Shaw 2015 Annual Report Download - page 11

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Shaw Communications Inc.
Management’s Discussion and Analysis
August 31, 2015
Our network-connected customers access our television offerings through an interactive, on-screen program guide which
includes access to on-demand movies and television programming and pay-per-view content, including scheduled sporting,
concerts and other special events. With an enabled video terminal, customers can record and store programs for later viewing
and pause and rewind live and recorded programs.
X1 for Network-Connected Consumers
We recognize that, in order to ensure that we can deliver best in class customer experiences, we need to join with global scale
initiatives and work with recognized industry leaders. In June 2015 we announced that we have partnered with Comcast to
make its market-leading cloud-based X1 video platform available to our customers. The X1 platform offers a seamless viewing
experience across multiple screens and devices both in and out of the home.
As a result of our collaboration with Comcast and Cisco, as integrator, we have aligned on the X1 technology roadmap and will
be the first in Canada to capitalize on this cloud technology.
We are in the late stages of our successful technical trial of this cloud-based platform and we are progressing on our plan to roll
out this new technology through 2016.
In October 2015 we began deployment of the whole home video terminal used by Comcast in place of our current gateway and
HD PVR terminals. This terminal operates on our current video platform and is future compatible for the rollout of the X1 in-
home experience for network-connected customers.
Phone
Shaw’s phone service offers a full-featured residential digital telephone service available in our network-connected homes as a
complement to our broadband Internet and video services.
Satellite
Through Shaw Direct, our Consumer team connects families across Canada with video and
audio programming by satellite. Shaw Direct customers have access to over 550 digital video
channels (including over 220 HD channels) and over 10,000 on-demand, pay-per-view and
subscription movie and television programming titles.
Similar to our network-connected video service, satellite subscribers can now choose from a selection of primary channel
packages and may add from a variety of sports, family and other theme specialty packages and a number of individual channels
that we offer on a channel-by-channel basis. In March 2016 we will expand choice with a new small basic service and smaller
theme packages and by December 2016 consumers will have the choice to subscribe for the new small basic service and add,
on a channel-by-channel basis, any of channels that we offer.
Shaw Direct is one of two satellite video services that are currently available across Canada. While Shaw Direct has many
subscribers in urban centres, market penetration for satellite video is stronger in areas having no or limited (generally fewer than
80 channels) cable television coverage. The service is marketed through Shaw Direct and a nation-wide distribution network of
third party retailers.
Shaw’s commitment to leading technology for Shaw Direct is evidenced on several fronts. With the 2013 launch of Anik G1,
Shaw Direct added a third satellite to its platform. This third satellite increased Shaw Direct’s capacity by approximately 30%,
enabling us to enhance our offerings, improve service quality and provide in-orbit back-up capacity. In addition, Shaw Direct
continues to transition to advanced modulation and encoding technology, including MPEG-4, for its programming which allows
us to increase channel capacity.
2015 Annual Report Shaw Communications Inc. 9