Tuesday, May 15, 2012

A Short History of DIRECTV

DIRECTV is an American based company that was launched on June 17th 1994. The company offers satellite television service to the United States, Latin America and Caribbean. DIRECTV has led the way throughout the years achieving the status as America's #1 Satellite Provider. Let's take a look back at how DIRECTV came to be the company it is today.

Founding Years

Well known for his aviation endeavors, Howard Hughes was known as a business magnate that helped revolutionize many industries including satellite television with Hughes Electronics. Early on, Hughes attempted to launch a joint venture with NBC, News Corp, and Cablevision back in 1990. The joint venture for the first high power digital television service failed, after talks broke down. A separate division was created by Hughes and DIRECTV was born. Hughes and satellite broadcasting father, Stanley Hubbard of United States Satellite Broadcasting (USSB) joined forces to offer their two services with 175 channels from one orbital location. The FCC granted frequencies to Hughes and USSB from the 101 degree west satellite location.

On June 17th, 1994 DIRECTV and USSB services was launched for consumers. Thomson Consumer Electronics developed the direct broadcast satellite system under its subsidiary name RCA, while Digital Equipment Corporation manufactured the hardware. The small and lighter satellite antenna revolutionized the industry with a simple installation from anywhere as long as there was a view of the southern sky.

Early Years

In 1998, USSB was acquired by DIRECTV in 1998 for $1.3 billion combining the two services. A year later a direct competitor PrimeStar was purchased increasing DIRECTV's overall market share. In 2000, General Motors held controlling interest in DIRECTV. It allowed Hughes to seek buyers for the company. After failed attempts early on from News Corporation and Echostar, General Motors share was eventually sold to News Corporation.

Beyond 2000

After rapid growth through acquisitions and superior service, Hughes Electronics decided to rename itself, "The DIRECTV Group, Inc. Hughes Electronics sold it's interest in PanAmSat and Hughes Network Systems to focus strictly on its satellite television services.

In 2004, DIRECTV abandoned its efforts in the Mexican market, while still controlling interest in Sky Mexico. The following year, DIRECTV dumped its relationship with audio provider Music Choice in favor of XM Satellite Radio.

In 2006, News Corporation announced its plans to transfer controlling interest in DIRECTV to Liberty Media for its own controlling interest in News Corporation. The deal was approved the following year and blessed by the FCC given Liberty divested its interest in DIRECTV's operations or its Liberty Global Puerto Ric cable operation.

In 2007, DIRECTV abandoned the Brazilian market, while still controlling maintaining controlling interest.

In 2007, DIRECTV announced it would carry up to 100 HD Channels by the year's end. The following year they announced local HD channels to the 121 markets.

In 2010, DIRECTV dropped SIRIUS XM Radio and it was replaced by Sonic Tap Audio stations.

Today

DIRECTV provides video and audio services throughout the America's to over 20 million customers. Displaying hundreds of channels to choose from with over 170+ in High Definition. DIRECTV serves consumers in the public industry like bars and restaurants, as well as, private offices, hospitals, and hotels.

What will the future hold for DIRECTV? It may hold over 22 million customers, we'll just have to wait and see!

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