Dish Network 2015 Annual Report Download - page 41

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New technologies could also create new competitors for us. For instance, we face increasing consumer demand for the
delivery of digital video services via the Internet, including providing our Sling TV services and what we refer to as
“DISH Anywhere.” We expect to continue to face increased threats from companies who use the Internet to deliver
digital video services as the speed and quality of broadband and wireless networks continues to improve.
Technological innovation is important to our success and depends, to a significant degree, on the work of technically
skilled employees. We rely on EchoStar to design, develop and manufacture set-top boxes with advanced features and
functionality and to provide the streaming delivery technology and infrastructure for our Sling TV services. If EchoStar
is unable to attract and retain appropriately technically skilled employees, our competitive position could be materially
and adversely affected. In addition, delays in the delivery of components or other unforeseen problems associated with
our technology may occur that could materially and adversely affect our ability to generate revenue, offer new products
and services and remain competitive.
If our products and services, including without limitation our DISH branded and Sling TV branded products and
services, are not competitive, our business could suffer and our financial performance could be negatively impacted. Our
products and services may also experience quality problems, including outages and service slowdowns, from time to
time. If the quality of our products and services do not meet our customers’ expectations, then our business, and
ultimately our reputation, could be negatively impacted.
We rely on a single vendor or a limited number of vendors to provide certain key products or services to us such as
information technology support, billing systems, and security access devices, and the inability of these key vendors to
meet our needs could have a material adverse effect on our business.
Historically, we have contracted with and rely on a single vendor or a limited number of vendors to provide certain key
products or services to us such as information technology support, billing systems, and security access devices. If these
vendors are unable to meet our needs because they fail to perform adequately, are no longer in business, are experiencing
shortages or discontinue a certain product or service we need, our business, financial condition and results of operations
may be adversely affected. While alternative sources for these products and services exist, we may not be able to
develop these alternative sources quickly and cost-effectively, which could materially impair our ability to timely deliver
our products to our subscribers or operate our business. Furthermore, our vendors may request changes in pricing,
payment terms or other contractual obligations between the parties, which could cause us to make substantial additional
investments.
Our primary supplier of new set-top boxes, EchoStar, relies on a few suppliers and in some cases a single supplier, for
many components of our new set-top boxes, and any reduction or interruption in supplies or significant increase in
the price of supplies could have a negative impact on our business.
EchoStar relies on a few suppliers and in some cases a single supplier, for many components of our new set-top boxes
that we provide to subscribers in order to deliver our digital television services. Our ability to meet customer demand
depends, in part, on EchoStar’s ability to obtain timely and adequate delivery of quality materials, parts and components
from suppliers. In the event of an interruption of supply or a significant price increase from these suppliers, EchoStar
may not be able to diversify sources of supply in a timely manner, which could have a negative impact on our business.
Further, due to increased demand for products, many electronic manufacturers are experiencing shortages for certain
components. EchoStar has experienced in the past and may continue to experience shortages driven by raw material
availability, manufacturing capacity, labor shortages, industry allocations, natural disasters, logistical delays and
significant changes in the financial or business conditions of its suppliers that negatively impact our operations. Any
such delays or constraints could have a material adverse effect on our business, financial condition and results of
operations, including, among other things, our gross new subscriber activations.