Comcast 2015 Annual Report Download - page 15

acquired by AT&T in 2015, and DISH Network offer video services to substantially all U.S. households. DBS
providers also have marketing arrangements with certain phone companies in which the DBS provider’s video
services are sold together with the phone company’s high-speed Internet and voice services.
Phone Companies
Certain phone companies, in particular AT&T and Verizon, have built and are continuing to build wireline fiber-
based networks that provide video, high-speed Internet and voice services, and in some cases have bundled
with wireless phone services, in substantial portions of our service areas. These and other phone companies
with fiber-based networks or digital subscriber line (“DSL”) technology, such as CenturyLink, also may market
video services provided by DBS providers in certain areas where they provide only high-speed Internet and
voice services. AT&T’s acquisition of DIRECTV in 2015 created an even larger competitor to our cable serv-
ices, which enables them to enhance their bundled offerings.
Other Wireline Providers
Federal law prohibits franchising authorities from unreasonably denying requests for additional franchises,
and it permits franchising authorities to operate cable systems. In addition to phone companies, various other
companies, including those that traditionally have not provided video services and have significant financial
resources, have obtained cable franchises and provide competing cable services. These and other cable
systems offer cable services in some areas where we hold franchises. We anticipate that facilities-based
competitors may emerge in other franchise areas that we serve.
Satellite Master Antenna Television Systems
Our video services also compete for customers with SMATV systems. SMATV system operators typically are
not subject to regulation in the same manner as local, franchised cable system operators. SMATV systems
offer to their subscribers both improved reception of local broadcast television stations and much of the pro-
gramming offered by our cable systems. Some SMATV system operators also offer bundled services to
residential and business subscribers.
Online Video Services
Our video services also compete with the services of online video distributors that offer Internet video stream-
ing and downloading of movies, television shows and other video programming. A number of companies also
have launched online video services that include both linear and on-demand programming and generally
involve the offering of smaller packages of programming networks directly to customers over the Internet at
prices lower than our traditional video service package offerings, while some programming providers also
offer programming directly to customers over the Internet. In most cases, these services charge no fee or a
lower fee than our traditional video packages. Consumer electronic companies that sell Internet-connected
TVs or gaming consoles that provide a user interface for searching television and other programming over the
Internet and offer links to various third-party Internet applications may also compete with our video services.
The success of these services could also adversely affect demand for other video services, such as our
expanded digital video packages, premium networks, and our DVR and On Demand services.
Other
Our cable services also may compete for customers with other companies, such as local broadcast television
stations that provide multiple channels of free over-the-air programming, as well as video rental services and
home entertainment and gaming products.
High-Speed Internet Services
We compete with a number of companies offering Internet services, many of which have substantial
resources, including:
• wireline phone companies
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