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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. 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/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.

DirecTV's name is a portmanteau of 'direct' and 'TV' (as in direct broadcast satellite television). 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.

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. Hughes and other companies believed in the early 1990s that technology would soon make digital satellite television affordable. 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. was also awarded 27 frequencies at the same 101-degree location. USSB was awarded five frequencies by the FCC, at the coveted 101-degree west satellite location. Hubbard founded United States Satellite Broadcasting (USSB) in 1981 and was a leading proponent for the development of direct-broadcast satellite service in the United States. The new subsidiary was initially composed of four units: Delco Electronics Company, Hughes Aircraft Company, Hughes Space and Communications Company, and Hughes Network Systems. General Motors then merged Hughes Aircraft with its subsidiary Delco Electronics to create Hughes Electronics Corporation. 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. 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. Ostensibly created as a non-profit medical research foundation, HHMI was accused of being used by Hughes as a tax shelter.

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In 1953, Howard Hughes created the Howard Hughes Medical Institute (HHMI), to which he transferred full ownership of Hughes Aircraft. History Hughes Electronics Hughes Electronics logo (1985–1990) 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. Īs of the end of Q1 2021, AT&T had 15.9 million pay-TV customers, including DirecTV, U-Verse, and DirecTV Stream subscribers. On July 24, 2015, after receiving approval from the Federal Communications Commission and the Department of Justice, AT&T acquired DirecTV in a transaction valued at $67.1 billion. Its primary competitors are Dish Network, traditional cable television providers, IP-based television services, and other over-the-top video services.

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It also provides traditional linear television service delivered by IP through its U-verse TV brand and a Virtual MVPD service through its DirecTV Stream brand. Originally launched on June 17, 1994, its primary service is a digital satellite service serving the United States. DirecTV (trademarked as DIRECTV) is an American multichannel video programming distributor based in El Segundo, California.