Comcast 2015 Annual Report Download - page 86

Comcast Corporation
these arrangements, we record the advertising that is sold in revenue and the fees paid to representation
firms and multichannel video providers in 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 program-
ming 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 various distribution platforms, from
the sale of our owned programming through digital distribution services such as iTunes, and from the pro-
gramming our cable production studio sells to third-party networks and subscription video on demand
services. 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, from the fees received under retransmission consent agreements and from the programming our
broadcast television production studio sells to third-party networks and subscription video on demand serv-
ices. 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 audience ratings for the commer-
cials. 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 recognize revenue from the
licensing of our owned programming and programming produced by our studios for third parties 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 pro-
duced 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 through digital distribution services. 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 Fandango, our movie ticketing and
entertainment business. We recognize revenue from the distribution of films to movie theaters when the films
are exhibited. We recognize 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.
83 Comcast 2015 Annual Report on Form 10-K