Comcast 2008 Annual Report Download - page 9

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Phone Services
Our digital phone service competes against local phone compa-
nies, wireless phone service providers, competitive local exchange
carriers (“CLECs”) and other VoIP service providers. The local
phone companies have substantial capital and other resources,
longstanding customer relationships, and extensive existing facili-
ties and network rights-of-way. A few CLECs also have existing
local networks and significant financial resources.
Advertising
We compete for the sale of advertising against a wide variety of
media, including local broadcast stations, national broadcast
networks, national and regional programming networks, local radio
broadcast stations, local and regional newspapers, magazines and
Internet sites.
Programming Segment
The table below presents a summary of our most significant consolidated national programming networks as of December 31, 2008.
Programming Network
Approximate
U.S. Subscribers
(in millions) Description
E! 85 Pop culture and entertainment-related programming
Golf Channel 73 Golf and golf-related programming
VERSUS 66 Sports and leisure programming
G4 57 Gamer lifestyle programming
Style 51 Lifestyle-related programming
Revenue for our programming networks is primarily generated
from the sale of advertising and from monthly per subscriber
license fees paid by multichannel video providers that have typi-
cally entered into multiyear contracts to distribute our
programming networks. To obtain long-term contracts with
distributors, we may make cash payments, provide an initial period
in which license fee payments are waived or do both. Our
programming networks assist distributors with ongoing marketing
and promotional activities to retain existing customers and acquire
new customers. Although we believe prospects of continued car-
riage and marketing of our programming networks by larger
distributors are generally good, the loss of one or more of such
distributors could have a material adverse effect on our program-
ming networks.
Sources of Supply
Our programming networks often produce their own television
programs and broadcasts of live events. This often requires us to
acquire the rights to the content that is used in such productions
(such as rights to screenplays or sporting events). In other cases,
our programming networks license the cable telecast rights to
television programs produced by third parties.
Competition
Our programming networks compete with other television
programming services for distribution and programming. In addi-
tion, our programming networks compete for audience share with
all other forms of programming provided to viewers, including
broadcast networks; local broadcast stations; pay and other cable
networks; home video, pay-per-view and video on demand serv-
ices; and Internet sites. Finally, our programming networks
compete for advertising revenue with other national and local
media, including other television networks, television stations, radio
stations, newspapers, Internet sites and direct mail.
Other Businesses
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.
We also own noncontrolling interests in certain networks and
content providers, including MGM, iN DEMAND, TV One, PBS
KIDS Sprout, FEARnet, New England Cable News, Pittsburgh
Cable News Channel, Music Choice and SportsNet New York. In
addition, we have noncontrolling interests in wireless-related
companies, including Clearwire and SpectrumCo, LLC.
7Comcast 2008 Annual Report on Form 10-K