We are a global media and technology company with two primary businesses,
Comcast Cable and NBCUniversal. Comcast was incorporated under the laws of Pennsylvania
in 2001, and through its predecessors, has developed, managed and operated cable
systems since 1963. In 2011, we closed the NBCUniversal transaction in which
we acquired control of the businesses of NBCUniversal, and in 2013, we acquired
GE’s remaining 49% common equity interest in NBCUniversal. We present
our operations for Comcast Cable in one reportable business segment, referred
to as Cable Communications, and our operations for NBCUniversal in four reportable
business segments.
Cable Communications: Consists of the operations of Comcast Cable, which is
the nation’s largest provider of video, high-speed Internet and voice
services (“cable services”) to residential customers under the XFINITY
brand, and we also provide similar services to businesses and sell advertising.
Cable Networks: Consists primarily of our national cable networks, our regional
sports and news networks, our international cable networks, and our cable television
production operations.
Broadcast Television: Consists primarily of the NBC and Telemundo broadcast
networks, our 10 NBC and 17 Telemundo owned local broadcast television stations,
and our broadcast television production operations.
Filmed Entertainment: Consists primarily of the studio operations of Universal
Pictures, which produces, acquires, markets and distributes filmed entertainment
worldwide.
Theme Parks: Consists primarily of our Universal theme parks in Orlando and
Hollywood.
The Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks
segments comprise the NBCUniversal
Customer and Technical Service
We service our customers through local, regional and national call and technical
centers. Generally, our call centers provide 24-hour per day, 7-day per week
call answering capability, telemarketing and other services. Our technical services
function performs various tasks, including cable installations, transmission
and distribution plant maintenance, plant upgrades and other customer service
related activities. In 2003, we opened new call centers and expanded certain
of our existing call centers to provide customer service and support to the
cable systems acquired in the Broadband acquisition.
Sales and Marketing
Our sales efforts are primarily directed toward generating incremental revenues
in our franchise areas and increasing the number of subscribers we serve. We
sell our products and services through:
telemarketing,
direct mail advertising,
door-to-door selling,
cable television advertising,
local media advertising, and
retail outlets.
Competition
Video Services
Our cable systems compete with a number of different sources that provide news,
information and entertainment programming to consumers, including:
program distributors that use direct broadcast satellite, or DBS, systems that
transmit satellite signals containing video programming, data and other information
to receiving dishes of varying sizes located on the subscribers premises,
local television broadcast stations that provide off-air programming which
can be received using an antenna and a television set, as well as broadcast
digital subscription services that can be received by a special set-top box,
satellite master antenna television systems, commonly known as SMATVs, that
generally serve condominiums, apartment and office complexes, and residential
developments,
other operators who build and operate wireline communications systems in the
same communities that we serve, including those operating as franchised cable
operations or under
an alternative regulatory scheme known as Open Video Systems, or OVS,
interactive online computer services, including Internet distribution of movies,
newspapers, magazines and book stores,
movie theaters,
live concerts and sporting events, and
video stores and home video products.
In recent years, Congress has enacted legislation and the FCC has adopted regulatory
policies intended to provide a favorable operating environment for existing
competitors and for potential new competitors to our cable systems. The FCC
has recently created a new wireless service, known as Multichannel Video Distribution
and Data Service, or MVDDS, that we also expect to compete with our cable systems.
In order to compete effectively, we strive to provide, at a reasonable price
to subscribers, new products and services, superior technical performance and
customer service, and a greater variety of video programming.
DBS Systems. According to recent government and industry reports, conventional,
medium and high-power satellites currently provide video programming to over
20 million customers in the United States. DBS providers with high-power satellites
typically offer to their subscribers more than 300 channels of programming,
including programming services substantially similar to those our cable systems
provide. Two companies, DIRECTV and EchoStar, provide service to substantially
all of these DBS subscribers.
