Comcast 2012 Annual Report Download - page 60

Table of Contents
production and distribution costs related to our owned programming generally exceed the revenue generated from the initial network
license. The subsequent licensing of our owned television programming following the initial network license is critical to the financial
success of a television series.
Content licensing revenue decreased in 2012 and increased in 2011 primarily due to the impact of licensing agreements for our prior
season and library content that were entered into in 2011.
Other
We also generate revenue from the sale of our owned programming on DVDs and through digital distributors, such as iTunes, and
from fees for retransmission consent of our owned local broadcast television stations and associated fees received from our affiliated
local television stations. The sale of our owned programming is driven primarily by the popularity of our broadcast networks and
programming series and, therefore, fluctuates based on consumer spending and acceptance. Other revenue also includes
distribution revenue associated with our periodic broadcasts of the Olympic Games.
Other revenue increased in 2012 primarily due to $266 million of distribution revenue from multichannel video providers associated
with our broadcast of the 2012 London Olympics. Pro forma combined other revenue decreased in 2011 primarily due to the
absence of the 2010 Vancouver Olympics and a decline in DVD sales.
Broadcast Television Segment – Operating Costs and Expenses
Our Broadcast Television segment operating costs and expenses consist of programming and production expenses, advertising and
marketing expenses, and other operating and administrative expenses. Programming and production expenses relate to content
originating on our broadcast networks and owned local broadcast television stations and include the amortization of owned and
acquired programming costs, sports rights, direct production costs, residual and participation payments, production overhead, costs
associated with the distribution of our programming to third-party networks and other distribution platforms and on-
air talent costs.
Advertising and marketing expenses consist primarily of the costs associated with promoting our owned television programming, as
well as the marketing of DVDs and costs associated with digital media. Other operating and administrative expenses include
salaries, employee benefits, rent and other overhead expenses.
Operating costs and expenses increased in 2012 primarily due to the increase in programming rights and production costs of $1.3
billion associated with our broadcast of the 2012 London Olympics and the 2012 Super Bowl. Excluding the impact of these events,
operating costs and expenses increased 3% in 2012, primarily due to higher programming and production costs associated with our
continued investment in original programming. Pro forma combined operating costs and expenses decreased in 2011 primarily due
to $1 billion of programming and production expenses recognized in 2010 associated with the 2010 Vancouver Olympics. Excluding
the impact of the 2010 Vancouver Olympics, operating costs and expenses increased in 2011 primarily due to higher programming
and production expenses associated with a greater number of original primetime series in 2011.
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Comcast 2012 Annual Report on Form 10-
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