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Part I
Item 1: Business
We are the nation’s leading provider of cable services, offering a
variety of entertainment, information and communications services
to residential and commercial customers. As of December 31, 2008,
our cable systems served approximately 24.2 million video custom-
ers, 14.9 million high-speed Internet customers and 6.5 million
phone customers and passed over 50.6 million homes in 39 states
and the District of Columbia. We report the results of these oper-
ations as our Cable segment, which generates approximately 95%
of our consolidated revenue. Our Cable segment also includes the
operations of our regional sports networks. Our other reportable
segment, Programming, consists primarily of our national
programming networks, including E!, Golf Channel, VERSUS, G4
and Style. We were incorporated under the laws of Pennsylvania in
December 2001. Through our predecessors, we have developed,
managed and operated cable systems since 1963.
Our other business interests include Comcast Interactive Media
and Comcast Spectacor. Comcast Interactive Media develops and
operates Comcast’s Internet businesses focused on entertain-
ment, information and communication, including Comcast.net,
Fancast, thePlatform, Fandango, Plaxo and DailyCandy. Comcast
Spectacor owns two professional sports teams and two large,
multipurpose arenas, and manages other facilities for sporting
events, concerts and other events. Comcast Interactive Media,
Comcast Spectacor and all other consolidated businesses not
included in our Cable or Programming segment are included in
“Corporate and Other” activities.
For financial and other information about our reportable segments,
refer to Item 8, Note 16 to our consolidated financial statements
included in this Annual Report on Form 10-K.
Available Information and Web Sites
Our phone number is (215) 286-1700, and our principal executive
offices are located at One Comcast Center, Philadelphia, PA
19103-2838. The public may read and copy any materials we file
with the SEC at the SEC’s Public Reference Room at 100 F Street,
NE, Washington, DC 20549. The public may obtain information on
the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. Our Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K and any
amendments to such reports filed with or furnished to the SEC
under Sections 13(a) or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), are available free of
charge on the SEC’s Web site at www.sec.gov and on our Web
site at www.comcast.com as soon as reasonably practicable after
such reports are electronically filed with the SEC. The information
posted on our Web site is not incorporated into our SEC filings.
General Developments of Our Businesses
The following are the more significant developments in our busi-
nesses in 2008:
• growth in consolidated revenue of 10.9% to approximately
$34.3 billion and an increase in consolidated operating income
of 20.7% to approximately $6.7 billion
• growth in Cable segment revenue of 10.7% to approximately
$32.4 billion and an increase in operating income before
depreciation and amortization of 10.5% to approximately $13.2
billion
• the addition of approximately 1.5 million digital video customers,
approximately 1.3 million high-speed Internet customers,
approximately 2.0 million digital phone customers and a
decrease of approximately 575,000 video customers (excluding
in each case customers obtained through acquisitions)
• a reduction in Cable segment capital expenditures of 7.5% to
approximately $5.5 billion
• the transition of more of our programming to digital transmission
rather than analog transmission in order to recapture bandwidth
that will allow us to continue to expand our service offerings
• the initial deployment of DOCSIS 3.0 high-speed Internet
technology, also referred to as Wideband
• the acquisition of cable systems serving Illinois and Indiana
(approximately 696,000 video customers), as a result of the
dissolution of Insight Midwest, LP (the “Insight transaction”), in
January 2008
• an investment as part of an investor group in a new entity
named Clearwire that is focusing on the deployment of a
nationwide 4G wireless network using its significant wireless
spectrum holdings and was formed through the combination of
the 4G wireless broadband businesses of Clearwire’s legal
predecessor and Sprint Nextel (“Sprint”); through related
agreements entered into in connection with our investment, we
will be able to offer wireless services utilizing Clearwire’s 4G and
certain of Sprint’s existing wireless networks
• the completion of various transactions, including the acquisition
of Internet-related businesses, which include Plaxo and Daily-
Candy, and the purchase of an additional ownership interest in
Comcast SportsNet Bay Area
• the repurchase of approximately 141 million shares of our Class A
common stock and Class A Special common stock for approx-
imately $2.8 billion under our share repurchase authorization
1Comcast 2008 Annual Report on Form 10-K