Comcast 2011 Annual Report Download - page 17

scripts for films. Our filmed entertainment business also competes with the other major studios and other
producers of entertainment content for distribution of their content through various exhibition and distribution
outlets and on digital media platforms.
Theme Parks
Our theme parks business competes with other multi-park entertainment companies. We also compete with
other forms of entertainment, lodging, tourism and recreational activities. In order to maintain the competitive-
ness of our theme parks, we have invested and continue to invest in existing and new theme park attractions
and infrastructure. The investment required to introduce new attractions in our theme parks can be sig-
nificant.
Seasonality and Cyclicality
Each of our businesses is subject to seasonal and cyclical variations. See “Management’s Discussion and
Analysis of Financial Condition and Results of Operations – Segment Operating Results – Seasonality and
Cyclicality” for additional information.
Legislation and Regulation
The Communications Act of 1934, as amended (the “Communications Act”), and FCC regulations and poli-
cies affect significant aspects of our businesses, which are also subject to other regulation by federal, state,
local and foreign authorities under applicable laws and regulations, as well as under agreements we enter into
with franchising authorities. In addition, our businesses are subject to compliance with the terms of the FCC
Order approving the NBCUniversal transaction (the “NBCUniversal Order”) and a consent decree entered into
between us, the DOJ and five states (the “NBCUniversal Consent Decree”), which contain conditions and
commitments of varying duration, ranging from three to seven years. In addition, certain other aspects of the
NBCUniversal Consent Decree are subject to oversight by a federal district court until at least 2013. Legis-
lators and regulators at all levels of government frequently consider changing, and sometimes do change,
existing statutes, rules, regulations, or interpretations of existing statutes, rules or regulations, or prescribe
new ones, which may significantly affect our businesses. We are unable to predict any such changes, or how
any such changes will ultimately affect our businesses. The following paragraphs summarize material existing
and potential future legal and regulatory requirements affecting our businesses, although reference should be
made to the Communications Act, FCC regulations, the NBCUniversal Order, the NBCUniversal Consent
Decree and other legislation for further information.
Cable Services
Video Services
Pricing and Packaging
The Communications Act and FCC regulations limit the prices that cable operators may charge for basic
video service, equipment and installation. These rules do not apply to cable systems that the FCC determines
are subject to effective competition, or where franchising authorities have chosen not to regulate rates. As a
result, approximately 80% of our video customers are not subject to rate regulation. From time to time, Con-
gress and the FCC consider imposing new pricing or packaging regulations, including proposals that would
require cable operators to offer programming networks on an a la carte or themed-tier basis instead of, or in
addition to, our current packaged offerings. As discussed under “Legal Proceedings,” we and others are
currently involved in litigation that could force us and other multichannel video providers to offer programming
networks on an a la carte basis. Additionally, uniform pricing requirements under the Communications Act
15 Comcast 2011 Annual Report on Form 10-K