Comcast 2012 Annual Report Download - page 47

Table of Contents
Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations
Introduction and Overview
We are a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. In 2011, we
closed the NBCUniversal transaction in which we acquired control of the businesses of NBC Universal, Inc. (now named
NBCUniversal Media, LLC (“NBCUniversal”)).
We present our operations in the following five reportable business segments: Cable
Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. The Cable Networks, Broadcast
Television, Filmed Entertainment and Theme Parks segments comprise the NBCUniversal businesses and are collectively referred
to as the “NBCUniversal segments.”
Cable Communications
We are the nation’s largest provider of video, high-speed Internet and voice services (“cable services”)
to residential customers
under the XFINITY brand and we also provide these services to businesses. As of December 31, 2012, our cable systems served
22.0 million video customers, 19.4 million high-
speed Internet customers and 10.0 million voice customers and passed more than
53 million homes and businesses. Our Cable Communications segment generates revenue primarily from subscriptions to our cable
services, which we market individually and in packages, and from the sale of advertising. In 2012, our Cable Communications
segment generated 63% of our consolidated revenue and more than 80% of our operating income before depreciation and
amortization.
Our cable systems allow us to deliver video, high-
speed Internet and voice services to residential customers and to small and
medium-
sized businesses. We offer a broad variety of video services with access to hundreds of channels, including premium
networks, such as HBO, Showtime, Starz and Cinemax, pay-per-view channels, as well as On Demand, our video-on-
demand
service, and an interactive, on-
screen program guide. Our video customers may also subscribe to a higher level of video service,
including our HD video and DVR services. Our video customers also have the ability to use XFINITY.net or our mobile apps for
smartphones and tablets to view certain live television programming and some of our On Demand content, browse program listings,
and, in select markets, schedule and manage DVR recordings online.
Our high-
speed Internet services generally provide Internet access at downstream speeds of up to 105 Mbps, subject to geographic
market availability, and we also have introduced speeds of up to 305 Mbps in limited markets. Our high-
speed Internet service for
business customers also includes a website hosting service and an interactive tool that allows customers to share, coordinate and
store documents online.
Our voice services provide local and long-
distance calling and other features. These features, as well as additional features such as
hosted voice services using cloud network servers, a business directory listing and the added capacity for multiple phone lines are
made available to our business voice customers. For our medium-
sized business customers, we also offer metro Ethernet network
services and cellular backhaul services.
The majority of our Cable Communications segment revenue is generated from subscriptions to our cable services. Customers are
typically billed in advance on a monthly basis based on the services and features they receive and the type of equipment they use.
Residential customers may generally discontinue service at any time, while business customers may only discontinue service in
accordance with the terms of their contracts, which typically have 2 to 5 year terms.
Comcast 2012 Annual Report on Form 10-K
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