Comcast Corporation operates as a global media and technology company.
The company operates through three primary businesses: Comcast Cable (Comcast Cable Communications, LLC and its consolidated subsidiaries), NBCUniversal (NBCUniversal Media, LLC and its consolidated subsidiaries), and Sky (Sky Limited and its consolidated subsidiaries).
The company presents its operations for Comcast Cable in one segment, referred to as Cable Communications; NBCUniversal in three segments: Media, Studios and Theme Parks (collectively, the ‘NBCUniversal segment’); and Sky in one segment.
Comcast Cable business
This business operates through Cable Communications segment.
Cable Communications segment
This segment offers broadband, video, voice, wireless, and other services in the United States individually and as bundled services at a discounted rate over its cable distribution system to residential and business customers. Revenue is generated primarily from residential and business customers that subscribe to the company’s services and from the sale of advertising. The company aims to meet the needs of various segments of its residential customer base by offering multiple levels within each of its stand-alone and bundled services. Its business services offerings are tailored to meet the needs of various segments of the company’s business customer base, ranging from broadband services for small business locations to bundled services and solutions designed to meet the needs of medium-sized customers and larger enterprises.
The company offers broadband services over its hybrid fiber-optic and coaxial cable network with downstream speeds up to over a gigabit per second (Gbps) across nearly the company’s entire footprint and fiber-based speeds that range up to 3 Gbps, and it continue to evolve and enhance the company’s network and plan to leverage DOCSIS 4.0 technology to begin deploying multigigabit symmetrical speeds in the future.
The company also offers wireless gateways to customers that combine an internet modem with a Wi-Fi router to deliver reliable internet speeds and enhanced coverage through an in-and-out-of-home Wi-Fi network, as well as xFi Pod plug-in devices that extend a customer’s in-home Wi-Fi coverage. Customers with wireless gateways may also personalize and manage their Wi-Fi network and connected home, and access advanced security technology and other features, with the company’s xFi whole-home application and online portal. Broadband customers have access to the company’s expanding network of secure residential, outdoor and business Wi-Fi hotspots nationwide. As part of the company’s low-income broadband adoption program, it also offers qualifying customers the company’s Internet Essentials service, and beginning at the end of 2021 Internet Essential Plus, which has downstream speeds of up to 50 megabits per second (Mbps) and 100 Mbps, respectively.
Broadband customers that prefer consuming content over the internet rather than linear cable television are eligible to receive the company’s Flex streaming device for no additional charge, which includes integrated search functionality and a voice-activated remote control. Flex also provides access to and the integration of streaming content from Peacock’s premium tier; certain third-party internet-based apps providing content and music, such as direct-to-consumer streaming services (DTC streaming service) Disney+ and Netflix; and certain pay-per-view and video on demand content available over the internet. The company earn commission revenue from the sale of certain third-party DTC streaming services.
The company offers a broad variety of video services, primarily through its X1 platform, which provides integrated search functionality and a voice-activated remote control. The integrated features provided by X1 operate across content in customers’ cable video services packages and content from internet-based streaming services that customers may access in a manner similar to its Flex streaming device. The company’s video packages typically range from a basic cable service with access to between 20 and 65 channels to a full service with access to more than 300 channels. Customers may view programming live, record live programming through its digital video recorder (DVR) service or access its video on demand services with extensive programming choices, such as television series, movies and special-events programming that are available for free or to rent or own digitally. These viewing options are also available through the company’s mobile app and online portal.
The company tailors its video packages based on particular programming preferences, demographics and geographic areas in accordance with applicable local and federal regulatory requirements, with programming generally inclusive of national broadcast networks, local broadcast stations, national and regional cable networks, government and public access programming, and premium channel subscriptions, such as HBO and Showtime. The company also offers packages with extensive amounts of foreign-language programming and other specialty tiers of programming.
The company offers voice services using interconnected Voice over Internet Protocol (VoIP) technology that provide either unlimited or usage-based local and domestic long-distance calling, as well as options for international calling plans, voicemail, readable voicemail, nuisance call blocking tools and various other features.
The company offers wireless services for handsets, tablets and smart watches using mobile virtual network operator (MVNO) rights over Verizon’s wireless network, including its 5G technology and the company’s existing network of secure residential, outdoor and business Wi-Fi hotspots. Wireless services are only offered as part of its bundled service offerings to residential customers that subscribe to the company’s broadband services and to eligible small business customers on similar terms. Customers may activate multiple lines per account and choose to pay for services on an unlimited data plan, shared data plans, or per gigabyte of data used. Customers may either bring their own device or purchase devices from the company with the option to pay upfront or finance the purchase interest-free over 24 months.
