DirecTV

Hughes Electronics logo (1985–1990)

In 1953, Howard Hughes created the Howard Hughes Medical Institute (HHMI), to which he transferred full ownership of Hughes Aircraft. Ostensibly created as a non-profit medical research foundation, HHMI was accused of being used by Hughes as a tax shelter.[8] Following Hughes' death in 1976, HHMI was incorporated in 1977, and litigation ensued to determine whether it would be allowed to maintain its interest in Hughes Aircraft.[9] In 1984, the court appointed a new board for HHMI, which proceeded to sell off Hughes Aircraft to General Motors on December 20, 1985, for an estimated $5.1 billion.[10] General Motors then merged Hughes Aircraft with its subsidiary Delco Electronics to create Hughes Electronics Corporation.[11] The new subsidiary was initially composed of four units: Delco Electronics Company, Hughes Aircraft Company, Hughes Space and Communications Company, and Hughes Network Systems.

Stanley E. Hubbard founded United States Satellite Broadcasting (USSB) in 1981[12] and was a leading proponent for the development of direct-broadcast satellite service in the United States.[13] USSB was awarded five frequencies by the FCC, at the coveted 101-degree west satellite location.[14] Hughes Communications, Inc. was also awarded 27 frequencies at the same 101-degree location.[15] After many years, the technology was developed to enable the building of very high-power satellites, and digital compression (MPEG-2) standards were developed that allowed multiple digital television channels to be sent through each satellite frequency.

Hughes and other companies believed in the early 1990s that technology would soon make digital satellite television affordable.[16] Hughes attempted to create a joint venture with NBC, News Corp., and Cablevision in 1990, to launch the first high-power digital television service called Sky Cable.[17] Failing to do so, the company instead created DirecTV as a separate division and secured an agreement with USSB to build and launch the first high-power direct-broadcast satellite system. DirecTV's name is a portmanteau of "direct" and "TV" (as in direct broadcast satellite television). Hughes/DirecTV then turned to Thomson Consumer Electronics (under the RCA, GE, and ProScan brands) to develop the digital satellite system for the service that would be capable of receiving 175 channels on a small 18-inch dish.[18] These dishes utilized a new generation of smaller, lighter receiver dishes based on military technology introduced by the Global Broadcast System, which predated DirecTV's viability by almost ten years. Hughes was awarded the contract to build and launch the new high-powered satellites, and USSB and DirecTV agreed that the new satellites would carry the two separate programming services: USSB and DirecTV.

The USSB and DirecTV programming services were launched on June 17, 1994. Digital Equipment Corporation provided the hardware for DirecTV, Matrixx Marketing (part of Cincinnati Bell) provided customer care via the Matrixx Plus department, and DBS Systems created the billing software. In December 1998, DirecTV acquired USSB for $1.3 billion, and combined the two satellite services.[19] In 1999, DirecTV acquired PrimeStar, a competitor in the satellite television industry, for $1.83 billion, dramatically increasing its share of the satellite television market in the US.[20]

DirecTV logo used from 1993 to 2004

In September 1996, Hughes purchased 70% of PanAmSat for $3 billion.[21] In 1997, GM spun off Delco Electronics from Hughes and transferred it to Delphi Automotive Systems.[22] That same year, Hughes Aircraft was sold to Raytheon for $9.5 billion.[23] Raytheon filed a lawsuit in 1999 accusing Hughes of overstating the value of Hughes Aircraft by $1 billion.[24] A $635.5-million settlement was reached in 2001.[25] In 2000, Hughes Space and Communications was sold to Boeing for $3.75 billion,[26] which it later claimed had also been overvalued by Hughes. Hughes later settled with Boeing for $360 million.[27].

• • May 2004: started DirecTV_7S (Sieben_Sex), Kiribaty atom, 2023: i=2.6, move orbit (all Earth), US_StratCom=28238.

