Shaw 2010 Annual Report Download - page 10

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I. INTRODUCTION TO THE BUSINESS
A. Company overview – core business and strategies
Shaw Communications Inc. (“Shaw” or “the Company” or “the Corporation”) is a diversified Canadian
communications company whose core business is providing broadband cable television, Internet, Digital
Phone, telecommunications services (through Shaw Business Solutions), satellite direct-to-home
services (through Shaw Direct) and engaging programming content (through Shaw Media). Shaw Media
operates the second largest privately owned conventional television network in Canada, Global
Television, and 19 specialty networks. Shaw provides customers with high-quality entertainment,
information and communications services, utilizing a variety of distribution technologies.
Shaw’s business is encapsulated within its vision statement: “We, the leading entertainment and
communications company, deliver exceptional customer experience through outstanding people
sharing Shaw values.”
Shaw’s strategy is to maximize shareholder value through the generation of free cash flow.
1
The key
elements of this strategy include: leveraging its network infrastructure to offer customers a wider
variety of products and services; enhancing existing products to provide greater value to customers;
providing best-in-class 24/7/365 service; bundling product offerings to provide value to both Shaw
and the customer; and focusing on sound capital management and operational efficiencies to
maintain a competitive edge.
The strategy also includes promoting brand awareness, strengthening the Shaw name from coast to
coast. The Shaw brand is synonymous with diverse product offerings and exceptional customer
service.
During 2010 the Company operated two principal business segments: (1) Cable – comprised of
cable television, Internet, Digital Phone and Business Solutions operations; and (2) Satellite -
comprised of direct-to-home (“DTH”) and Satellite Services. As a percentage of Shaw’s consolidated
revenues for the year ended August 31, 2010, the Cable division and Satellite division represent
approximately 79% and 21% of Shaw’s business, respectively, which is similar to last year. During
2010 Shaw’s businesses generated consolidated service revenues of $3.72 billion.
A third business segment, Wireless, is currently in the development/construction stage. During
2008 the Company participated in the Canadian Advanced Wireless Spectrum (“AWS”) auction
and was successful in acquiring 20 megahertz of spectrum across most of its cable footprint. In
March 2010 the Company commenced activities on its wireless infrastructure build.
A fourth business segment, Media, which includes television broadcasting, will be included in fiscal
2011 after closing of the acquisition of 100% of the broadcasting business of Canwest Global
Communications Corp. (“Canwest”) including CW Investments Co. (“CW Media”), the company
that owns the specialty channels acquired from Alliance Atlantis Communications Inc. in 2007.
The general development of these business segments, including more specific details for the last
three fiscal years, is summarized below.
B. General development of the business
(i) Cable
Cable Television –The Company’s initial core business was cable television services, which today
provides the customer base and physical infrastructure for much of the Company’s distribution
6
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010
1
See definitions under key performance drivers on page 21.