Dish Network 2008 Annual Report Download - page 3

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March 31, 2009
Dear DISH Network Shareholders:
In our first full year of operation following the separation of the DISH Network pay-TV business from EchoStar, we
are pleased to have maintained a solid balance sheet and generated respectable cash flow, particularly in the current
economic environment. Our steadfast focus on conservative, smart business practices has placed the company in a
stable financial situation that allows us not only to work well in lean times, but also to focus our attention on the
continued improvement of our operations and customer service.
Over the past year, we made material investments in staffing, training, information systems and other initiatives
designed to improve our customer service and operational efficiency. To counter signal theft and protect the security
of our broadcast system, we began replacing our installed base of smart cards, an effort that will continue at least
through the first half of 2009. To combat other forms of fraud and piracy, we took a wide range of actions including
terminating retailers that we believe violated DISH Network’s business rules. We took steps toward simplifying our
marketing, pricing and promotions to counter aggressive promotional pricing by our competitors. And we
introduced stronger new customer offers of our own, including one programming offer of $9.99 per month; we are
confident this will appeal to consumers as they continue to make more thoughtful, deliberate choices on what they
purchase and how to save on their bills.
We made great strides in 2008 to strengthen our position as a leader in digital television and an innovative and
forward-thinking media entertainment company. We launched the industry’s first and only 100 percent HD service
and 1080p programming, more than doubled our national HD offering, and added more local HD channels in
markets throughout the United States. We made further enhancements to our industry-leading HD DVR technology
and invested in more advanced technology including the transmission of certain programming only in MPEG-4. We
continue to lead in international programming, and we introduced a variety of solutions for consumers affected by
the digital transition, including $9.99 Welcome Packs and a suite of top-rated digital-to-analog converter boxes.
And we’re not stopping there. Throughout 2009, we will continue to add more national HD channels and launch
more local channels and markets in HD. We will continue to explore new opportunities for long-term growth,
including the digital transition; pre-paid market; Alaska, Hawaii and Puerto Rico; and commercial and mobile video.
Finally, we will continue looking for ways to maintain and enhance our competitive position in the marketplace
while adding value to our customers’ subscriptions, including the integration of Sling technology into our HD DVR
receivers.
Without a doubt, the state of the economy presents many challenges, but it also creates many opportunities for
businesses to capitalize on their strengths and to flourish. I am excited that we are well positioned to take advantage
of our strengths and build upon the foundation we have established to become more operationally efficient, curtail
piracy and fraud, and implement process simplification throughout the greater enterprise. I hope you share that
excitement and appreciate your confidence and continued support.
Sincerely,
Charles W. Ergen
Chairman, President and Chief Executive Officer