Comcast 2012 Annual Report Download - page 8

Table of Contents
Advertising
As part of our distribution agreements with cable networks, we generally receive an allocation of scheduled advertising time on the
cable networks that we may sell to local, regional and national advertisers. In most cases, the available advertising time is sold by
our sales force. In some cases, we work with representation firms as an extension of our sales force to sell a portion of the
advertising time allocated to us. We also coordinate the advertising sales efforts of other multichannel video providers in some
markets. In addition, we generate revenue from the sale of advertising online and on our On Demand service.
Other Revenue Sources
We receive revenue related to cable franchise and other regulatory fees. We also receive revenue related to our digital media center,
commissions from electronic retailing networks, and fees from other newer services, such as our home security and automation
services and expanded technical support services. Our cable franchise and regulatory fees represent the fees required to be paid to
federal, state and local authorities that we pass through to our customers. Under the terms of our franchise agreements, we are
generally required to pay to the cable franchising authority an amount based on our gross video revenue. Our home security and
automation offering provides home monitoring services to our customers as well as the ability to manage other functions within the
home, such as lighting and climate control, through XFINITY.net or our mobile apps for smartphones and tablets.
Technology
Our cable distribution system uses a hybrid fiber-
optic and coaxial cable network that we believe is sufficiently flexible and scalable
to support our future technology requirements. This network provides the two-
way transmissions that are essential to providing
interactive video services, such as On Demand, and high-
speed Internet and voice services. We are also leveraging our network to
develop and deliver innovative services to our customers efficiently and in an accelerated fashion.
We continue to develop and launch new technology initiatives, such as:
•
developing and launching next-
generation media and content delivery platforms, such as our new X1
platform, that use IP technology and our own cloud network servers to deliver video and advanced search
capabilities
•
enabling a variety of consumer electronic devices, including computers, tablets, smartphones and
Internet-
connected televisions, to search, control and display the programming and other content we
provide to our video customers
•
expanding the use of our network to launch new services, including providing services to medium-
sized
businesses and offering home security and automation services
•
developing wireless options to extend our services outside the home to provide mobility through the use of
apps for smartphones and tablets, deploying Wi-
Fi in portions of our service areas and marketing Verizon
Wireless services with our cable services offerings in select markets
•
deploying multiple tools to recapture bandwidth and optimize our network, including using advanced video
encoding and digital compression technologies
•
developing technology and software that allow customers to better identify problems with our cable
services and provide for better integration of our software with third-party software
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Comcast 2012 Annual Report on Form 10
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K