Shaw 2014 Annual Report Download - page 38

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
The risks and uncertainties discussed below highlight the more important and relevant factors
that could significantly affect the Company’s operations. They do not represent an exhaustive
list of all potential issues that could affect the financial results of the Company. The principal
risks relate to:
ŠCompetition, technological change and regulatory regime
ŠEconomic conditions
ŠInterest rates, foreign exchange rates, and capital markets
ŠLitigation
ŠUninsured risks of loss
ŠReliance on suppliers
ŠProgramming expenses
ŠUnionized labour
ŠHolding company structure
ŠControl of the Company by the Shaw family
ŠInformation systems and internal business processes
ŠDividend payments
ŠAcquisitions and other strategic transactions
i) Competition, technological change and regulatory regime
Cable and satellite providers and television broadcasters operate in an open and competitive
marketplace. Shaw’s businesses face competition from regulated and unregulated entities
utilizing existing or new communications technologies and from illegal services. In addition, the
rapid deployment of new technologies, services and products has reduced the traditional lines
between telecommunications, Internet and broadcasting services and expands further the
competitive landscape. Shaw may face competition in the future from other technologies being
developed or yet to be developed. While Shaw continually seeks to strengthen its competitive
position through investments in infrastructure, technology, programming and customer service,
there can be no assurance that these investments will be sufficient to maintain Shaw’s market
share or performance in the future.
CABLE TELEVISION AND DTH
Shaw’s cable television and DTH systems currently compete or may in the future compete with
other distributors of video and audio signals, including other DTH satellite services, satellite
master antenna systems, multipoint distribution systems (“MDS”), other competitive cable
television undertakings and telephone companies offering video service. As noted above, Shaw
also competes with unregulated internet services, illegal satellite services including grey and
black market offerings, unregulated video services and offerings available over high-speed
internet connections. Continued improvements in the quality of streaming video over the
internet and the availability of television shows and movies online increases competition to
Shaw’s cable television and DTH businesses.
The Company expects that competition will continue to increase and there can be no assurance
that such increased competition will not have a material adverse effect on Shaw’s results of
operations. The Company also expects increased IPTV competition across Canada with respect
to its DTH Satellite services.
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