A Tour Through The History Of DirecTV
Direct broadcast satellite (DBS) service transmits television signals directly to subscribers’ homes via satellite. The signals are received and decoded by the instantly recognizable dishes that populate the roofs of houses across the country. Rather than being limited to a few local channels through traditional broadcasting, subscribers can enjoy hundreds of programs.
One of the largest companies that offer DBS service is DirecTV. In this article, we’ll explore its history beginning with the years preceding its launch through their current status as a leviathan in their market.
Before The Launch
Years before DirecTV debuted, two companies raced to be the first to provide DBS service to consumers. United States Satellite Broadcasting (USSB) was a frontrunner after having been awarded five frequencies by the FCC. Meanwhile, Hughes Communications was awarded 27 frequencies in the same location. Years passed as both companies honed their respective technologies and amassed the financial resources needed to build and launch the necessary satellites.
Hughes Communications, in an attempt to gain early control of the digital television market, tried to launch Sky Cable. Unfortunately, the joint venture that provided the backing disintegrated and Sky Cable failed. However, Hughes quickly refound its footing and launched DirecTV. The company hired Thomson Consumer Electronics to design an 18-inch dish that could receive and decode hundreds of channels. The dish was to be based on technology used almost exclusively by the military.
Once the entire system had been designed, Hughes and USSB jointly launched the first of several satellites that would power the DBS service. In 1994, DirecTV was officially born.
Through The Years
The company moved quickly to dominate their market. By July 1995, three satellites had been launched and much of the infrastructure had been placed on the shoulders of other companies. By 1998, with over 4 million subscribers and a half dozen satellites launched, Direct TV bought its partner USSB for a staggering $1.3 billion. The following year, they purchased their competitor PrimeStar for $1.83 billion.
The company continued to expand at a rapid pace, both in terms of the number of subscribers they served as well as their infrastructure. In 2003, a partnership with EchoStar (owner of the Dish Network) crumbled. The collapsed merger would position both companies to become the other’s largest competitor.
Current Position And Future Prospects
Today, DirecTV has over 19 million subscribers in the U.S., the Caribbean, and in certain areas in Latin America. They have remained on the forefront of DBS-related technology, responding to subscribers’ needs quickly. For example, in 2008, the company announced they would offer high-definition channels in over 120 markets by the end of the year. As more people become dissatisfied with the programming on their local broadcast stations, they’ll look for a more flexible alternative. By most measures, DirecTV’s future is likely to be bright.
