Rogers 2015 Annual Report Download - page 28

MANAGEMENT’S DISCUSSION AND ANALYSIS
• Rapid Application Development Program, which allows
businesses to develop and deliver rich mobile experiences
across various Wi-Fi devices, leveraging our Managed Wi-Fi as
aService;and
• extensive wireless and cable access networks services for primary,
bridging, and back-up connectivity.
MEDIA
Our portfolio of Media assets reaches Canadians coast-to-coast.
In Television, we operate several conventional and specialty
television networks:
• City network, which, together with affiliated stations, has
broadcast distribution to approximately 89% of Canadian
households;
• OMNI multicultural broadcast television stations;
• specialty channels that include Outdoor Life Network, FX
(Canada), FXX (Canada), and G4 Canada;
• Sportsnet’s four regional stations, Sportsnet ONE, Sportsnet 360,
and Sportsnet World; and
• TSC, Canada’s only nationally televised shopping channel, which
generates a significant and growing portion of its revenue from
online sales.
In Radio, we operate more than 50 AM and FM radio stations in
markets across Canada, including popular radio brands such as
98.1 CHFI, 680 News, Sportsnet The FAN, KISS, JACK FM, and
SONiC.
Our Publishing services and products include:
• many well-known consumer magazines, such as Maclean’s,
Chatelaine, Flare, Hello! Canada, and Canadian Business;
• a leading position in marketing, medical, financial, and trade
publications;
• a broad digital presence with a number of online publications
that continue the extension of content across new platforms; and
• Texture by Next Issue, our digital magazine service, which offers
unlimited access to a catalogue of over 190 premium Canadian
and US magazine titles.
Our NHL Agreement, which began with the 2014-2015 NHL
season, allows us to deliver unprecedented coverage of
professional hockey, with more than 1,200 regular season games
per season streamed across television, smartphones, tablets, and
the Internet, both through traditional streaming services as well as
Rogers NHL GameCentre Live. Our NHL Agreement grants Rogers
national rights across television broadcasts, smartphones, tablets,
and Internet streaming to all NHL regular season and playoff
games, the Stanley Cup Final, all NHL-related special events and
non-game events (such as the NHL All-Star Game and the NHL
Draft), and rights to sublicense broadcasting rights to TVA and the
Canadian Broadcasting Corporation (CBC) and to use the Hockey
Night In Canada brand through a sublicense agreement.
In Sports Entertainment, we own the Toronto Blue Jays, Canada’s
only Major League Baseball (MLB) team, and the Rogers Centre
event venue, which hosts the Toronto Blue Jays’ home games,
other professional league games, concerts, trade shows, and
special events.
Our online and mobile digital media platforms include digital
advertising across websites and mobile platforms, including real-
time advertisement website banners, digital content subscriptions,
and e-commerce solutions.
OTHER
Other services we offer to consumers and businesses include:
• Rogers Smart Home Monitoring, an innovative home security
and automation system;
• Rogers Platinum MasterCard, a credit card that allows customers
to earn cashback rewards points on credit card spending; and
•localdigitalservices:
• OutRank, an online marketing and advertising tool for small
businesses; and
• Vicinity, an automated loyalty program for small businesses.
OTHER INVESTMENTS
We hold interests in a number of associates and joint
arrangements, some of which include:
• our 37.5% ownership interest in Maple Leaf Sports &
Entertainment Ltd. (MLSE), which owns the Toronto Maple Leafs,
the Toronto Raptors, Toronto FC, and the Toronto Marlies, as
well as various associated real estate holdings;
• our joint venture, shomi, a subscription-based video-on-demand
streaming service available online and via cable set-top boxes to
all Canadians, with a library of over 15,000 hours of movies and
past seasons of some of the most popular TV shows;
• our 50% ownership interest in Glentel, a large provider of
multicarrier wireless and wireline products and services with
several hundred Canadian retail distribution outlets, as well as
operations in the US and Australia; and
• our joint operation, Inukshuk Wireless Partnership, created to
operate a national fixed wireless telecommunications network to
be used by the partners of the joint operation and their
subsidiaries.
COMPETITION
Competition in the wireless industry from national and regional
operators and resellers has led to a highly competitive
environment, as consumers have considerable choice in service
providers and plan offerings across a wide array of pricing and
service points. This puts downward pressure on pricing, potentially
reducing profit margins, and could also impact our customer
churn.
Traditional wireline telephone and television services are offered
over the Internet. This has allowed more non-traditional providers
to enter the market and has changed how traditional providers
compete. This is changing the mix of packages and pricing that
service providers offer and could impact customer churn levels.
In the media industry, there continues to be a shift towards digital
and online media consumption by consumers, which in turn drives
advertisers to direct more advertising dollars to digital and online
versus traditional media. In addition, the number of competitors
has increased as more digital and online media companies,
including large global companies, enter the market.
WIRELESS
We compete on customer experience, quality of service, scope of
services, network coverage, sophistication of wireless technology,
breadth of distribution, selection of devices, branding and
positioning, and price.
• Wireless technology — our extensive LTE network caters to
customers seeking the increased capacity and speed it provides.
We compete with Bell, Telus, MTS, Videotron, SaskTel, and
26 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT