “Kingdom” starring Jonathan Tucker and Nick Jonas has had a 20-episode renewal a week after its premiere. The show is about a mixed Martial Arts group living in Venice, CA. “Kingdom” has been their most-watched series on their Audience Network . The DIRECTV Audience Network is devoted to their original programming .
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15. “Comcast, TWC Blast Critics of Merger,” www.wsj.com, RT: 11/30/2014
16. “AT&T Has Approached DIRECTV About Possible Acquisition,” www.wsj.com, RT: 12/1/2014
17. Wall Street Journal Video, www.wsj.com, RT:12/1/2014
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20. “CMO Today: NFL Sticks with DIRECTV for Sunday Ticket,” www.wsj.com, RT: 11/30/2014
21. “AMC Holds The Walking Dead Ransom In Dispute With DIRECTV,” www.digitaltrends.com, RT: 12/1/2014
22. DIRECTV Promise, www.directvpromise.com, RT:12/1/2014
23. DIRECTV and Guest-tek Strategic Relationship, www.guestek.com, RT: 12/1/2014
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25. “What is a DIRECTV 4K Ready TV and how does it work?” www.support.directv.com, RT: 12/1/2014
26. DIRECTV 4K TV Press Release, www.investor.directv.com, RT: 12/1/2014
27. Kingdom Photo, www.seriable.com, RT: 12/1/2014
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29. DIRECTV Audience Network, www.directv.com, RT: 12/1/2014
30. Kingdom Trailer, www.youtube.com, RT: 12/1/2014