Comcast 2013 Annual Report Download - page 40

Table of Contents
for the retransmission of our broadcast television networks and stations’
content. Weak economic conditions have also in the past
reduced, and could continue to reduce, the performance of our home entertainment releases in our filmed entertainment business
and attendance and spending in our theme parks business. Weak economic conditions and turmoil in the global financial markets
may also impair the ability of third parties to satisfy their obligations to us. Further, any disruption in the global financial markets
may affect our ability to obtain financing on acceptable terms. If these weak economic conditions continue or deteriorate, our
businesses may be adversely affected.
A decline in advertising expenditures or changes in advertising markets could negatively impact our businesses.
Our cable communications, cable networks and broadcast television businesses derive substantial revenue from the sale of
advertising on a variety of platforms, and a decline in advertising expenditures could negatively impact our results of operations.
Declines can be caused by the economic prospects of specific advertisers or industries, by increased competition for the leisure
time of audiences and audience fragmentation, by the growing use of new technologies, or by the economy in general, any of which
may cause advertisers to alter their spending priorities based on these or other factors. In addition, advertisers’
willingness to
purchase advertising from us may be adversely affected by lower audience ratings, which some of our cable networks have
experienced and may continue to experience. Advertising sales and rates also are dependent on audience measurement and could
be negatively affected by changes in audience measurement methodologies. For example, newer methods of viewing content
(such as delayed viewing on DVRs or viewing content on computers, tablets or smartphones) might not be counted in audience
measurements or may generate less, if any, revenue than traditional distribution methods, which could have an adverse effect on
our advertising revenue. Further, natural disasters, wars, acts of terrorism, or other significant adverse news events could lead to a
reduction in advertising expenditures as a result of uninterrupted news coverage and general economic uncertainty. Reductions in
advertising expenditures could adversely affect our businesses.
NBCUniversal’
s success depends on consumer acceptance of its content, which is difficult to predict, and its businesses
may be adversely affected if its content fails to achieve sufficient consumer acceptance or the costs to create or acquire
content increase.
Most of NBCUniversal’
s businesses create and acquire media and entertainment content, the success of which depends
substantially on consumer tastes and preferences that change in often unpredictable ways. The success of these businesses
depends on our ability to consistently create, acquire, market and distribute cable network and broadcast television programming,
filmed entertainment, theme park attractions and other content that meet the changing preferences of the broad domestic and
international consumer market. We have invested, and will continue to invest, substantial amounts in our content, including in the
production of original content on our cable networks and broadcast television networks, in our films and for theme park attractions,
before learning the extent to which it would earn consumer acceptance.
We also obtain a significant portion of our content from third parties, such as movie studios, television production companies, sports
organizations and other suppliers. Competition for popular content, particularly for sports programming, is intense, and we may
have to increase the price we are willing to pay or be outbid by our competitors for popular content. Entering into or renewing
contracts for such programming rights or acquiring additional rights may result in significantly increased costs. Moreover,
particularly with respect to long-
term contracts for sports programming rights, our results of operations and cash flows over the term
of a contract depend on a number of factors, including the strength of the advertising market, our audience size, the ability to
impose surcharges on multichannel video providers for the content and the timing and amount of our rights payments. There can be
no assurance that revenue from these contracts will exceed our cost for the rights, as well as the other costs of producing and
distributing the programming. If our content does not achieve sufficient consumer acceptance, or if we cannot obtain or retain rights
to popular content on acceptable terms, or at all, our businesses may be adversely affected.
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Comcast 2013 Annual Report on Form 10
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