Comcast 2013 Annual Report Download - page 92

Table of Contents
Comcast Corporation
Cable Networks and Broadcast Television Segments
Our Cable Networks segment generates revenue primarily from the distribution of our cable network programming to multichannel
video providers, the sale of advertising and the licensing of our owned programming. Our Broadcast Television segment generates
revenue primarily from the sale of advertising, the licensing of our owned programming and the fees received under retransmission
consent agreements. We recognize revenue from distributors as programming is provided, generally under multiyear distribution
agreements. From time to time, the distribution agreements expire while programming continues to be provided to the distributor
based on interim arrangements while the parties negotiate new contract terms. Revenue recognition is generally limited to current
payments being made by the distributor, typically under the prior contract terms, until a new contract is negotiated, sometimes with
effective dates that affect prior periods. Differences between actual amounts determined upon resolution of negotiations and
amounts recorded during these interim arrangements are recorded in the period of resolution.
Advertising revenue for our Cable Networks and Broadcast Television segments is recognized in the period in which commercials
are aired or viewed. In some instances, we guarantee viewer ratings for the commercials. To the extent there is a shortfall in the
ratings that were guaranteed, a portion of the revenue is deferred until the shortfall is settled, primarily by providing additional
advertising time. We record revenue from the licensing of our owned programming when the content is available for use by the
licensee, and when certain other conditions are met. When license fees include advertising time, we recognize the advertising time
component of revenue when the advertisements are aired or viewed.
Filmed Entertainment Segment
Our Filmed Entertainment segment generates revenue primarily from the worldwide distribution of our owned and acquired films for
exhibition in movie theaters, the licensing of our owned and acquired films to cable, broadcast and premium networks and digital
distributors, and the sale of our owned and acquired films on both standard-definition DVDs and Blu-ray discs (together, “DVDs”
)
and through digital distributors. We also generate revenue from producing and licensing live stage plays and distributing filmed
entertainment produced by third parties. We recognize revenue from the distribution of films to movie theaters when the films are
exhibited. We record revenue from the licensing of a film when the film is available for use by the licensee, and when certain other
conditions are met. We recognize revenue from DVD sales, net of estimated returns and customer incentives, on the date that
DVDs are delivered to and made available for sale by retailers.
Theme Parks Segment
Our Theme Parks segment generates revenue primarily from theme park attendance and per capita spending at our Universal
theme parks in Orlando and Hollywood, as well as from licensing and other fees. We recognize revenue from advance theme park
ticket sales when the tickets are used. For annual passes, we recognize revenue on a straight-
line basis over the annual period
following the initial redemption date.
Cable Communications Programming Expenses
Cable Communications programming expenses are the fees we pay to license the programming we distribute to our video
customers. Programming is acquired for distribution to our video customers, generally under multiyear distribution agreements, with
rates typically based on the number of customers that receive the programming, adjusted for channel positioning and the extent of
distribution. From time to time these contracts expire and programming continues to be provided under interim arrangements while
the parties negotiate new contractual terms, sometimes with effective dates that affect prior periods. While payments are typically
made under the prior contract’
s terms, the amount of programming expenses recorded during these interim arrangements is based
on our estimates of the ultimate contractual terms expected to be negotiated. Differences between actual amounts determined
upon resolution of negotiations and amounts recorded during these interim arrangements are recorded in the period of resolution.
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Comcast 2013 Annual Report on Form 10
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