Dish Network 2004 Annual Report Download - page 11

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3
improperly booking certain transactions, resulting in violations of several federal securities law provisions. We
intend to vigorously defend against this complaint.
DISH NETWORK
Programming
Value-Based Programming Packages. We use a “value-based” strategy in structuring the content and pricing of
programming packages available from the DISH Network. For example, we currently sell our entry-level
“America’s Top 60” package for $26.99 per month. This package includes 60 of our most popular video channels in
digital format. We estimate that cable operators would typically charge over $40.00 per month, on average, for
comparable entry-level expanded basic service.
Our “America’s Top 120” package currently sells for $37.99 per month and is similar to an expanded basic cable
package plus more than 30 commercial-free, CD-quality music channels. We estimate that cable operators would
typically charge over $45.00 per month, on average, for a similar package.
Our “America’s Top 180” currently sells for $47.99 per month, and our “America’s Everything Pak,” which
combines our “America’s Top 180” package and more than 30 commercial-free premium movie channels including
HBO, Cinemax, Showtime and Starz!, currently sells for $81.99 per month.
Cable operators do typically include local channels in their programming packages. However, we can provide
satellite-delivered local channels in digital format to any of these packages for an additional $5.99 per month in 155
of the largest markets in the United States, representing over 95% of all of U.S. television households.
We also offer each of these programming packages under our Digital Home Advantage promotion, which can
include a dual tuner receiver, installation in up to two rooms, and local channels where available at no additional
cost. Our Digital Home Advantage promotion prices are $31.99 per month for “America’s Top 60”, $42.99 per
month for “America’s Top 120”, and $52.99 and $86.99 per month, respectively, for “America’s Top 180” and
“America’s Everything Pak”. Generally, subscribers to any Digital Home Advantage package may add a digital
video recorder to their system for an additional cost of only $5.00 per month.
Movie Packages. We currently offer each of our four movie packages, which include up to 10 movie channels per
package, starting at $11.99 per month. We believe we currently offer more movie channels than cable typically
offers at a comparable price.
DISH Latino Programming Packages. We also offer a variety of Spanish-language programming packages. Our
“DISH Latino” package includes more than 30 Spanish-language programming channels for $24.99 per month. We
also offer “DISH Latino Dos,” which includes over 125 English and Spanish-language programming channels for
$34.99 per month. Our DISH Latino Max includes more than 170 Spanish and English-language channels for
$44.99 per month.
International Programming. We offer over 100 foreign-language channels including Arabic, South Asian, Hindi,
Russian, Chinese, Greek and many others. DISH Network remains the pay-TV leader in delivering foreign-
language programming to customers in the United States, and our foreign-language programming contributes
significantly to our subscriber growth. We believe foreign-language programming is a valuable niche product that
attracts new subscribers to DISH Network who are unable to get similar programming elsewhere. However, we face
increasing competition from other distributors of foreign language programming, including the Spanish-language
programming discussed above, and there can be no assurance that we will continue to experience growth in
subscribers to our foreign-language programming services. In addition, the increasing availability of foreign
language programming from our competitors, which in certain cases has resulted from our inability to renew
programming agreements on an exclusive basis or at all, could contribute to an increase in our subscriber churn.
Our agreements with distributors of foreign language programming have varying expiration dates, and some
agreements are on a month-to-month basis. There can be no assurance that we will be able to renew these
agreements on acceptable terms or at all.