Comcast 2012 Annual Report Download - page 25

Table of Contents
rulemaking. We currently offer our cable networks both on a bundled and, when requested, on a stand-
alone basis. Increased
regulatory requirements imposed on the manner in which we negotiate programming distribution agreements with multichannel video
providers may adversely affect our cable networks business.
Under the terms of the NBCUniversal Order and NBCUniversal Consent Decree, multichannel video providers can invoke
commercial arbitration for program access pursuant to conditions adopted in the NBCUniversal Order against our cable networks
and broadcast television networks, including our regional sports networks. In addition, under the NBCUniversal Order and
NBCUniversal Consent Decree, we are required to make certain of our cable network, broadcast television and filmed entertainment
programming available to bona fide online video distributors under certain conditions, and they may invoke commercial arbitration
pursuant to conditions adopted in the NBCUniversal Order and NBCUniversal Consent Decree to resolve disputes regarding the
availability of, and the terms and conditions of access to, such programming. For further discussion of these conditions, see
“Broadcast Television” below and refer to the “Must-Carry/Retransmission Consent” and “Internet Distribution”
discussions within that
section.
Children’s Programming
The Children’s Television Act (“CTA”)
and FCC regulations limit the amount and content of commercial matter that may be shown on
cable networks, broadcast networks and broadcast television stations during programming originally produced and broadcast
primarily for an audience of children under 13 years of age. FCC regulations also limit the display during children’
s programming on
cable or broadcast of Internet addresses of websites that contain or link to commercial material or that use program characters to sell
products. Similarly, FCC regulations prohibit the display of commercials during children’
s programming on cable or broadcast
networks that use program characters to sell products when the commercial is adjacent to children’
s programming in which the
characters appear. The FCC is currently considering whether to prohibit interactive advertising during children’
s television
programming. The NBCUniversal Order includes certain commitments and conditions related to children’
s television and advertising
directed at children, including commitments that we will not insert interactive advertising into children’
s television programming in any
of the advertising spots we control, either as a multichannel video provider or as the programmer, and that we will provide at least
$15 million worth of public service announcements on childhood obesity, FDA nutritional guidelines, digital literacy and parental
controls per year until 2016.
Broadcast Television
Licensing
The Communications Act permits the operation of local broadcast television stations only in accordance with a license issued by the
FCC upon a finding that the grant of the license would serve the public interest, convenience and necessity. The FCC grants
broadcast television station licenses for specific periods of time and, upon application, may renew the licenses for additional terms.
Under the Communications Act, broadcast television licenses may be granted for a maximum term of eight years. Generally, the
FCC renews broadcast licenses upon finding that the television station has served the public interest, convenience and necessity;
there have been no serious violations by the licensee of the Communications Act or FCC regulations; and there have been no
violations by the licensee of the Communications Act or FCC regulations, which, taken together, indicate a pattern of abuse.
In addition, CTA and FCC regulations require that the FCC consider in its review of broadcast television station license renewals
whether the station has served the educational and informational (
“E/I”) needs of children. Under the FCC’
s regulations, a station
licensee will be deemed to have met its obligation to serve the E/I needs of children if it has broadcast on its main program stream a
minimum of three hours per week of programming that has a significant purpose of serving the E/I needs of children under 17 years
of age. For broadcast television stations that multicast, FCC regulations include a similar standard whereby the amount
Comcast 2012 Annual Report on Form 10-K
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