Comcast 2013 Annual Report Download - page 65

Table of Contents
Olympics. Excluding the impact of these events, advertising revenue increased 5% and 9% in 2013 and 2012, respectively,
primarily due to higher prices and volume of advertising units sold, which included the impact of an increase in political advertising
in 2012.
Content Licensing
Content licensing revenue is generated from the licensing of our owned programming in the United States and internationally,
including to cable and broadcast networks and digital distributors. The subsequent licensing of our owned programming series
following the initial network license is critical to their financial success as the production and distribution costs related to our owned
programming generally exceed the revenue generated from the initial network license.
Content licensing revenue decreased in 2013 and 2012 primarily due to the timing of licensing agreements.
Other
We also generate other revenue primarily from fees for retransmission consent of our owned broadcast television stations and
associated fees received from our affiliated local television stations, as well as from the sale of our owned programming on DVDs
and through online digital distributors. 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 decreased in 2013 and increased in 2012 primarily due to $266 million of distribution revenue from multichannel
video providers in 2012 associated with our broadcast of the London Olympics. The decrease in 2013 was partially offset by an
increase in fees received under our retransmission consent agreements.
Broadcast Television Segment – Operating Costs and Expenses
Programming and Production
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.
Programming and production costs decreased in 2013 and increased in 2012 primarily due to programming rights and production
costs of $1.3 billion associated with our broadcasts of the 2012 London Olympics and 2012 Super Bowl. Excluding the impact of
these events, programming and production costs increased in 2013 and 2012 primarily due to our continued investment in original
programming.
Other Operating and Administrative
Other operating and administrative expenses include salaries, employee benefits, rent and other overhead expenses.
Other operating and administrative expenses remained relatively flat in 2013. Other operating and administrative expenses
increased in 2012 primarily due to higher employee-related costs.
Advertising, Marketing and Promotion
Advertising, marketing and promotion expenses consist primarily of the costs associated with promoting our owned television
programming, as well as the marketing of DVDs and costs associated with our digital media properties.
Comcast 2013 Annual Report on Form 10
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