Comcast 2009 Annual Report Download - page 12

Table of Contents
Programming Segment
Our Programming segment consists primarily of our consolidated national programming networks. The table below presents a
summary of our consolidated national programming networks.
Programming Network
Approximate
U.S. Subscribers at
December 31, 2009
(in millions)
Description of Programming
E!
86
Entertainment
Golf Channel
74
Golf and golf-related
VERSUS
54
Sports and leisure
G4
59
Gamer lifestyle
Style
57
Lifestyle
7
Comcast 2009 Annual Report on Form 10-
K
Revenue for our programming networks is primarily
generated from monthly per subscriber license fees paid by
multichannel video providers that have typically entered into
multiyear contracts to distribute our programming networks,
the sale of advertising and the licensing of our programming
internationally. 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 acquire and retain
customers. Although we believe prospects of continued
carriage 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 programming 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 networks compete with other programming networks for
distribution and programming. In addition, our programming
networks compete for audience share with all other forms of
programming provided to viewers, including broadcast
networks, local television broadcast stations, pay and other
cable networks, home video, pay-per-view and video on
demand services, 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 our Internet businesses focused on entertainment,
information and communication, including Comcast.net,
Fancast, the Platform, Fandango, Plaxo and DailyCandy.
Comcast Spectacor owns two professional sports teams, the
Philadelphia 76ers and the Philadelphia Flyers, and a large,
multipurpose arena in Philadelphia, the Wachovia Center,
and provides facilities management services, including food
services, for sporting events, concerts and other events.
We also own noncontrolling interests in certain networks and
content providers, including FEARnet (33%), iN DEMAND
(54%), MGM (20%), Music Choice (12%), PBS KIDS Sprout
(40%), Pittsburgh Cable News Channel (30%), TV One
(34%), and SportsNet New York (8%). In addition, we have
noncontrolling interests in wireless-related companies,
including Clearwire Communications LLC (9%) and
SpectrumCo, LLC (64%).
Legislation and Regulation
Our Cable segment is subject to regulation by federal, state
and local governmental authorities under applicable laws and
regulations, as well as under agreements we enter into with
franchising authorities. The Communications Act of 1934, as
amended (the “Communications Act”), and FCC regulations
and policies affect significant aspects of our Cable segment,
including cable system ownership, video customer rates,
carriage of broadcast television stations, how we sell our
programming packages to customers, access to cable
system channels by franchising authorities and other parties,
the use of utility poles and conduits, and the offering of our
high-speed Internet and phone services. Our Programming
segment is also subject to some governmental regulation.
Federal regulation and regulatory scrutiny of our Cable and
Programming segments have increased in recent years, even
as the cable industry has become subject to increasing
competition from DBS providers, phone companies and
others for video, high-speed