These sales left DirecTV, PanAmSat and Hughes Network Systems as the remaining components of Hughes Electronics. On November 11, 1997, DirecTV is signing a two-year deal with Action Adventure Network, a consortium founded by Telescene, Richmel Productions and Goodman/Rosen Productions to offer original series and telefilms for pay-per-view viewing, for $2.99 with the intent to expand.[28]

Direct satellite broadcasters were mandated in 1992 to set aside 4% of its channel space for noncommercial educational and informational programming. DirecTV selected C-SPAN, EWTN and the Trinity Broadcasting Network from its current channel lineup plus request additional proposals from other programmers. DirecTV had given PBS Kids, PBS's original application, carriage that did not count against the set aside six weeks before the deadline. DirecTV selected an additional six channels; Clara+Vision, Inspirational Life, NASA TV, PBS YOU, StarNet and WorldLink TV, for the mandate.[29]

In 2000, DirecTV introduced the first live in-flight television service for airlines; the system was first used by JetBlue and defunct startup carrier Legend Airlines.[30]

In September 2000, GM executives, under pressure from GM's shareholders as a result of its poor performance and the substantially greater market worth of Hughes, authorized Hughes executives to begin seeking buyers.[31] In 2001, News Corporation began negotiations to acquire Hughes Electronics in a deal worth $8 billion, which would allow News Corp. to expand its Sky Global Networks satellite television operations into the United States.[32] Negotiations with News Corp. ultimately failed, and Hughes entered into an agreement on October 28, 2001, to be purchased for $26 billion by EchoStar, owner of Dish Network.[33] However, the deal attracted significant opposition from the Department of Justice and the Federal Communications Commission for antitrust concerns, leading the two companies to withdraw the agreement in December 2002.[34] As part of the merger agreement, EchoStar was required to pay Hughes $600 million for the failure of the merger.[34]

On April 9, 2003, News Corporation, the then-parent company of 20th Century Fox (now known as 20th Century Studios) and Fox Television Studios, agreed to purchase a 34% controlling interest in Hughes, including GM's entire share of the company, for $6.6 billion, subject to SEC approval.[35] As part of the financing for the deal, Liberty Media, the then-parent company of Starz, agreed to take a $500-million option of stock in News Corporation that would be exercised upon the closing of the deal. Liberty, the second-largest shareholder in News Corp. after the Murdoch family with 18%, had originally planned to bid for DirecTV, but opted not to upon the agreement.[35] The FCC voted 3–2 along party lines on December 19, 2003, to approve the deal subject to conditions, forcing News Corp. to agree to arbitration for all disputes with carriers of its media broadcasters, and to provide content through DirecTV neutrally rather than favoring its own networks.[36]

DirecTV logo 2004 to 2011. The "D" symbol was used in some capacity from 1994 to 2016.

In February 2004, Hughes announced its intent to focus solely on its satellite television operations and divest its other interests, renaming itself The DirecTV Group, Inc. on March 16, 2004, and changing its ticker symbol from "HS" to "DTV".[37] In April of that year, it sold its controlling interest in PanAmSat to a private consortium led by Kohlberg Kravis Roberts for $3.53 billion.[38] On April 22, 2005, DirecTV spun off Hughes Network Systems into a separate entity and sold 50% of the new entity to SkyTerra, acquiring $157.4 million in the transaction.[39] In January 2006, DirecTV sold its remaining 50% share in Hughes Network Systems to SkyTerra for $100 million.[40] The sale effectively ended DirecTV's 20-year existence through Hughes Electronics as a technology conglomerate, leaving it solely with its satellite television services.

In 2004, DirecTV abandoned the Mexican market, though it maintained 41% ownership of SKY México.[41] On November 15, 2005, DirecTV stopped carrying Music Choice audio-only channels, replacing it with 73 channels of XM Satellite Radio. In 2007, DirecTV abandoned the Brazilian market, with the customers being migrated to the 74% DirecTV-owned Brazilian affiliate of SKY Brasil.[41] In 2010, DirecTV increased its stake in Sky Brasil to 93%.

