Comcast 2014 Annual Report Download - page 56

Table of Contents
in all of our service areas, and phone companies with fiber-
based networks, which overlap approximately 55% of our service areas
and are continuing to expand their fiber-based networks. Our high-
speed Internet services primarily compete with phone companies
with fiber
-based networks, which overlap approximately 60% of our service areas and also are continuing to expand their fiber-
based networks. Many of these competitors offer features, pricing and packaging for these services, individually and in bundles,
comparable to what we offer. In May 2014, AT&T, our largest phone company competitor, announced its intention to acquire
DirecTV, the nation’
s largest DBS provider. If completed, this transaction will create an even larger competitor for our cable services
that will have the ability to expand its cable service offerings to include bundled wireless offerings.
There also continue to be new companies, some with significant financial resources, that potentially may compete on a larger scale
with some or all of our cable services. For example, companies continue to emerge that provide Internet streaming and
downloading of video programming, some of which charge a nominal or no fee, and Google is providing high-
speed Internet and
video services in a limited number of areas in which we operate and recently announced plans to expand into additional
geographical areas. Moreover, wireless technology, such as 3G and 4G wireless broadband services and Wi-
Fi networks, may
compete with our video and high-
speed Internet services, and our voice services are facing increased competition as customers
replace landline phones with mobile phones and Internet-based phone services such as Skype.
Each of NBCUniversal’
s businesses also faces substantial and increasing competition from providers of similar types of content, as
well as from other forms of entertainment and recreational activities. NBCUniversal also must compete to obtain talent,
programming and other resources required in operating these businesses.
Technological changes are further intensifying and complicating the competitive landscape for all of our businesses by challenging
existing business models and affecting consumer behavior. Services and devices that enable online digital distribution of movies,
television shows, and other cable and broadcast video programming continue to gain consumer acceptance and evolve, including
some services that charge a nominal or no fee for such programming. A number of companies have announced plans to launch
online video services that will reportedly involve both linear and on-
demand programming, and one traditional provider of cable
services has begun to offer smaller packages of programming networks directly to customers over the Internet at prices lower than
our traditional cable service package offerings. These services and devices may negatively affect demand for our video services, as
well as demand for content from our cable networks, broadcast television and filmed entertainment businesses, as the number of
entertainment choices available to consumers increases and the challenges posed by audience fragmentation intensify and
audience ratings are pressured. In addition, delayed viewing and advertising skipping have become more common as the
penetration of DVRs and similar products has increased and as content has become increasingly available via video on demand
services and Internet sources, which may have a negative impact on our advertising revenue.
In our Cable Communications segment, we believe that adding more content and delivering it through an increasing variety of
platforms will assist in attracting and retaining customers for our cable services. To further enhance our video and high-
speed
Internet services, we continue to develop and launch new technology initiatives, such as our X1 platform and Cloud DVR
technology, and deploy wireless gateway devices. In our NBCUniversal segments, to compete for consumers of our content and for
customers at our theme parks, we have invested, and will continue to invest, substantial amounts in acquiring content and
producing original content for our cable and broadcast television networks and our owned local broadcast television stations,
including the acquisition of sports rights. We will also continue to invest in our film productions and in the development of new
theme park attractions.
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Comcast 2014 Annual Report on Form 10
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K