Comcast 2012 Annual Report Download - page 39

Table of Contents
The loss of key management personnel or popular on-
air and creative talent could have an adverse effect on our
businesses.
We rely on certain key management personnel in the operation of our businesses. While we maintain long-
term and emergency
transition plans for key management personnel and believe we could either identify internal candidates or attract outside candidates
to fill any vacancy created by the loss of any key management personnel, the loss of one or more of our key management personnel
could have a negative impact on our business. In addition, our cable networks, broadcast television and filmed entertainment
businesses depend on the abilities and expertise of our on-air and creative talent. If we fail to retain our on-
air or creative talent, if the
costs to retain such talent increase materially, if we need to make significant termination payments, or if these individuals lose their
current appeal, our business could be adversely affected.
Sales of DVDs have been declining.
Several factors, including weak economic conditions, the maturation of the standard-
definition DVD format, piracy and intense
competition for consumer discretionary spending and leisure time, are contributing to an industry-
wide decline in DVD sales both in
the United States and internationally, which has had an adverse effect on our filmed entertainment business’
s results of operations.
DVD sales have also been adversely affected by an increasing shift by consumers toward subscription rental, discount rental kiosks
and digital forms of entertainment, such as video-on-
demand services, which generate less revenue per transaction than DVD sales.
A continued decline in our DVD sales volumes could have an adverse effect primarily on our filmed entertainment business.
We face risks arising from the outcome of various litigation matters.
We are subject to various legal proceedings and claims, including those referred to in “Legal Proceedings”
and those arising in the
ordinary course of business, including regulatory and administrative proceedings, claims and audits. While we do not expect the final
disposition of any of these litigation matters will have a material effect on our financial condition, an adverse outcome in one or more
of these matters could be material to our consolidated results of operations and cash flows for any one period, and any litigation
resulting from any such legal proceedings could be time-
consuming, costly and injure our reputation. Further, no assurance can be
given that any unfavorable outcome would not have an adverse effect on our businesses.
We face risks relating to doing business internationally that could adversely affect our businesses.
We, primarily through NBCUniversal, operate our businesses worldwide. There are risks inherent in doing business internationally,
including the current European debt crisis and other global financial market turmoil, economic volatility and the global economic
slowdown, currency exchange rate fluctuations and inflationary pressures, the requirements of local laws and customs relating to the
publication and distribution of content and the display and sale of advertising, import or export restrictions and changes in trade
regulations, difficulties in developing, staffing and managing foreign operations, issues related to occupational safety and adherence
to diverse local labor laws, and regulations and potentially adverse tax developments. In addition, doing business internationally is
subject to risks relating to political or social unrest, corruption and government regulation, including U.S. laws such as the Foreign
Corrupt Practices Act that impose stringent requirements on how we conduct our foreign operations. If these risks occur, our
businesses may be adversely affected.
Comcast 2012 Annual Report on Form 10-K
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