Shaw 2014 Annual Report Download - page 15

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
Satellite’s interest in these transponders is set forth in the table below.
Satellite Transponders
Nature of Satellite
Interest
Anik G1 16 xKu-band Leased
Anik F2 16 Ku-band Owned
6 Ku-band Leased
2 Ku-band (partial) Leased
Anik F1R 28 Ku-band Leased
1 C-band Leased
Intelsat Galaxy 16 1 Ku-band (partial) Leased
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 Canadian Radio-television
Telecommunications Commission (the “CRTC” or “Commission”) 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, 2014 had approximately 880,000 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. Shaw Direct 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.
With the launch of Anik G1 in 2013, Shaw Direct’s satellite television services capacity
expanded by approximately 30 percent through the long term lease of 16 national transponders.
The new transponders provide bandwidth for expanded subscriber choice, including new HD
channels and other advanced services. The additional transponders also provide enhanced
service quality, acting as important in-orbit back-up capacity. Shaw Direct continues to
transition to advanced modulation and encoding technology, including MPEG-4, for its
programming allowing it to increase its channel capacity.
With three satellites (Anik F2, Anik F1R and Anik G1) whose signals are received by subscribers
through an elliptical dish, Shaw Direct offers over 650 digital video and audio channels,
including over 220 HD channels. Shaw Direct’s programming line-up offers 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. In addition, Shaw Direct offers a streaming VOD service through the satellite
receiver. Shaw Direct’s VOD service provides customers with access to over 10,000 movie and
TV titles and series. Shaw Go services are also available to Shaw Direct subscribers, which
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