Comcast 2015 Annual Report Download - page 61

strong performance of our major films in 2013, including Despicable Me 2 and Fast and Furious 6. The
decrease in theatrical revenue in 2014 was partially offset by the performance of our 2014 releases, including
Lucy and Neighbors.
Content Licensing
Content licensing revenue is generated primarily from the licensing of our owned and acquired films to cable,
broadcast and premium networks, as well as to subscription video on demand services.
Content licensing revenue increased in 2015 and 2014 primarily due to the timing of when content was made
available under licensing agreements.
Home Entertainment
Home entertainment revenue is generated from the sale of our owned and acquired films on DVDs to retail
stores, rental kiosks and subscription by mail services, and in digital formats. Home entertainment revenue is
significantly affected by the timing and number of our releases and their acceptance by consumers. Release
dates are determined by several factors, including the timing of the exhibition of a film in movie theaters, holi-
day periods and the timing of competitive releases. The overall DVD market continues to experience declines
due to the maturation of the standard-definition DVD format, increasing shifts in consumer behavior toward
digital distribution services, and subscription rental services, all of which generate less revenue per trans-
action than DVD sales, as well as due to piracy.
Home entertainment revenue increased in 2015 primarily due to the strong performance of our 2015 releases,
including Minions and Jurassic World. Home entertainment revenue decreased in 2014 primarily due to the
strong performance of our 2013 releases, including Despicable Me 2 and Fast and Furious 6.
Other
We also generate revenue from producing and licensing live stage plays, from distributing filmed entertain-
ment produced by third parties, and from Fandango, our movie ticketing and entertainment business.
Other revenue increased in 2015 primarily due to an increase in revenue generated from Fandango. Other
revenue increased in 2014 primarily due to the inclusion of Fandango, which was previously presented in our
Cable Networks segment.
Filmed Entertainment Segment – Operating Costs and Expenses
Programming and Production Costs
Programming and production costs include the amortization of capitalized film production and acquisition
costs, residual and participation payments, and distribution expenses. Residual payments represent amounts
payable to certain of our employees, including freelance and temporary employees, who are represented by
labor unions or guilds and are based on post-theatrical revenue. Participation payments are primarily based
on film performance and represent contingent consideration payable to creative talent, third parties that have
entered into cofinancing agreements with us and other parties involved in the production of a film.
Programming and production costs increased in 2015 primarily due to higher amortization of film production
costs associated with our larger 2015 film slate, including Furious 7,Jurassic World and Minions. Program-
ming and production costs decreased in 2014 primarily due to lower amortization of film costs associated
with the lower costs of our 2014 film slate compared to 2013.
Other Operating and Administrative Costs and Expenses
Other operating and administrative costs and expenses include salaries, employee benefits, rent and other
overhead expenses.
Comcast 2015 Annual Report on Form 10-K 58