On November 1, 2005, DirecTV made its foray with its first original series, CD US, on Freeview.[42]

On January 9, 2007, DirecTV announced it would introduce up to 100 national HD channels during 2007, all of which would be MPEG-4 encoded.[43] On October 3, 2008, DirecTV announced that it would offer HD local channels in 121 markets by the end of the year.[44]

Headquarters in California in 2013

In December 2006, News Corporation announced its intention to transfer its 38.5% controlling interest in The DirecTV Group, four regional Fox Sports Net stations and $550 million cash to Liberty Media in exchange for Liberty's 19% interest in News Corp., giving the Murdoch family tighter control of the latter firm.[45] The deal, valued at $11 billion, was approved by News Corp. shareholders in April 2007.[46] Following revisions that increased the cash offer to $625 million in exchange for a reduction of Liberty's divested interest in News Corp. to 16%, the swap was completed on February 27, 2008, following Federal Communications Commission (FCC) approval.[47] One condition placed by the FCC on the deal was that Liberty divest either its DirecTV operations or Liberty Global's cable operations in Puerto Rico, which Liberty fulfilled by placing DirecTV's Puerto Rican operations in a trust.[48]

On May 4, 2009, Liberty announced that it would split off Liberty Entertainment, Inc., a subsidiary of Liberty owning the four Bally Sports channels acquired under the swap with News Corp. and Liberty's 65% interest in Game Show Network, into a separate company to be merged with The DirecTV Group, reducing Liberty owner John Malone's stake in DirecTV to 24%.[49] The merger was completed on November 19, 2009, with The DirecTV Group and Liberty Entertainment becoming subsidiaries of a new company named DirecTV.[50] On June 16, 2010, Malone exchanged his preferred stock in DirecTV with equivalent amounts of common stock, reducing his voting interest in the company from 24% to 3%, with Malone resigning as chairman and ending his managerial role at DirecTV.[51]

On February 9, 2010, DirecTV dropped Sirius XM Radio and replaced the channel lineup with Sonic Tap audio stations.[52] On April 1, 2011, DirecTV announced it would be renaming its three Bally Sports channels as Root Sports, though the channels are still affiliated with Bally Sports.[53]

• On December 13, 2007, DirecTV purchased most of the assets of ReplayTV from D&M Holdings.[54]
• In June 2013, DirecTV purchased Pennsylvania-based LifeShield, a maker of wireless home security systems, with plans to market the systems to its customers.[55]

DirecTV transitional logo following purchase by AT&T from July 24, until December 31, 2015

Logo used from January 1, 2016 to August 1, 2021

Logo used in Latin America and the Caribbean since 2016

On May 18, 2014, AT&T announced that it would purchase DirecTV.[56][57] In the deal, which had been approved by boards of both companies, DirecTV stockholders received $95 a share in cash and stock, valuing the deal at $48.5 billion. Including assumed debt, the total purchase price was about $67.1 billion. The deal was aimed at increasing AT&T's market share in the pay-TV sector; its existing U-verse brand had modest market share (5.7 million users compared to DirecTV's 20 million US customers as of 2014) and operates in only 22 states. It also gave AT&T access to fast-growing Latin American markets, where DirecTV has 18 million subscribers.

The deal faced regulatory approval by the FCC, the U.S. Department of Justice, and some Latin American governments. It was expected to take about 12 months to complete.[58] The deal was also contingent on the combined company's ability to renew its exclusive rights to carry the NFL Sunday Ticket service beyond the 2015 NFL season on "substantially the terms discussed between the parties."[59]

The acquisition was officially approved by the FCC on July 24, 2015; it is subject to conditions for four years, requiring AT&T to expand its fiber-optic broadband service to additional customers, public libraries, and schools, and to "refrain from imposing discriminatory usage-based allowances or other discriminatory retail terms and conditions on its broadband internet service".[60][61]

