Comcast 2013 Annual Report Download - page 51

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. We present our
operations for Comcast Cable in one reportable business segment, referred to as Cable Communications, and our operations for
NBCUniversal in four reportable business segments.
Cable Communications Segment
Comcast Cable is 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 similar services to small and medium-
sized businesses. As of
December 31, 2013, our cable systems served 21.7 million video customers, 20.7 million high-
speed Internet customers and
10.7 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 2013, our Cable Communications segment generated 65% of our consolidated revenue and 80% of our
operating income before depreciation and amortization.
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 have the ability to use XFINITY TV online 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 schedule and manage
DVR recordings online.
Our high-
speed Internet services generally provide Internet access at downstream speeds of up to 105 Mbps, and we also have
introduced downstream speeds of up to 505 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. For our business voice customers, we also offer
additional features such as hosted voice services that use cloud network servers, a business directory listing and the added
capacity for multiple phone lines.
In addition to the video, high-speed Internet and voice services that we offer to small and medium-
sized business customers, we
offer Ethernet network services to our medium-
sized business customers that connect multiple locations. We also provide cellular
backhaul services to mobile network operators to help our customers manage network bandwidth.
We also sell advertising, under the Spotlight brand, that we receive through our distribution agreements with cable networks. We
generally receive an allocation of scheduled advertising time on cable networks that we sell to local, regional and national
advertisers.
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 2013 Annual Report on Form 10
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K
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