 claimed Pegasus did not fairly reimburse it for subscriber acquisition costs. VAULT CAREER LIBRARY 2005 Vault Inc. Vault Guide to the Top Telecom Employers The DIRECTV Group, Inc. I left my wallet in El Segundo In the first quarter of 2004, DIRECTV's $2.5 billion in revenue fell about $90 million short of covering operating costs. The company expects to continue to battle big cable companies for subscribers. It hopes to lure customers by showcasing programs from Murdoch's Fox Entertainment, gussied up with digital effects. (For example, Murdoch boasted of a feature that would let viewers select their own camera angles during NFL games or contests of the American Idol variety.) The battle with the well-capitalized cable companies will take years, SO DIRECTV has shed expensive businesses during 2004. In March, it sold its stake in XM Satellite Radio. A month later, it sold a commercial satellite fleet to a private equity firm for $2.78 billion in cash. In November 2004, the company was in talks with Apollo Management LP to sell a controlling interest in Hughes Network Systems. Even though Murdoch concedes that cable companies reached subscribers early with digital services, some observers expect DIRECTV to make a dent in cable's coverage. Murdoch used satellite to create powerful networks in Europe and Asia. He presumably hopes for more lavish rewards in the U.S. Mission control DIRECTV has been fine-tuning its offerings to suit American audiences. Although satellite TV has been available for years, the service typically did not include local channels. DIRECTV is changing that. The company has planned to launch a satellite late 2004 that will enable it to sell local channels in more markets. Chase Carey, a longtime Murdoch deputy who serves as the company's CEO, told Business Week that he hopes to serve all 210 local media markets in the U.S. by 2008. The company also aims to carry broadcast networks' enhanced video. In spring 2004, it rolled out high- definition programming from CBS in eight major markets. Moves 