At an analyst meeting in August 2015, AT&T announced plans to converge DirecTV and its IPTV-based U-verse service around a common "home entertainment gateway" platform based upon DirecTV hardware, with "very thin hardware profiles". AT&T Entertainment and Internet Services CEO John Stankey explained that the new platform would offer "single truck roll installation for multiple products, live local streaming, improved content portability, over-the-top integration for mobile broadband, and user interface re-engineering. All of these are steps that are planned to deliver that premium effortless entertainment experience anywhere."[62][63][64]

In September 2015, AT&T selected Ericsson to be hardware provider for the new platform, and hired former Sirius XM, Cisco Systems and Microsoft executive VP Enrique Rodriguez to be vice president and CTO of the AT&T Entertainment and Internet Services division.[65][66]

On December 2, 2015, AT&T announced plans to phase out the DirecTV brand as part of the introduction of the new platform, which will be marketed as AT&T Entertainment. The company also adopted a new logo, replacing its previous emblem with that of AT&T.[67][68][69]

In February 2016, Bloomberg reported that AT&T was in the process of phasing out the U-verse IPTV service by encouraging new customers to purchase DirecTV satellite service instead, and by ending the production of new set-top boxes for the service. An AT&T spokesperson denied that U-verse was being shut down, and explained that the company was "leading its video marketing approach with DirecTV" to "realize the many benefits" of the purchase, but would still recommend U-verse TV if it better-suited a customer's needs. AT&T CFO John Stephens had also previously stated that DirecTV's larger subscriber base as a national service gave the service a higher degree of leverage in negotiating carriage deals, thus resulting in lower content costs.[70][71][72]

On March 1, 2016, AT&T announced plans for several DirecTV-branded over-the-top services, including AT&T TV, DIRECTV Mobile, and DIRECTV Preview to be offered under one platform called DIRECTV Stream.[73][74][75] DIRECTV Stream launched on November 30, 2016 and was directly competing against Sling TV.[76][77]

On October 20, 2016, it was reported that AT&T was in talks to acquire Time Warner, in an effort to increase its media holdings.[78][79][80] On October 22, 2016, AT&T reached a deal to buy Time Warner for over $80 billion. The merger was approved by federal regulators, bringing DirecTV under the same umbrella as HBO, Cinemax, Turner Broadcasting System, Warner Bros., and Telepictures.[81][82]

On July 13, 2017, it was reported that AT&T would introduce a cloud-based DVR streaming service as part of its effort to create a unified platform across DIRECTV and its DIRECTV Stream service.[83][84][85]

On July 30, 2019, DirecTV Now customers received notices saying the name of that service had been changed to AT&T TV Now,[86] and AT&T CEO Randall Stephenson said DirecTV will continue to operate even after the launch of AT&T TV.[87][88]

On February 25, 2021, AT&T announced that it would spin-off DirecTV, U-Verse TV, and DirecTV Stream into a separate entity, selling a 30% stake to TPG Inc., while retaining a 70% stake in the new standalone company. The deal closed on August 2, 2021.[89][90]

DIRECTV Stream, which offers Live TV and On Demand content, launched in August 2021.[91]

DIRECTV completed its national rollout of local PBS member stations in February 2022. Nearly 250 local PBS stations in 198 Nielsen DMAs were added that reach 99% of all U.S. TV homes.[92]

In April 2023, DirectTV launched a brand campaign, “Overly Direct Spokesperson,” that stars Brian Cox; this is part of its new brand strategy platform, “Entertainment Without Compromise”.[93] The following month, it was announced that DIRECTV would retain exclusive rights to NFL Sunday Ticket for commercial use only, beginning with the 2023 football season.[94]

