lower costs, and they may be larger and have greater access to financial
resources than we have.
Improvements in the quality of streaming video over the Internet,
coupled with the increasing availability of television shows and movies
online are anticipated to increase competition for Canadian cable
television systems. If changes in technology are made to any alternative
Canadian multi-channel broadcasting distribution system, our cable
services may face increased competition. In addition, wireless Internet is,
in some instances, replacing traditional wireline Internet as the
technology for wireless Internet continues to develop.
The growing use of PVRs could affect our ability to generate television
advertising revenues because viewers can skip advertising aired on the
television networks. The emergence of subscriber-based satellite and
digital radio products could change radio audience listening habits and
have a negative effect on the results of our radio stations. Certain
audiences are also migrating to the Internet as more video and audio
content becomes available.
Dependence on Information Technology Systems
Our businesses depend on information technology systems for day-to-
day operations. If we are unable to operate our systems or make
enhancements to accommodate customer growth and new products
and services or our systems go down, it could have an adverse effect on
our ability to acquire new subscribers, service customers, manage
subscriber churn, produce accurate and timely subscriber invoices,
generate revenue growth and manage operating expenses. This could
have an adverse impact on our results and financial position.
Most of our employees and critical elements of our network
infrastructure and information technology systems are concentrated in
various physical facilities. If we cannot access one or more of these
facilities because of a natural or manmade disaster or otherwise, our
operations may be significantly affected to the extent that it may be
difficult for us to recover without a significant interruption in service or
negative impact to our revenue or customer base.
Information Security Risk
Security is essential to maintaining efficient, reliable business processes
and to enabling sustained business growth. Technology advancements
and the people using these technologies introduce new information
security risks. Cyber threats are maturing with time and their
sophistication and effectiveness are increasing. A security breach could
result in loss of revenue, reputation, and resources, or handing
74 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT