Comcast 2008 Annual Report Download - page 5

Cable Services
We offer a variety of services over our cable systems, including
video, high-speed Internet and phone services (“cable services”)
and market these services individually and in packages. Sub-
stantially all of our customers are residential customers. We have
traditionally offered our video services to restaurants and hotels,
and we are now offering our cable services to small and medium-
sized businesses. Monthly subscription rates and related charges
vary according to the service selected and the type of equipment
the customer uses, and customers typically pay us on a monthly
basis. While residential customers may discontinue services at any
time, business customers may only discontinue their services in
accordance with the terms of their respective contracts, which
typically have one to three year terms.
We are focusing our technology initiatives on extending the
capacity and efficiency of our networks, increasing the capacity
and functionality of advanced set-top boxes, developing and
integrating cross-service features and functionality, and developing
interactive services.
Video Services
Our video service offerings range from a limited analog service to a
full digital service, as well as advanced services, including high-
definition television (“HDTV”) and digital video recorder (“DVR”). We
tailor our channel offerings for each system serving a particular
geographic area according to applicable local and federal regu-
latory requirements, programming preferences and demographics.
Our video services consist of a limited analog service, which gen-
erally includes access to between 20 and 40 channels of
programming, an expanded analog service, which generally
includes access to between 60 and 80 channels of programming,
and digital video services with access to over 250 channels,
depending on the level of service selected. Our video services
generally include programming provided by national and local
broadcast networks, national and regional cable networks, and
governmental and public access programming. Our digital video
services generally include access to multiple music channels; our
On Demand service; and an interactive, on-screen program guide.
We also offer some specialty tiers with sports, family or interna-
tional themes.
Our video customers may also subscribe to premium channel
programming. Premium channels include cable networks such as
HBO, Showtime, Starz and Cinemax, which generally offer, with-
out commercial interruption, movies, original programming, live
and taped sporting events, concerts and other special features.
Our On Demand service allows our digital video customers the
opportunity to choose from a selection of more than 10,000
standard-definition and high-definition programs over the course of
a month; start the programs at whatever time is convenient; and
pause, rewind and fast-forward the programs. The majority of our
On Demand content is available to our digital video customers at
no additional charge, with additional content available on a
pay-per-view basis. Digital videocustomerssubscribingtopre-
mium channels generally have access to the premium channel’s
On Demand content without additional fees. Our pay-per-view On
Demand service allows our video customers to order, for a sepa-
rate fee, individual new release and library movies and special-
event programs, such as professional boxing, professional
wrestling and concerts. We are continuing to expand the number
of On Demand choices, including HDTV programming.
Video customers may also subscribe to our advanced services,
HDTV and DVR. Our HDTV service provides our video customers
with improved, high-resolution picture quality, improved audio
quality and a wide-screen format. Our HDTV service offers our
digital video customers a broad selection of high-definition pro-
gramming, including most major broadcast networks, leading
national cable networks, premium channels and regional sports
networks. In addition, our On Demand service provides over 1,000
HDTV programming choices. We are continuing to expand our
HDTV programming choices. Our DVR service lets digital video
customers select, record and store programs and play them at
whatever time is convenient. Our DVR service also provides the
ability to pause and rewind “live” television.
High-Speed Internet Services
We offer high-speed Internet services with Internet access at
downstream speeds of up to 24 Mbps, depending on the service
selected, and up to 50 Mbps with the introduction of DOCSIS 3.0
technology, also referred to as Wideband, based on geographic
market availability. These services also include our interactive por-
tal, Comcast.net, which provides multiple e-mail addresses and
online storage, as well as a variety of content and value-added
features and enhancements that are designed to take advantage
of the speed of the Internet services we provide.
Phone Services
We offer a Voice over Internet Protocol (“VoIP”) digital phone serv-
ice that provides either usage-based or unlimited local and
domestic long-distance calling, including features such as voice
mail, caller ID and call waiting. We phased out substantially all of
our circuit-switched phone service in 2008.
Advertising
As part of our programming license agreements with programming
networks, we often receive an allocation of scheduled advertising
time that we may sell to local, regional and national advertisers. We
also coordinate the advertising sales efforts of other cable oper-
ators in some markets, and in some markets we operate
advertising interconnects. These interconnects establish a physical,
direct link between multiple cable systems and provide for the sale
of regional and national advertising across larger geographic areas
than could be provided by a single cable company. We are also in
the process of developing technology for interactive advertising.
3Comcast 2008 Annual Report on Form 10-K