Comcast 2012 Annual Report Download - page 19

Table of Contents
Cable Services
Video Services
Program Carriage
The Communications Act and FCC regulations prohibit cable operators and other multichannel video providers from requiring a
financial interest in, or exclusive distribution rights for, any video programming network as a condition of carriage, or from
unreasonably restraining the ability of an unaffiliated programming network to compete fairly by discriminating against the network on
the basis of its non-
affiliation in the selection, terms or conditions for carriage. The FCC has adopted regulations that we believe
increase the likelihood of program carriage complaints and is considering proposals to further expand program carriage regulations
that may be disadvantageous to us. In July 2012, the FCC ruled against us in a program carriage complaint initiated by The Tennis
Channel. We have challenged that decision in court and were granted a stay of the FCC’s order pending the court’
s review. In
addition, the NBCUniversal Order prohibits discriminating against a network on the basis of its non-
affiliation in the selection, terms
or conditions for carriage, and requires that, if we place news and/or business news channels in a channel lineup “neighborhood,”
we
must place all independent news and business news channels in that neighborhood. Bloomberg Television filed a complaint at the
FCC invoking this condition. The FCC’
s Media Bureau ruled substantially in favor of Bloomberg but did not grant all of the relief
Bloomberg had requested. Both Comcast and Bloomberg have filed applications for review of the order by the full FCC. We have
been involved in other program carriage disputes at the FCC and may continue to be subject to program carriage complaints in the
future. Adverse decisions in disputes under the program carriage regulations or NBCUniversal Order conditions could negatively
affect our business.
Must-Carry/Retransmission Consent
Cable operators are currently required to carry, without compensation, the programming transmitted by most local commercial and
noncommercial broadcast television stations. Alternatively, local broadcast television stations may choose to negotiate with a cable
operator for retransmission consent, under which the station gives up its must-
carry right and instead seeks to negotiate a carriage
agreement with the cable operator. Such an agreement may involve payments to the station. We have recently begun paying certain
local broadcast television stations in exchange for their required consent for the retransmission of the stations’
broadcast
programming to our video services customers and expect to continue to be subject to increasing demands for payment and other
concessions from local broadcast television stations. For information on must-
carry and retransmission consent issues relating to our
broadcast television business, see “Broadcast Television” below and refer to the “Must-Carry/Retransmission Consent”
discussion
within that section.
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 services customers are not
subject to rate regulation. From time to time, Congress 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. Additionally, uniform pricing requirements under the Communications Act may
affect our ability to respond to increased competition through offers that aim to retain existing customers or regain those we have
lost.
Leased Access
The Communications Act requires a cable system to make available up to 15% of its channel capacity for commercial leased access
by third parties to provide programming that may compete with services offered directly by the cable operator. While we have not
been required to devote significant channel capacity to
Comcast 2012 Annual Report on Form 10-K
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