DIRECTV’s initial service offering was characterized by the delivery of all-digital standard definition national channels to locations in the lower 48 states. This allowed households without available cable television service to receive national channels. In these early years, receivers were manufactured with brands including RCA and GE (Thomson of France) and Sony Electronics.[101] When DIRECTV launched a few High Definition channels in the late 1990s, other CE manufacturers joined in with HD capable receivers under their own brands which helped promote sales of their early generation HD television products. These additional company brands included Samsung Electronics, Philips, Panasonic, Mitsubishi Electronics, and Toshiba.[101] Features that were innovative at the time included: a fully interactive program guide, parental controls (i.e. allowed parents to passcode protect channels having R-rated content), and pay-per-view (allowing rentals via remote control instead of having to call DIRECTV for authorization). The initial generation of antennas was 18-inch diameter (46 cm) with a single feed (consisting of a feedhorn and LNB electronics) that could downlink digital television signals from DIRECTV’s satellites at the 101 degrees West geostationary orbital position.[102]

DIRECTV receiver modifications accommodated local channels, including multi-orbital slot reception and an improved electronic program guide featuring TV listings up to two weeks. The first locals-era DIRECTV outdoor antenna was a follow-up generation with a 18x24-inch diameter (46x61 cm) elliptical reflector and three feeds that additionally allowed “multi-sat” reception from DIRECTV satellites at the 119W and 110W positions.

DIRECTV launched new network components dedicated to HD channels. The new network components allowed DIRECTV to address challenges with customers experiencing different user interfaces depending on the brand of DIRECTV receiver they used, by specifying a “common user experience.” DIRECTV’s designs were built with companies including Pace Micro Technology of Britain, LG of South Korea (which had manufactured boxes under the LG and Zenith Electronics names), Thomson, GE (under license), and ProScan.[101]

DIRECTV’s initial satellites used Ku band frequencies. With the launch of new satellites utilizing Ku band frequencies, DIRECTV increased its available signal bandwidth more than six-fold to meet the requirements of the higher resolution HD television pictures. DIRECTV also maintained its original fleet of satellites in operation at 101W, 110W and 119W longitudes and simulcasted the SD and HD versions of channels once made available. These new DIRECTV HD channels required an H20/HR20 or later model set top box (STB) capable of supporting the MPEG-4 standard for HD programming. These models also introduced HDMI support for HDTVs with an HDMI port. A new “Slimline” outdoor antenna design was introduced, capable of receiving both the Ka Band satellites located at 99W and 103W longitude as well for a total of 5 LNBs. Over time, DIRECTV has consolidated HD programming onto solely the 99W, 101W and 103W slots allowing for the use of a Slimline antenna having 3 LNBs instead of 5.

Video On-Demand (VOD) features were enabled, allowing a viewer to “start over” a program, “look back” at a program that had recently aired, watch prior episodes that weren't presently aired, and see advertising according to that viewer’s characteristics. “Whole-home” viewing allowed viewers to access and view their DVR recordings from any room in the house, not just the room where the DVR receiver was located.

In 2012, DIRECTV launched its “Genie” family of receiver models, consisting of a “Genie” home server and “mini Genie” devices. Having 5 satellite tuners, the Genie offered live viewing of up to four channels while simultaneously recording a program on a fifth channel. Up to eight mini-Genies could be installed in a home, however simultaneous live viewing was possible on any four of the devices (including the Genie itself).[103][104]

In addition, DIRECTV integrated WiFi wireless home networking to connect set-top boxes to broadband services. DIRECTV incorporated RVU remote user interface technology, allowing a single DIRECTV receiver to transmit both video/audio and user screen direction to compatible television sets.[105] DIRECTV also developed capabilities to “download and go” DVR recordings (“GenieGo”) and to stream recordings to devices while out of home.

