Directv Case Analysis

This paper is a full case analysis about DirecTV.

1 Executive Summary

This report will provide a case of News Corporation (News Corp.) and specifically DirecTV. This report examines three strategic issues facing News Corp and DirecTV: who will replace Rupert Murdoch as News Corp. CEO; how can DirecTV gain market share; and how can DirecTV improve profitability in a market that has not yet reached maturity, but is clearly saturated. A SWOT analysis and industry information will also be reviewed.

Background

DirecTV is the first entertainment service in the United States to provide all digital quality, multi-channel television programming via an 18-inch satellite DISH and also reach people across America and other targeted market locations with an alternative to cable television. DirecTV provides those who live in rural communities with access to programming equivalent to what their urban and suburban neighbors are receiving.

DirecTV is made up of four main units that include DirecTV U.S., DirecTV Latin America, PanAmSat, and Hughes Network Systems. This organization serves over 12 million U.S. Satellite TV customers and another 1.5 million subscribers in Latin countries. Through PanAmSat, they operate a fleet of 25 satellites capable of providing satellite transmissions to 98% of the world. And Hughes Network Systems (HNS) operates a satellite-based consumer broadband Internet access service known as DirecWay. This component of Hughes has over 180,000 subscribers. HNS is also one of the largest manufacturers of DirecTV set-top receivers. The four different aspects of The DirecTV Group give the company a large, comprehensive base of direct and indirect satellite customers. Their partnerships with technology leaders such as AOL, Microsoft, and TiVo also add to their customer base.

1 Executive Summary