Comcast 2014 Annual Report Download - page 37

Table of Contents
Newer services in wireless Internet technology, such as 4G wireless broadband services and Wi-
Fi networks, and devices such as
wireless data cards, tablets and smartphones, and mobile wireless routers that connect to such devices, may compete with our
high-speed Internet services. Our voice services continue to face increased competition from wireless and Internet-
based phone
services as more consumers choose to replace their traditional wireline phone service with these phone services.
Newer products and services are also driving changes in consumer behavior as consumers seek more control over when, where
and how they consume content and access communications services. For example, the increased availability of DVRs, video on
demand services and cable, broadcast and other video programming on the Internet including high-
quality original video
programming that may be viewed only through subscription video on demand services, as well as increased access to media
through wireless devices, have the potential to reduce the viewing of content through traditional linear television distribution outlets.
Some content providers are also beginning to offer programming directly to consumers over the Internet for a nominal fee. Reduced
viewing of content through traditional distribution outlets could adversely affect demand for our cable communications’
video
services, the price and amount of advertising that advertisers are willing to purchase from us, the amount multichannel video
providers are willing to pay to NBCUniversal for content, and the levels of DVD and theatrical sales. These newer products and
services have contributed to an increased number of entertainment choices available to consumers, which have caused and may
continue to cause audience ratings pressure for our content and intensify the challenges posed by audience fragmentation.
The success of any of these ongoing and future developments or our failure to effectively anticipate or adapt to emerging
competitors or changes in consumer behavior, including among younger consumers, could have an adverse effect on our
competitive position, business and results of operations.
A decline in advertisers’ expenditures or changes in advertising markets could negatively impact our businesses.
Our cable communications, cable networks and broadcast television businesses compete for the sale of advertising time with other
television networks and stations, as well as with all other advertising platforms, such as radio, print and, increasingly, online media.
We derive substantial revenue from the sale of advertising, and a decline in expenditures by advertisers, including through
traditional linear television distribution models, 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. 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
methodologies and could be negatively affected if methodologies do not accurately reflect actual viewership levels. For example,
newer methods of viewing content (such as delayed viewing on DVRs or viewing content online) 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. Reductions in advertisers’ expenditures could adversely affect our revenue and businesses.
Our businesses depend on keeping pace with technological developments.
Our success is, to a large extent, dependent on our ability to acquire, develop, adopt and leverage new and existing technologies,
and our competitors’
use of certain types of technology and equipment may provide them with a competitive advantage. For
example, some companies and municipalities are building advanced fiber-
based networks that provide very fast Internet access
speeds, and wireless Internet technologies continue to evolve rapidly to allow for greater speed and reliability. We expect other
advances in communications technology to occur in the future. If we choose technology or equipment that is not as effective or
attractive
Comcast 2014 Annual Report on Form 10
-
K
32