Dish Network 2012 Annual Report Download - page 2

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March 22, 2013
Dear DISH Network Shareholder:
2012 will be remembered as a time of transformation for our brand and for our company. The consistent theme for
the year was delivering choice and control over the DISH® experience to our customers -- anytime, anywhere -- for
today and for tomorrow. In 2012, we took the necessary steps to prepare for our future.
Last year, we launched the Hopper® Whole-Home HD DVR, an entertainment platform that delivers the DISH
experience throughout the house and beyond. The Hopper made waves with consumer-friendly features like
PrimeTime AnytimeTM and AutoHopTM, the consumer-enabled commercial skipping feature. Hopper also features
more storage than any competitor in the pay-TV industry. In January of this year, we began integrating Sling
technology with Hopper, allowing customers to enjoy the DISH experience anywhere on PCs, tablets and
smartphones.
With distribution beginning last March, the Hopper and its companion Joey® units are serving millions of television
sets. Our upgraded Hopper with Sling, introduced in January, was named a “Best in Show” at the 2013 International
CES and has earned many positive reviews as the best-in-class DVR.
I credit not only the design and capabilities of the Hopper, but also the marketing and branding efforts behind the
product as contributors to the change in 2012 subscriber trends. For the year, we turned positive in net pay-TV
subscribers, and we grew gross pay-TV subscriber additions, with more than 2.7 million activations.
Customer satisfaction and churn improved in the year, as well. The American Customer Satisfaction Index ranked
DISH first among the nation’s satellite and cable providers in key measures of customer experience, including
overall value, satisfaction and loyalty. Our 2012 churn rate was our best since 2003.
While the core of our business is centered on delivering access to the best in video entertainment anywhere, in 2012,
we took an important step beyond video. In late September, we launched dishNET, a high-speed Internet offering
available to customers nationwide who are unserved or underserved by broadband. With only a few months under
our belt, dishNET sales have been encouraging.
Operationally, 2012 saw the realization of investments in what we call our ”Business Transformation” initiative. In
April, we completed one of the most significant IT system upgrades our industry has witnessed. This effort touched
everything we do, from how we bill our customers to how we dispatch our technicians. This transformation allows
us to operate more efficiently across our businesses.
In 2012, we covered important ground on our path to becoming an innovative competitor in the wireless space.
Having acquired spectrum licenses from DBSD and TerreStar, we were able to gain FCC approval on new rules that
allow us to provide terrestrial-only wireless services that could compete with other wireless providers.
The convergence of wireless, video, data and voice on fixed and mobile platforms is inevitable. Customers expect it.
And, they will demand it. As we continue to transform DISH, we see the opportunity to provide all of those
communications and entertainment services to each of our customers, anywhere and anytime.
I’m pleased that we’ve made so much progress over the year. I appreciate your support, and I’m looking forward to
reporting more successes as we continue to deliver the new DISH.
Sincerely,
Charles W. Ergen
Chairman of the Board of Directors