Dish Network 2014 Annual Report Download - page 73
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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
63
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Broadband subscribers. We include customers who subscribe to either our satellite broadband service or our
wireline broadband service under the dishNET brand as Broadband subscribers. Each broadband customer is
counted as one Broadband subscriber, regardless of whether they are also a Pay-TV subscriber. A subscriber of both
our pay-TV and broadband services is counted as one Pay-TV subscriber and one Broadband subscriber.
Pay-TV average monthly revenue per subscriber (“Pay-TV ARPU”). We are not aware of any uniform standards
for calculating ARPU and believe presentations of ARPU may not be calculated consistently by other companies in
the same or similar businesses. We calculate Pay-TV average monthly revenue per Pay-TV subscriber, or Pay-TV
ARPU, by dividing average monthly “Subscriber-related revenue,” excluding revenue from broadband services, for
the period by our average number of Pay-TV subscribers for the period. The average number of Pay-TV subscribers
is calculated for the period by adding the average number of Pay-TV subscribers for each month and dividing by the
number of months in the period. The average number of Pay-TV subscribers for each month is calculated by adding
the beginning and ending Pay-TV subscribers for the month and dividing by two.
Pay-TV average monthly subscriber churn rate (“Pay-TV churn rate”). We are not aware of any uniform
standards for calculating subscriber churn rate and believe presentations of subscriber churn rates may not be
calculated consistently by different companies in the same or similar businesses. We calculate Pay-TV churn rate
for any period by dividing the number of Pay-TV subscribers who terminated service during the period by the
average number of Pay-TV subscribers for the same period, and further dividing by the number of months in the
period. When calculating the Pay-TV churn rate, the same methodology for calculating average number of Pay-TV
subscribers is used as when calculating Pay-TV ARPU.
Adjusted free cash flow. We define adjusted free cash flow as “Net cash flows from operating activities from
continuing operations” less “Purchases of property and equipment,” as shown on our Consolidated Statements of
Cash Flows.