Comcast 2006 Annual Report Download - page 31

29 Comcast 2006 Annual Report MD&A
VIDEO SUBSCRIBERS
(in millions)
2.0
24.2
6.2
8.0
20.4
9.1
20.3
4.5
12.4 11.2 11.5
200620052004
Basic Cable Subscribers Digital Cable Subscribers*
Digital Starter
Digital Cable
Digital Cable with
DVR and/or HDTV
*Digital Cable subscriber detail presented for 2006 only.
Revenues increased as a result of higher pricing on our basic video
service, growth in our digital cable services and, in 2006, the addi-
tion of our newly acquired cable systems. Our newly acquired
cable systems added approximately 3.7 million video subscrib-
ers and contributed $1.143 billion of our video revenue growth for
the year ended December 31, 2006. As a result of these factors,
our average monthly video revenue per video subscriber increased
from $50 in 2004 to $57 in 2006.
High-Speed Internet. We offer high-speed Internet service with
Internet access at downstream speeds from 6Mbps to 16Mbps,
depending on the level of service selected. This service also
includes our interactive portal, Comcast.net, which provides mul-
tiple e-mail addresses and online storage, as well as a variety of
proprietary content and value-added features and enhancements
that are designed to take advantage of the speed of the Internet
service we provide.
HIGH-SPEED INTERNET SUBSCRIBERS
(in millions)
6.6
8.1
11.5
200620052004
■
■
■
■
Revenues increased in 2006 and 2005 as a result of subscriber
growth and, in 2006, the addition of our newly acquired cable sys-
tems. As of December 31, 2006, 24.5% of our homes passed
subscribed to our high-speed Internet service, compared to 21.1%
and 17.8% as of December 31, 2005 and 2004, respectively. Our
newly acquired cable systems added approximately 1.7 million
high-speed Internet subscribers and contributed $379 million of
our high-speed Internet revenue growth for the year ended Decem-
ber 31, 2006. Average monthly revenue per high-speed Internet
subscriber has remained relatively stable between $42 and $43
from 2004 through 2006. The rate of subscriber and revenue
growth may slow as the market continues to mature and competi-
tion increases.
Phone. We offer Comcast Digital Voice, our IP-enabled phone
service that provides unlimited local and domestic long-distance
calling and includes such features as Voice Mail, Caller ID and Call
Waiting. Comcast Digital Voice was available to 32 million homes
as of December 31, 2006. We expect that by the end of 2007
approximately 85% of our homes passed will have access to Com-
cast Digital Voice. In some areas, we provide our circuit-switched
local phone service. Subscribers to this service have access to a
full array of calling features and third-party long-distance services.
COMCAST DIGITAL VOICE SUBSCRIBERS
(in millions)
0.2
0.4
0.7
1.3
1.9
4Q063Q062Q061Q064Q05
Revenues increased in 2006 as a result of the increase in Comcast
Digital Voice subscribers, partially offset by the loss of approxi-
mately 300,000 circuit-switched subscribers. Our newly acquired
cable systems added approximately 156,000 phone subscribers
and contributed $40 million of our phone revenue growth for the
year ended December 31, 2006. The decrease in phone revenues
in 2005 from 2004 was primarily the result of a reduction in the
number of circuit-switched phone subscribers as we began the
deployment of Comcast Digital Voice. We expect the number of
phone subscribers will grow as we expand Comcast Digital Voice
to new markets in 2007. We expect the number of subscribers to
our circuit-switched local phone service to continue to decrease
in 2007 as our marketing efforts are now focused on Comcast
Digital Voice.