DIRECTV introduced limited 4K UltraHD and High Dynamic Range broadcasts. The first nationwide 4K UltraHD broadcasts were made available by DIRECTV, and DIRECTV offered large sporting events in the format as well as PPV movie rentals and 4K channels. The 4K capable DIRECTV miniGenie client (model C61K-700) also became available.[105]

A “Genie 2” device, HS17, was introduced in 2017 that added more satellite tuners and integrated the WVB functionality.[106]

DIRECTV began delivering broadband-only services requiring no DIRECTV branded equipment whatsoever. Under its new owner AT&T, mobile-device-only television packages were developed (i.e. WatchTV). The DIRECTV Stream device (model C71KW) became available in 2019 to customers of over-the-top (OTT) streaming service.[107]

In 2023, DIRECTV released GEMINI, combining mini-Genie capabilities with the same features developed for the DIRECTV Stream device.[108]

DirecTV blimp flying over West Las Vegas during the Consumer Electronics Show 2015

The DirecTV blimp named "lefty" was launched in October 2007 at the MLB World Series in Boston and has been seen all over the United States since its inception. The blimp flies mainly over live sporting events but has also been seen at other entertainment and charitable venues. This second-generation A-170LS Video Lightsign Lightship features a state-of-the-art video screen that displays full-color video images day or night. This lightsign, the only one of its kind in the world, is used to display messaging and advertising for DirecTV. The blimp has been recently spotted on Twitter as followers track the journeys of the blimp from one event to another. The airship is owned and operated by The Lightship Group, an advertising company based in Orlando, Florida.[126]

In August 2008, The Boston Globe reported that DirecTV received 20,000 complaints in less than three years to the Better Business Bureau on DirecTV slipping in cancellation fees.[129]

In August 2010, the BBB reported that it had received 39,000 complaints against DirecTV in the previous three years, and the BBB gave it an F (failing) grade. Many of the complaints concerned DirecTV's early termination fees, billing and service issues.[130]

On December 14, 2009, the Washington Attorney General's office filed a civil complaint against DirecTV seeking injunctive and other relief. The complaint was filed in the public interest when the Attorney General's office determined after a one-year investigation by its consumer protection division, that the company allegedly engaged in numerous repeated violations of the state's Consumer Protection Act.

The complaint alleged unfair or deceptive practices which include, but are not limited to:

• Unclear disclosures concerning rebate terms and conditions
• Unclear and/or unfair advertising for use of the term "free";
• Automatically extending contracts when customers require equipment repairs, upgrade equipment or move;
• Failing to disclose financial terms and conditions that the company's least expensive package of $29.99 per month is only available to customers who meet certain financing conditions and agree to have the costs automatically charged or debited.
• The suit also alleged that some cancellation fees assessed by the company were considered to be unfair, and
• That the company unfairly retained consumer deposits made to obtain services. Those who cancel service prior to the end of their contract lose part of the deposit and may also be charged cancellation fees.

The Attorney General's Office asked the court to compel DirecTV to change its business practices, impose civil penalties and provide restitution for consumers.

The case brought by Washington state was settled in December 2010, with DirecTV agreeing to pay over $1 million, and to correct many of its business practices.[131] DirecTV subsequently settled a similar suit with the other 49 states and the District of Columbia for $13.25 million.[132][133]

In September 2008, consumers filed a class action lawsuit with the Los Angeles Superior Court to stop DirecTV's practice of charging early cancellation penalties to subscribers. The lawsuit claims that DirecTV fails to disclose the penalty to new customers or to existing customers who replace their equipment or add a new receiver and that these practices are unlawful. In September 2009, a motion for a preliminary injunction was filed to block the company from automatically removing the fees from customers' bank accounts or charging their credit card accounts without their prior knowledge and written consent until the lawsuit is resolved.[134]

In December 2005, the U.S. Federal Trade Commission imposed a $5.3 million penalty on DirecTV for its violations of federal telemarketing regulations. It was the largest civil penalty the FTC had ever announced in a case enforcing any consumer protection law.[135]

On March 11, 2015, the Federal Trade Commission filed a lawsuit against DirecTV for deceptive advertising. The FTC claims the following:

• DirecTV failed to properly disclose important terms of its TV packages.
• DirecTV typically advertised 12-month deals without noting that:
  • A two-year contract is required,
  • Package prices rise substantially during the second year, and
  • Early cancellation fees may be imposed.
• DirecTV failed to mention that offers of free premium channels, such as HBO, would result in charges if the channels were not canceled before the free period ended.[136]