Cablevision 2013 Annual Report Download - page 49

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(43)
Other
Our Other segment, which accounted for 6% of our consolidated revenues, net of inter-segment
eliminations, for the year ended December 31, 2013, 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) the News 12 Networks, our regional news
programming services, (iii) Cablevision Media Sales Corporation ("Cablevision Media Sales"), a cable
television advertising company, (iv) MSG Varsity, a program service dedicated to showcasing high
school sports and activities and other local programming, and (v) 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, 2013, advertising revenues accounted for 69%
and circulation revenues accounted for 30% of the total revenues of Newsday. Newsday's circulation
revenue is derived primarily from home delivery and digital subscriptions of the Newsday daily
newspaper as well as 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.
The newspaper industry generally has 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 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.
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.
Cablevision Media Sales
Cablevision Media Sales is a cable television advertising company that derives its revenues primarily
from the sale of local and regional commercial advertising time on cable television networks in the New
York metropolitan area, which offers advertisers the opportunity to target geographic and demographic
audiences.
MSG Varsity
MSG Varsity is a program service dedicated to showcasing high school sports and activities and other
local programming. It does not receive intercompany affiliation fees from the Cable segment and has
minimal revenues. We have recently reduced the activities of MSG Varsity. See details of the related
cost reductions in the "Business Segments Results ± Other" discussion below.