Comcast 2006 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2006 Comcast annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

With the dramatic ramp-up of Comcast Digital Voice in 2006, we have built a fantastic
new engine for continued growth. We added 1.5 million Comcast Digital Voice
customers last year, more than fi ve times the number added in 2005. By year’s end,
we were marketing this service to 32 million homes, or 70% of our footprint, yet we
are only at 6% penetration. We intend to increase that dramatically in 2007. Our goal is
to reach at least 20% penetration, or nine million customers, by 2009. Given the power
of Triple Play, we are on pace to achieve that goal.
We are also excited about our latest initiative: expanding into commercial business
services — providing phone, Internet and video services to small and medium-sized
businesses (SMBs). In 2007, we are beginning to target an estimated fi ve million
SMBs in our markets. We estimate that those businesses generated $12 – $15 billion
in revenue for other providers in 2006, and our goal is to capture 20% or more of this
market over the next fi ve years. Buoyed by our success in the high-speed Internet
and residential digital voice markets, and riding on much of the same network and
infrastructure, we enter this new fi eld with great confi dence.
Our programming division continues to be a major value creator for the company
and helps us to partner and work with new platforms to help differentiate and grow
our cable business. In 2006, we acquired the remaining interest in E! Entertainment
Television and now own 100% of it. We brought in new on-air talent, like Ryan Seacrest,
and invested in programming that increased revenues and ratings at E!. We made
similar investments at The Golf Channel and VERSUS, drawing higher distribution
and ratings as the result of our expanded relationships with the PGA TOUR and the
National Hockey League.
Investing in a Future of Opportunity
Consumers want the best services at a great price. They want things to be simple and
convenient. They want to feel in control. The next great frontier for Comcast is to
integrate our products in ways never before imaginable — like providing a single access
point for customers to manage all their communications, or to plan and schedule their
TV experience no matter where they are.
Our product teams and Comcast Interactive Media are focused on developing
integrated services that offer entertainment and communications to consumers across
multiple platforms. Our programming networks are also working on that strategy.
PBS KIDS Sprout is available on a linear channel, on demand and online. In October
2006, we launched FEARnet, a new advertising-supported, multiplatform network
delivering the best of modern horror fi lms, streaming video and original content — on
demand, online and to mobile devices.
20