Comcast 2015 Annual Report Download - page 29

Competition for the cable services we offer consists primarily of companies that typically offer features, pric-
ing and packaging for services comparable to our video, high-speed Internet and voice services, such as
DBS providers and phone companies with fiber-based networks. In 2015, AT&T, our largest phone company
competitor, acquired DirecTV, the nation’s largest DBS provider, which created an even larger competitor.
Wireless Internet services, 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 wire-
line phone service with these phone services.
There also continue to be new entrants, some with significant financial resources, that potentially may com-
pete with our cable services. In particular, Google, which has launched high-speed Internet and video
services in a limited number of areas, has announced plans to expand in more areas, including in some of our
significant markets. As Google expands to more areas, we expect it to become a meaningful wireline com-
petitor to our high-speed Internet and video services. In addition, some local municipalities are launching their
own fiber-based high-speed Internet services. Companies that provide subscription video on demand serv-
ices over the Internet or the ability to download video programming continue to gain consumer acceptance.
There can be no assurance that these or other newer entrants will not continue to launch similar services.
Our cable communications business continues to seek ways enhance the value of our cable services net-
work, such as by growing our high-speed Internet and business services businesses and by launching
additional services, such as our home security and automation services. There can be no assurance that we
can execute on these and other initiatives in a manner sufficient to grow or maintain our Cable Communica-
tions segment revenue, maintain our Cable Communications segment operating margin, or to compete
successfully in the future.
In addition, some of our phone company competitors have their own wireless facilities and may expand their
service offerings to include bundled wireless offerings. Because we do not have our own wireless facilities,
our inability to provide a competitive wireless product as part of our bundled cable services offering could
have an adverse effect on our competitive position, business and results of operations.
Each of NBCUniversal’s businesses also faces substantial and increasing competition from providers of sim-
ilar types of content, as well as from other forms of entertainment and recreational activities. NBCUniversal
must compete to obtain talent, programming and other resources required in operating these businesses.
All of our businesses’ ability to compete effectively depends on our perceived image and reputation among
our various constituencies, including our customers, consumers, advertisers, investors and government
authorities. Our ability to compete may be negatively affected if we do not provide our customers with a sat-
isfactory customer experience. There can be no assurance that we will be able to compete effectively against
existing or new competitors or that competition will not have an adverse effect on our businesses. For a more
detailed description of the competition facing our businesses, see Item 1: Business and refer to the
“Competition” discussion within that section.
Changes in consumer behavior driven by alternative methods for viewing content may adversely
affect our businesses and challenge existing business models.
Alternative products and services for the distribution, sale and viewing of content have been, and will likely con-
tinue to be, developed that further increase the number of competitors that all our businesses face and challenge
existing business models. These products and services are also driving changes in consumer behavior as consum-
ers seek more control over when, where and how they consume content and access communications services.
Comcast 2015 Annual Report on Form 10-K 26