Shaw 2012 Annual Report Download - page 15

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2012
Satellite interests in these transponders are set forth in the table below.
Satellite Transponders
Nature of Satellite
Interest
Anik F2 18 Ku-band Owned
6 Ku-band Leased
2 Ku-band (partial) Leased
Anik F1R 28 Ku-band Leased
1 C-band Leased
1 C-band (partial) Leased
Intelsat Galaxy 16 1 Ku-band (partial) Leased
During 2010, Satellite entered into agreements to acquire capacity on a new satellite, Anik G1,
expected to be available in early calendar 2013. This capacity will provide additional bandwidth
for expanded customer choice, including new HD channels and other advanced services.
A more detailed description of each of the principal operations comprising the Company’s
Satellite Segment is set forth below.
Shaw Direct
Shaw Direct is one of three DTH satellite operators licensed by the CRTC to deliver digital
subscription video and audio programming services from satellites directly to subscribers’
homes and businesses. Shaw Direct began its national roll-out of digital DTH services in 1997
and, as at August 31, 2012, had approximately 910,000 subscribers.
The market for Shaw Direct’s digital DTH services can be divided into three principal
categories: households not served by cable and typically having access to a limited number of
broadcast services; households underserved by cable (i.e. served by cable systems that offer
fewer than 80 channels); and households that receive full service cable (80 or more channels),
primarily in urban areas. Other potential customers include commercial, institutional and
recreational facilities interested in video and audio programming.
With dual satellites (Anik F2 and Anik F1R) whose signals are received by subscribers through
an elliptical dish, as at August 31, 2012, Shaw Direct offered over 500 digital video and audio
channels with a programming line-up offering the majority of television services that are
available in Canada, including local over-the-air broadcasters, national networks, specialty
channels, U.S. and foreign channels, adult programming and ethnic services. Shaw Direct’s
subscribers have the 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 third party retail locations.
Shaw Direct continues to transition to advanced modulation and encoding technology, including
MPEG-4, for its programming allowing it to increase its channel capacity. As part of its
commitment to enhance its service offerings, over 10 standard and high definition channels
were added during 2012. As at August 31, 2012, Shaw Direct offered over 90 HD channels. In
addition, during 2012 Shaw Direct began to offer a streaming VOD service through the satellite
receiver. Shaw Direct’s VOD service currently provides customers with access to over 3,000
movie and TV titles and series.
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