Cablevision 2012 Annual Report Download - page 18

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electric utilities, long distance carriers, microwave carriers, wireless telephone system operators (such as
cellular, PCS, and specialized mobile radio), VoIP service providers, and private networks built by large
end users. A continuing trend toward business combinations and alliances in the telecommunications
industry may create stronger competition for Lightpath and the Bresnan CLECs.
Newsday
Newsday operates in a highly competitive market, which may adversely affect advertising and circulation
revenues. Newsday faces significant competition for advertising revenue from a variety of media sources.
Newsday also faces competition from other newspapers that reach a similar audience in the same
geographic area, as well as from magazines, shopping guides, yellow pages, websites, mobile-device
platforms, broadcast and cable television, radio and direct marketing; particularly if those media sources
provide advertising services that could substitute for those provided by Newsday within the same
geographic area. Specialized websites for real estate, automobile and help wanted advertising have
become increasingly competitive with our newspapers and websites for classified advertising and further
development of additional targeted websites is likely.
Newsday and the newspaper industry generally have experienced significant declines in advertising and
circulation revenue as circulation and readership levels continue to be adversely affected by competition
from new media news formats and less reliance on newspapers by some consumers, particularly younger
consumers, as a source of news and classifieds. A prolonged decline in circulation levels would also have
a material adverse effect on the rate and volume of advertising revenues.
Clearview Cinemas
Clearview Cinemas, as a smaller regional film exhibitor, competes with a number of large theatre chains
and independent theatres with respect to acquiring licenses to films and attracting patrons. The principal
competitive factors in obtaining films from distributors include licensing terms, seating capacity, location,
prestige of the theatre chain and of the particular theatre, and quality of projection and sound equipment.
Most of our competitors are in a stronger competitive position than Clearview Cinemas based upon these
factors. We believe that the principal competitive factors in attracting film audiences are the availability
of marketable films, the location of theatres, theatre comfort and environment, projection and sound
quality, 3D capability, level of service and ticket price. The theatre exhibition industry also faces
competition from other motion picture exhibition delivery systems, such as network, syndicated, on-
demand and pay television; DVD, and other home video systems; DVD by mail services such as Netflix
and Red Box and the availability of films over the Internet.
Regulation
Cable Television
Our cable television systems are subject to extensive federal, state and local regulations. Our systems are
regulated under congressionally imposed uniform national guidelines, first set forth in the Cable
Communications Policy Act of 1984 and amended by the Cable Television Consumer Protection and
Competition Act of 1992 and the Telecommunications Act of 1996 (collectively, the "Federal Cable
Act"), as well as under other provisions of the Federal Communications Act of 1934, as amended. The
Federal Cable Act, Federal Communications Act, and the regulations and policies of the FCC affect
significant aspects of the Company's cable system operations.
The following paragraphs describe the existing legal and regulatory requirements that are most significant
to our business today.
Franchising. The Federal Cable Act requires cable operators to obtain a franchise in order to provide
cable service. Regulatory responsibility for awarding franchises rests with state and local franchising