DirecTV - A Brief History

April 23rd, 2007

Digital compression made it possible for the first time for several digital television channels to be squeezed onto a single satellite transponder. Previous to this, only one channel could be carried per each transponder, which meant a maximum channel barrier of 24-32 channels per satellite. Clearly this was not a feasible option for a service that was to compete head on with long established cable vision companies.


Cost

Programming
Quality
One of the most important aspects of enjoyable television is quality. Quality, concerning today’s television programming, means digital programming. DirecTV offers 100% digital programming that will ensure that the consumer will have the utmost quality while watching any of the programs. This means that the sound will have CD quality and the picture will be crisp and vibrant. However, in comparison, basic (and even expanded) cable services are in analog. This limits the sound and picture quality and could even limit the enjoyment derived from viewing. Even the digital cable services are greatly limited to bandwidth limitations. If quality is important to the consumer DirecTV provides quality television through 100% digital programming.
The DirecTV/USSB partnership came in 1991, as Directv’s parent company, Hughes Electronics was attempting to raise financing for the DirecTV venture. USSB, which had previously been part of a failed DBS project in the 1980’s, saw an opportunity to finally capitalize on their dream of launching a successful DBS service to the American marketplace. USSB agreed to purchase 5 transponders aboard the future DBS-1 satellite, which they would use to broadcast their premium movie and pay per view offerings.

Programming capacity is important because it gives the consumer choice. If there are many channels available, the consumer is able to choice the channel that is most interesting, entertaining, or informative. The simple answer is that satellite television, and DirecTV in particular, is able to provide a much larger selection of programming. Compared to cable, DirecTV offers hundreds of different channels. Satellites provide a greater bandwidth, which translates in to more channels to enjoy.

The new DirecTV system quickly became one of the hottest selling consumer electronics products of the year in 1994. At the time, the complete 8 bit RCA DSS system was selling for $699, not including installation. RCA also released an advanced DSS system, offering more features, universal remote control and re-in forced satellite dish for $899. The fall of 1994, brought another significant milestone as the second DirecTV satellite, DBS-2 launched and began operations in September of 1994. This offered DirecTV a further 16 high powered transponders, which allowed them to expand their programming offerings to nearly 150 channels. In comparison to cable vision systems of the day, which offered an average of 30 analog channels, this brought serious heat to the broadcasting industry.


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