Dish Network 2003 Annual Report Download - page 8

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3
PART I
Item 1. BUSINESS
OVERVIEW
Our Business
Echostar Communications Corporation, through its DISH Network, is a leading provider of satellite delivered digital
television to customers across the United States. DISH Network services include hundreds of video, audio and data
channels, interactive television channels, digital video recording, high definition television (“HDTV”), international
programming, professional installation and 24-hour customer service.
We started offering subscription television services on the DISH Network in March 1996. As of December 31,
2003, the DISH Network had approximately 9.425 million subscribers. We currently have nine in-orbit satellites
which enable us to offer over 1,000 video and audio channels to consumers across the United States. Since we use
many of these channels for local programming, no particular consumer could subscribe to all channels, but all are
available using small consumer dishes. We believe that the DISH Network offers programming packages that have
a better “price-to-value” relationship than packages currently offered by most other subscription television
providers. As of December 31, 2003, there were over 22.0 million subscribers to direct broadcast satellite and other
direct-to-home satellite services in the United States. We believe that there are more than 94.0 million pay television
subscribers in the United States, and there continues to be significant unsatisfied demand for high quality,
reasonably priced television programming services.
DISH Network and EchoStar Technologies Corporation
The operations of EchoStar Communications Corporation (“ECC,” and together with its subsidiaries, “EchoStar,”
the “Company,” “we,” “us,” and/or “our”) include two interrelated business units:
• The DISH Network – which provides a direct broadcast satellite subscription television service we refer to as
“DBS” in the United States; and
• EchoStar Technologies Corporation (“ETC”) – which designs and develops DBS set-top boxes, antennae
and other digital equipment for the DISH Network. We refer to this equipment collectively as “EchoStar
receiver systems.” ETC also designs, develops and distributes similar equipment for international satellite
service providers.
Since 1994, we have deployed substantial resources to develop the “EchoStar DBS System.” The EchoStar DBS
System consists of our FCC-allocated DBS spectrum, nine in-orbit satellites (“EchoStar I” through “EchoStar IX”),
EchoStar receiver systems, digital broadcast operations centers, customer service facilities, and other assets utilized
in our operations. Our principal business strategy is to continue developing our subscription television service in the
United States to provide consumers with a fully competitive alternative to cable television service.
Other Information
We were organized in 1995 as a corporation under the laws of the State of Nevada. Our common stock is publicly
traded on the Nasdaq National Market under the symbol “DISH”. Our principal executive offices are located at
9601 South Meridian Boulevard, Englewood, Colorado 80112 and our telephone number is (303) 723-1000.
Recent Developments
Gemstar-TV Guide International transaction. On March 2, 2004, we announced a long-term patent license and
distribution agreement with Gemstar-TV Guide International, Inc. This transaction includes a one-time cash
payment by us of $190.0 million for use of Gemstar intellectual property and technology, use of the TV Guide brand
on our interactive program guides, and for distribution arrangements with Gemstar to provide for the launch and