Shaw 2009 Annual Report Download - page 17

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option of choosing from a menu of programming packages designed to target and accommodate
subscriber interests, primary language, income level and type of household. Such packages are
marketed through Shaw Direct and a nation-wide distribution network of retail locations, including
Future Shop, Best Buy, The Brick, Visions, London Drugs, and various independent retailers.
During 2007, Shaw Direct completed a transition to an advanced modulation technology for its HD
broadcasting allowing it to increase its HD channel capacity. As part of its continuing commitment
to enhance its service offerings, Shaw Direct added 12 HD channels during 2009 and as at
August 31, 2009 offered 54 HD channels.
Shaw Broadcast Services
Shaw Broadcast Services redistributes television and radio signals via satellite to cable operators
and other multi-channel system operators in Canada and the U.S. and provides uplink and network
management services for conventional and specialty broadcasters on a contract basis.
The redistribution of signals to cable companies and other operators is known in Canada as SRDU
services. Shaw Broadcast Services currently provides SRDU and signal transport services to over
400 distribution undertakings, primarily cable operators, and redistributes 300 television signals
and over 120 audio signals in both English and French to multi-channel system operators. Shaw
Broadcast Services also offers HITS/QT and QT Plus (Headend In the Sky/Quick Take), which allow
small and medium size cable companies to offer digital signals to subscribers for a substantially
reduced capital outlay. HITS/QT and QT Plus facilitate increased availability and penetration of
digital services in Canada and thereby add incremental revenues to Shaw Broadcast Services from
the additional services provided to smaller cable companies.
Shaw Broadcast Services’ uplink and network management services include backhaul (transport of
signals to the uplink site), uplink (delivery of signal to the satellite so that it can be distributed to
cable operators and other distributors), bandwidth, authorization and signal monitoring. Shaw
Broadcast Services currently provides such services to approximately 125 specialty and pay
broadcasters across Canada,as well as to Canadian pay audio providers.
Shaw Tracking
Shaw Tracking provides asset tracking and communication services to over 600 companies in the
transportation industry in Canada, with approximately 38,000 vehicles using its services. Shaw
Tracking’s services capture all related information pertaining to an asset (i.e. location, performance
and productivity measures) and effectively integrate into a carrier’s fleet management system. Via
satellite, cellular and Bluetooth networks, Shaw Tracking provides immediate real time visibility to
a company’s fleet and freight. Shaw’s services and solutions target a wide variety of segments of
transportation across Canada.
D. Seasonality and other additional information concerning the business
(a) Seasonality and customer dependency
Although financial results of the business segments are generally not subject to significant seasonal
fluctuations, subscriber activity may fluctuate from one quarter to another. For example, the Cable
segment typically experiences the highest levels of subscriber growth during the first quarter as
post-secondary students return to school, customers return from vacation or reconnect cable in
anticipation of the new television season. Correspondingly, subscriber growth tends to be lower or
negative in the third and fourth quarters as the school year ends, vacation period begins and the
13
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009