Full Description

Comcast Corporation, incorporated in December 2001, is a provider of cable services, offering a variety of entertainment, information and communications services to residential and commercial customers. As of December 31, 2008, the Company’s cable systems served approximately 24.2 million video customers, 14.9 million high-speed Internet customers and 6.5 million phone customers and passed over 50.6 million homes in 39 states and the District of Columbia. The Company operates in two segments: Cable and Programming. The Cable segment, which generates approximately 95% of the Company’s consolidated revenue, manages and operates cable systems in the United States. The Cable segment also includes the operations of its regional sports networks. The Programming segment consists primarily of its national programming networks, including E!, Golf Channel, VERSUS, G4 and Style. In January 2008, the Company acquired the cable systems serving Illinois and Indiana (approximately 696,000 video customers), as a result of the dissolution of Insight Midwest, L.P. In June 2009, the Company acquired from Hearst its 50% interest in New England Cable News (NECN). Comcast owns 100% of NECN.

Cable

The Company offers a variety of services over its cable systems, including video, high-speed Internet and phone services (cable services), and market these services individually and in packages. Its video service offerings range from a limited analog service to a full digital service, as well as advanced services, including high-definition television (HDTV) and digital video recorder (DVR). The Company’s video services consist of a limited analog service, which generally includes access to between 20 and 40 channels of programming, an expanded analog service, which generally includes access to between 60 and 80 channels of programming, and digital video services with access to over 250 channels, depending on the level of service selected. The video services generally include programming provided by national and local broadcast networks, national and regional cable networks, and governmental and public access programming. Its digital video services generally include access to multiple music channels, its On Demand service, and an interactive, on-screen program guide.

The Company offers high-speed Internet services with Internet access at downstream speeds of up to 24 megabits per second, depending on the service selected, and up to 50 megabits per second with the introduction of DOCSIS 3.0 technology, also referred to as Wideband, based on geographic market availability. These services also include its interactive portal, Comcast.net, which provides multiple e-mail addresses and online storage, as well as a variety of content and value-added features and enhancements. The Company offers a voice over Internet protocol (VoIP) digital phone service that provides either usage-based or unlimited local and domestic long-distance calling, including features, such as voice mail, caller identification (ID) and call waiting.

As part of its programming license agreements with programming networks, the Company receives an allocation of scheduled advertising time that it may sell to local, regional and national advertisers. It also coordinates the advertising sales efforts of other cable operators in some markets, and in some markets it operates advertising interconnects. The Company’s regional sports networks include Comcast SportsNet (Philadelphia), Comcast SportsNet Mid-Atlantic (Baltimore/Washington), Cable Sports Southeast, Comcast SportsNet Chicago, MountainWest Sports Network, Comcast SportsNet California (Sacramento), Comcast SportsNet New England (Boston), Comcast SportsNet Northwest (Portland) and Comcast SportsNet Bay Area (San Francisco). These networks generate revenue from monthly per subscriber license fees paid by multichannel video providers and through the sale of advertising time. The Company also generates revenue from its digital media center, installation services, commissions from electronic retailing networks and fees from other services.

Programming Segment

As of December 31, 2008, Comcast’ national programming networks included E!, which had approximately 85 million United States subscribers and included pop culture and entertainment-related programming; Golf Channel, which had approximately 73 million United States subscribers and included golf and golf-related programming; VERSUS, which had approximately 66 million United States subscribers and included sports and leisure programming; G4, which had approximately 57 million United States subscribers and included gamer lifestyle programming, and Style, which had 51 million United States subscribers and included lifestyle-related programming. It also owns interests in MGM (20%), iN DEMAND (51%), TV One (33%), PBS KIDS Sprout (40%) and FEARnet (33%). The Company’s revenue for its programming networks is primarily generated from the sale of advertising and from monthly per subscriber license fees paid by multichannel video providers that have entered into multiyear contracts to distribute its programming networks.

Other Businesses

The Company’s other business interests include Comcast Interactive Media and Comcast Spectacor. Comcast Interactive Media develops and operates Comcast’s Internet businesses focused on entertainment, information and communication, including Comcast.net, Fancast, thePlatform, Fandango, Plaxo and DailyCandy. Comcast Spectacor owns two professional sports teams and two large, multipurpose arenas, and manages other facilities for sporting events, concerts and other events. The Company also owns noncontrolling interests in certain networks and content providers, including MGM, iN DEMAND, TV One, PBS KIDS Sprout, FEARnet, New England Cable News, Pittsburgh Cable News Channel, Music Choice and SportsNet New York. In addition, it has noncontrolling interests in wireless-related companies, including Clearwire and SpectrumCo, LLC.

The Company competes with AOL, Earthlink, Microsoft, AT&T and Verizon.