Cablevision 2012 Annual Report Download - page 51

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the same period in the prior year due primarily to higher home delivery subscription revenues, partially
offset by lower single copy sales.
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.
Newsday's largest categories of operating expenses relate to the production and distribution of its print
products. These costs are driven by volume (number of newspapers printed and number of pages printed)
and the number of pages printed are impacted by the volume of advertising and editorial pages. The
majority of Newsday's other costs, such as editorial content creation, rent and general and administrative
expenses do not directly fluctuate with changes in advertising and circulation revenue.
Clearview Cinemas
Clearview Cinemas derives revenues primarily from box office ticket sales, concession stand sales, and,
to a lesser extent, from advertising shown at the start of each performance and from venue rentals. Our
ability to attract customers to our theatres is, to a large extent, dependent on our ability to obtain high
quality film content at competitive pricing.
We continue to explore potential strategic alternatives for Clearview. There is no assurance that we will
be successful in concluding a transaction for Clearview and we may discontinue our exploration of a
potential transaction at any time.
News 12 Networks
Our News 12 Networks, which include seven 24-hour local news channels and five traffic and weather
services dedicated to covering areas within the New York metropolitan area, derives its revenues from the
sale of advertising on its networks and affiliation fees paid by cable operators, principally Cablevision.
MSG Varsity
MSG Varsity is a network dedicated entirely to showcasing high school sports and activities and other
local programming. It does not receive intercompany affiliation fees from the Telecommunications
Services segment and has minimal revenues.
Cablevision Media Sales
Cablevision Media Sales is a cable television advertising company that derives its revenues from the sale
of local and regional commercial advertising time on cable television networks in the New York
metropolitan area, and which offers advertisers the opportunity to target geographic and demographic
audiences.
Critical Accounting Policies
In preparing its financial statements, the Company is required to make certain estimates, judgments and
assumptions that it believes are reasonable based upon the information available. These estimates and
assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the periods presented. The significant accounting
policies, which we believe are the most critical to aid in fully understanding and evaluating our reported
financial results, include the following: