Dish Network 2015 Annual Report Download - page 72

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62
Income (loss) from discontinued operations, net of tax. “Income (loss) from discontinued operations, net of tax”
includes the results of Blockbuster operations, which had ceased material operations as of December 31, 2013.
Pay-TV subscribers. We include customers obtained through direct sales, independent retailers and other independent
distribution relationships in our Pay-TV subscriber count. We also provide DISH branded pay-TV service to hotels,
motels and other commercial accounts. For certain of these commercial accounts, we divide our total revenue for these
commercial accounts by an amount approximately equal to the retail price of our DISH America programming package,
and include the resulting number, which is substantially smaller than the actual number of commercial units served, in
our Pay-TV subscriber count. Prior to 2015, we launched our Sling International video programming service, which
historically represented a small percentage of our Pay-TV subscribers. During 2015, we launched our Sling domestic
and Sling Latino services. All Sling TV subscribers are included in our Pay-TV subscriber count. Sling TV subscribers
receiving service for no charge, under certain new subscriber promotions, are excluded from our Pay-TV subscriber
count. Sling TV subscribers are reported net of disconnects in our gross new Pay-TV subscriber activations. For
customers who subscribe to both our DISH branded pay-TV service and our Sling branded pay-TV services, each
subscription is counted as a separate Pay-TV subscriber.
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 DISH branded 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. As described above, Sling TV subscribers are reported net of disconnects in our gross new
Pay-TV subscriber activations. Therefore, to the extent that our Sling TV subscriber base grows, our Pay-TV churn rate
will be positively impacted.
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 ” and “Capitalized interest related to FCC authorizations,” as
shown on our Consolidated Statements of Cash Flows.