Comcast 2014 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. On February 12, 2014, we entered into an agreement and plan of merger (the
“merger agreement”) with Time Warner Cable Inc. (“Time Warner Cable”)
whereby Time Warner Cable will become our wholly
owned subsidiary (the “Time Warner Cable merger”).
On April 25, 2014, in connection with the merger agreement, we entered into
an agreement with Charter Communications, Inc. (“Charter”)
that, among other things, would result in a net disposition of
approximately 3.7 million video subscribers. Additional information about these transactions is presented below.
In 2014, our consolidated revenue and operating income were $68.8 billion and $14.9 billion, respectively.
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 and other services to small and medium-
sized businesses. As of
December 31, 2014, our cable systems served 22.4 million video customers, 22.0 million high-
speed Internet customers and
11.2 million voice customers, with 27.0 million total customer relationships, and passed more than 54 million homes and
businesses. Our Cable Communications segment generates revenue primarily from subscriptions to our cable services, which we
market individually and in bundled service packages, and from the sale of advertising. In 2014, our Cable Communications segment
generated 64% of our consolidated revenue and 79% of our operating income before depreciation and amortization.
Our Cable Communications segment offers 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, On Demand, our video on demand
service that allows customers to watch certain programs when they choose and provides the option to purchase or rent select
movies and television shows electronically, and an interactive, on-
screen program guide. Our video customers may also subscribe
to a higher level of video service, including our high-definition video (“HD”) and digital video recorder (“DVR”)
advanced services.
Our video customers have the ability to use our XFINITY online portal or our mobile apps to view certain live television
programming and On Demand content, browse program listings, and schedule, manage and watch DVR recordings.
Comcast 2014 Annual Report on Form 10
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K
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