Cablevision 2012 Annual Report Download - page 50

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Our high-speed data services business, which accounted for 21% of our consolidated revenues, net of
inter-segment eliminations, for the year ended December 31, 2012, faces intense competition from other
providers of high-speed Internet access, including Verizon and AT&T in our New York metropolitan
service area and CenturyLink in our cable television systems in Montana, Wyoming, Colorado and Utah.
Due to our high penetration in our New York metropolitan service area (55.5% of serviceable passings at
December 31, 2012) and the impact of intense competition, our ability to maintain or increase our existing
customers and revenue in the future may continue to be negatively impacted.
Our VoIP offering, which accounted for 14% of our consolidated revenues, net of inter-segment
eliminations, for the year ended December 31, 2012, faces intense competition from other providers of
voice services, including carriers such as Verizon and AT&T in our New York metropolitan service area
and CenturyLink in our Optimum West service area. We compete primarily on the basis of pricing,
where unlimited United States and Canada (including Puerto Rico and the U.S. Virgin Islands) long
distance, regional and local calling, together with certain features for which the incumbent providers
charge extra, are offered at one low price. Due to our high penetration in the New York metropolitan
service area (45.5% of serviceable passings at December 31, 2012) and the impact of intense competition,
our ability to maintain or increase our existing customers and revenue in the future may continue to be
negatively impacted.
The Telecommunications Services segment advertising and other revenues accounted for 2% of our
consolidated revenues, net of inter-segment eliminations, for the year ended December 31, 2012.
Lightpath, which operates in our New York metropolitan service area, accounted for 5% of our
consolidated revenues, net of inter-segment eliminations, for the year ended December 31, 2012.
Lightpath operates in the most competitive business telecommunications market in the country and
competes against the very largest telecommunications companies - incumbent local exchange carriers
such as Verizon and AT&T, other competitive local exchange companies, and long distance companies.
To the extent that dominant market leaders decide to reduce their prices, future success of our Lightpath
business may be negatively impacted.
Other
Our Other segment, which accounted for 6% of our consolidated revenues, net of inter-segment
eliminations, for the year ended December 31, 2012, includes the operations of (i) Newsday, which
includes the Newsday daily newspaper, amNew York, Star Community Publishing Group, and online
websites including newsday.com and exploreLI.com, (ii) our motion picture theatre business, Clearview
Cinemas, (iii) the News 12 Networks, our regional news programming services, (iv) the MSG Varsity
network, our network dedicated entirely to showcasing high school sports and activities and other local
programming, (v) our cable television advertising company, Cablevision Media Sales Corporation
("Cablevision Media Sales"), and (vi) certain other businesses and unallocated corporate costs.
Newsday
Newsday's revenue is derived primarily from the sale of advertising and the sale of newspapers
("circulation revenue"). For the year ended December 31, 2012, advertising revenues accounted for 70%
and circulation revenues accounted for 29% of the total revenues of Newsday. Newsday's circulation
revenue is derived primarily from home delivery subscriptions of the Newsday daily newspaper, and
single copy sales of Newsday through local retail outlets.
Local economic conditions affect the levels of retail and classified newspaper advertising revenue.
General economic conditions, changes in consumer spending, auto sales, housing sales, unemployment
rates, job creation, readership and circulation levels and rates all impact demand for advertising. For the
year ended December 31, 2012, Newsday experienced a decline of $9,811 (5%) in advertising revenues as
compared to 2011. Circulation revenue for the year ended December 31, 2012 increased $976 (1%) over