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Shaw Communications Inc.
Management’s Discussion and Analysis
August 31, 2015
to be applied in the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance
obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance
obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new
standard is to be applied either retrospectively or on a modified retrospective basis and is effective for the annual period
commencing September 1, 2018.
ŠIFRS 9 Financial Instruments: Classification and Measurement, replaces IAS 39 Financial Instruments and applies a
principal-based approach to the classification and measurement of financial assets and financial liabilities, including an
expected credit loss model for calculating impairment, and includes new requirements for hedge accounting. The
standard is required to be applied retrospectively for the annual period commencing September 1, 2018.
KNOWN EVENTS, TRENDS, RISKS AND UNCERTAINTIES
The discussion in this MD&A addresses only what management has determined to be the most significant known events, trends,
risks and uncertainties relevant to the Company, its operations and/or its financial results. This discussion is not exhaustive.
The discussion of these matters should be considered in conjunction with the “Caution Concerning Forward-Looking
Statements”.
Competition and technological change
Shaw operates in an open and competitive marketplace. Our businesses face competition from regulated and unregulated
entities using 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 further expands 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, and through acquisitions, there can be no assurance that these
investments will be sufficient to maintain Shaw’s market share or performance in the future.
The following competitive events, trends, risks and/or uncertainties specific to areas of our business may have a material
adverse effect on Shaw, its operations and/or its financial results. In each case, the competitive events, trends, risks and/or
uncertainties may increase or continue to increase.
Consumer video
Shaw’s Consumer video services, delivered through both our network-connected and satellite platforms, compete with other
distributors of video and audio signals, including telephone companies offering video services, other satellite-based video
services, other competitive cable television undertakings and OTA local and regional broadcast television signals. We also
compete increasingly with unregulated over-the-top video services and offerings available over Internet connections. Continued
improvements in the quality of streaming video over the Internet and the increasing availability of television shows and movies
online has increased and will continue to increase competition to Shaw’s Consumer video services. Our satellite services also
compete with illegal satellite services including grey and black market offerings.
We expect that competition, including aggressive discounting practices by competitors to gain market share, will continue to
increase.
Consumer Internet
High-speed Internet access services are principally provided through cable modem and digital subscriber line technology, and
increasingly through fibre to the home. Shaw competes with a number of different types of ISPs offering residential Internet
access including independent service providers, traditional telephone companies, wireless providers and resellers making use of
TPIA to provide Internet access in various markets.
Shaw expects that consumer demand for higher Internet access speeds and greater bandwidth will continue to be driven by
bandwidth-intensive applications including streaming video, digital downloading and interactive gaming. As described further
under “Shaw’s Network”, Shaw continues to expand the capacity and efficiency of its network to handle the anticipated
increases in consumer demand for higher Internet access speeds and greater bandwidth, however there can be no assurance
that our investments in network capacity will continue to meet this increasing demand.
30 Shaw Communications Inc. 2015 Annual Report