DBS service can be received throughout the continental United States through
a small roof top or side-mounted outside antenna. DBS systems use video compression
technology to increase channel capacity and digital technology to improve the
quality and quantity of the signals transmitted to their subscribers. Our digital
cable service is competitive with the programming, channel capacity and the
digital quality of signals delivered to subscribers by DBS systems.
Federal legislation establishes, among other things, a permanent compulsory
copyright license that permits DBS systems to retransmit local broadcast television
signals to subscribers who reside in the local television station's market.
These companies are currently transmitting local broadcast signals in most markets
that we currently serve. Additionally, federal law generally provides DBS systems
with access to all cable-affiliated video programming services delivered by
satellite. As a result, satellite carriers are competitive to cable system operators
like us because they offer programming that closely resembles what we offer.
These satellite carriers are attempting to expand their service offerings to
include, among other things, high-speed Internet service, and are entering marketing
arrangements in which their service is promoted and sold by local exchange carriers.
SMATV. Our cable systems also compete for subscribers with SMATV systems. SMATV
system operators typically are not subject to regulation like local franchised
cable system operators. SMATV systems offer subscribers both improved reception
of local television stations and many of the same satellite-delivered programming
services offered by franchised cable systems. In addition, some SMATV operators
are offering packages of telephony, data and video services to private residential
and commercial developments. SMATV system operators often enter into exclusive
service agreements with building owners or homeowners' associations, although
some states have enacted laws to provide cable systems access to these complexes.
Overbuilds. We operate our cable systems pursuant to a non-exclusive franchise
that is issued by the community's governing body such as a city council, a county
board of supervisors or, in some cases, by a state regulatory agency. Federal
law prohibits franchising authorities from unreasonably denying requests for
additional franchises, and it permits franchising authorities to operate cable
systems. Companies that traditionally have not provided cable services and that
have substantial financial resources (such as public utilities that own certain
of the poles to which our cables are attached) may also obtain cable franchises
and may provide competing communications services. These and other wireline
communications systems offer cable and other communications services in various
areas where we hold franchises. We anticipate that facilities-based competitors
will develop in other franchise areas that we serve.
High-Speed Internet Services
Most of our cable systems offer high-speed Internet services within their service
areas. These systems compete with a number of other companies, many of whom
have substantial resources, including:
local telephone companies, such as Verizon Communications, Inc., SBC Communications,
Inc., BellSouth Corporation and Qwest Communications International, Inc.,
existing ISPs, such as America Online, Earthlink, Inc. and Microsoft Corporation,
and
long distance telephone companies, such as AT&T Corp. and Sprint Corporation.
Phone Services
Our traditional circuit-switched local service competes against incumbent local
exchange carriers, cellular telephone service providers, competitive local exchange
carriers (including established long distance companies) and VoIP service providers.
Many telecommunications carriers are expanding their offerings to include high-speed
Internet service, such as DSL. The incumbent local exchange carriers have substantial
capital and other resources, longstanding customer relationships, extensive
existing facilities and network rights-of-way. A few competitive local exchange
carriers also have existing local networks and significant financial resources.
Content
We have made investments in national cable television networks and other regional
programming-related enterprises as a means of generating additional revenues
and subscriber interest.
Consolidated Programming Investments
Our programming investments are comprised of the following:
E! Entertainment Television, Style Network, The Golf Channel, Outdoor Life
Network and G4 are our 24-hour national cable television networks. These networks
provide programming dedicated to a variety of special interests.
Comcast Spectacor is our group of businesses that perform live sporting events
and that own or manage facilities and venues for sports activities, sports events,
concerts and other special events. It consists principally of the Philadelphia
Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large
multi-purpose arenas in Philadelphia.
Comcast SportsNet, Comcast SportsNet Mid-Atlantic, Comcast SportsNet Chicago,
Cable Sports Southeast and CN8-The Comcast Network are our 24-hour, regional
programming-related enterprises that provide programming principally to support
our cable networks.
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