Comcast 2014 Annual Report Download - page 96

Table of Contents
Comcast Corporation
We recognize advertising revenue when the advertising is aired. In most cases, the available advertising units are sold by our sales
force. In some cases, we work with representation firms as an extension of our sales force to sell a portion of the advertising units
allocated to us. We also represent the advertising sales efforts of other multichannel video providers in some markets. Since we are
acting as the principal in these arrangements, we report the advertising that is sold as revenue and the fees paid to representation
firms and multichannel video providers as other operating and administrative expenses.
Revenue earned from other sources, such as our home security and automation services, is recognized when services are
provided or events occur. Under the terms of our cable franchise agreements, we are generally required to pay to the cable
franchising authority an amount based on our gross video revenue. We normally pass these fees through to our cable services
customers and classify the fees as a component of revenue with the corresponding costs included in other operating and
administrative expenses.
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, from the sale of advertising on our cable networks and related digital media properties, from the licensing of our
owned programming through distribution to subscription video on demand services and various other distribution platforms, and
from the sale of our owned programming electronically through digital distributors such as iTunes. Our Broadcast Television
segment generates revenue primarily from the sale of advertising on our broadcast networks, owned local broadcast television
stations and related digital media properties, from the licensing of our owned programming through various distribution platforms,
including to cable and broadcast networks and to subscription video on demand services, and from 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 units. 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 component of
revenue associated with the advertisements when they are aired or viewed.
Filmed Entertainment Segment
Our Filmed Entertainment segment generates revenue primarily from the worldwide distribution of our produced and acquired films
for exhibition in movie theaters, from the licensing of our owned and acquired films through various distribution platforms, and from
the sale of our owned and acquired films on standard-definition video discs and Blu-ray discs (together, “DVDs”)
and electronically
through digital distributors. Our Filmed Entertainment segment also generates revenue from producing and licensing live stage
plays, from the distribution of filmed entertainment produced by third parties, and from a movie ticketing and entertainment
business. 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.
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Comcast 2014 Annual Report on Form 10
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