Dish Network 2009 Annual Report Download - page 31

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21
We may be unable to pass programming costs on to our customers, which could have a material adverse effect on
our business, financial condition and results of operations.
We may be required to make substantial additional investments to maintain competitive HD programming
offerings.
We believe that the availability and extent of HD programming has become and will continue to be a significant
factor in consumer’s choice among pay-TV providers. Other pay-TV providers may have more successfully
marketed and promoted their HD programming packages and may also be better equipped and have greater
resources to increase their HD offerings to respond to increasing consumer demand for this content. We may be
required to make substantial additional investments in infrastructure to respond to competitive pressure to deliver
additional HD programming, and there can be no assurance that we will be able to compete effectively with HD
programming offerings from other pay-TV providers. In particular, in recent quarters, our capital expenditures have
increased because we have made significant efforts to expand our HD capability and provide more of our
subscribers with HD set top boxes.
Technology in our industry changes rapidly and could cause our services and products to become obsolete.
Our operating results are dependent to a significant extent upon our ability to continue to introduce new products
and services on a timely basis and to reduce costs of our existing products and services. We may not be able to
successfully identify new product or service opportunities or develop and market these opportunities in a timely or
cost-effective manner. The success of new product development depends on many factors, including proper
identification of customer need, cost, timely completion and introduction, differentiation from offerings of
competitors and market acceptance. New technologies could also create new competitors for us. For instance, we
may face threats from companies who use the Internet to deliver digital video services as the speed and quality of
broadband and wireless services improve.
Technology in the pay-TV industry changes rapidly as new technologies are developed, which could cause our
services and products to become obsolete. We and our suppliers may not be able to keep pace with technological
developments. If the new technologies on which we intend to focus our research and development investments fail
to achieve acceptance in the marketplace, our competitive position could be negatively impacted causing a reduction
in our revenues and earnings. We may also be at a competitive disadvantage in developing and introducing complex
new products and technologies because of the substantial costs we may incur in making these products or
technologies available across our installed base of over 14 million subscribers. For example, our competitors could
be the first to obtain proprietary technologies that are perceived by the market as being superior. Further, after we
have incurred substantial costs, one or more of the technologies under our development, or under development by
one or more of our strategic partners, could become obsolete prior to its introduction. In addition, delays in the
delivery of components or other unforeseen problems in our DBS system may occur that could materially and
adversely affect our ability to generate revenue, offer new services and remain competitive.
Technological innovation is important to our success and depends, to a significant degree, on the work of technically
skilled employees. We rely on EchoStar to design and develop set-top boxes with advanced features and
functionality. If EchoStar is unable to attract and retain appropriately technically skilled employees, our competitive
position could be materially and adversely affected.
We may need additional capital, which may not be available on acceptable terms or at all, to continue investing in
our business and to finance acquisitions and other strategic transactions.
The weak financial markets could make it more difficult for non-investment grade borrowers of high yield
indebtedness to access capital markets at acceptable terms or at all. We may need to raise additional capital in the
future to among other things, continue investing in our business, construct and launch new satellites, and to pursue
acquisitions and other strategic transactions.