Business services customers may subscribe to a variety of products and services, including broadband services over the company’s hybrid fiber-optic and coaxial cable network with downstream speeds up to a gigabit per second across nearly its entire footprint and fiber-based speeds that range up to 100 Gbps. The company’s service offerings for small business locations primarily include broadband services, as well as voice and video services, that are similar to those provided to its residential customers, cloud-based cybersecurity services, wireless backup connectivity, advanced Wi-Fi solutions, video monitoring services and cloud-based services for file sharing, online backup and web conferencing, among other features. The company also offers Ethernet network services, which connect multiple locations and provide higher downstream and upstream speed options to medium-sized customers and larger enterprises, and advanced voice services, as well as video solutions for hotels and other large venues. In addition, it provides cellular backhaul services to mobile network operators to help manage their network bandwidth.
The company’s business services offerings for medium-sized and enterprise customers also include a software-defined networking product, and larger enterprises may also receive support services related to Wi-Fi networks, router management, network security, business continuity risks and other services. These services are primarily provided to Fortune 1000 companies and other large enterprises with multiple locations both within and outside of its cable distribution footprint, where the company provides coverage outside of its service areas through agreements with other companies to use their networks.
The company receives an allocation of scheduled advertising time that the company’s advertising business sells to local, regional and national advertisers as part of its distribution agreements with cable networks. The company also generates revenue from the sale of advertising on its digital platforms. In addition, the company’s advertising business represents the advertising sales efforts of other multichannel video providers in some markets and offers additional technology, tools, data-driven services and marketplace solutions to customers in the media industry to facilitate advertisers more effectively engaging with their target audiences.
The company’s security and automation services provide home monitoring services and the ability to manage other functions within the home, such as lighting and room temperature, through its online portal, mobile apps and the X1 platform. The company also licenses its technology platforms to other multichannel video providers.
Network and Technology
The company’s Cable Communications cable distribution system uses a hybrid fiber-optic and coaxial cable network that supports the company’s future technology requirements and enables it to continue to grow capacity and capabilities over time. This network provides the two-way transmissions that are essential to providing broadband services, interactive video services (such as integrated search functionality, On Demand and DVR), voice services, and security and automation services. Leveraging DOCSIS 3.1 technology, Cable Communications deploys broadband services with downstream speeds for residential customers up to over a gigabit per second across nearly the company’s entire footprint. The company continues to evolve and enhance its network and plan to leverage DOCSIS 4.0 technology to begin deploying multigigabit symmetrical speeds in the future. Additionally, Cable Communications has been automating many core network functions in order to expand capacity and increase operating efficiency and to identify and fix network issues before they affect its customers.
Cable Communications continues to focus on technology initiatives to design, develop and deploy next-generation media and content delivery platforms, such as the X1 and Flex platforms and cloud DVR technology that use Internet Protocol (IP) technology and the company’s own cloud network servers to deliver video and advanced search capability. These platforms are based on the company’s global technology platform, which integrates linear television networks, certain owned and third-party DTC streaming services and other internet-based apps, and on demand content in one unified experience with voice-activated remote-control search and interactive features. Cable Communications also pursues technology initiatives related to broadband services that leverage its global technology platform, providing customers with in-and-out-of-home Wi-Fi, the ability to manage their Wi-Fi network and connected home with its xFi whole-home application and online portal, advanced security technology and other features.
Sources of Supply and Other Operations
To offer video services, Cable Communications licenses substantial amounts of programming from cable and broadcast networks, as well as from local broadcast television stations. The fees associated with these programming distribution agreements are generally based on the number of subscribers who are able to watch the programming and the platforms on which the content is provided. The company seeks to include in distribution agreements the rights to offer such programming through multiple delivery platforms, such as through its On Demand service, online portal, mobile apps and Flex.
For wireless services, the company has an MVNO agreement that allows it to offer services using Verizon’s wireless network and the company purchases from a limited number of suppliers a significant number of wireless handsets, tablets and smart watches that it sells to wireless customers.
Cable Communications purchases from a limited number of suppliers a significant amount of customer premise equipment, including wireless gateways and set-top boxes, network equipment and services to provide services to residential and business customers.
Cable Communications uses two primary vendors to provide customer billing for the company’s residential and business customers.
Cable Communications offers services directly to residential and business customers through customer service teams, retail stores, customer service centers, websites, door-to-door selling, telemarketing and third-party outlets, as well as through advertising via direct mail, television and the internet. The company’s customer service teams also provide 24/7 call-answering capability, telemarketing and other services. Its technical services group performs various tasks, including installations, plant maintenance and upgrades to the company’s cable distribution system. Customers can use self-service help and support and perform self-installations for certain services.
NBCUniversal is one of the world’s leading media and entertainment companies that develops, produces, and distributes entertainment, news and information, sports, and other content for global audiences; and owns and operates theme parks in the United States and Asia.
NBCUniversal’s television and streaming platforms primarily comprise the company’s Media segment, including national, regional and international cable networks; NBC and Telemundo broadcast networks and owned local broadcast television stations; and Peacock, the company’s DTC streaming service.
NBCUniversal distributes a wide variety of content to appeal to consumers with varying preferences across demographics and geographies through the company’s portfolio of television networks and streaming platforms. This content includes programming owned by NBCUniversal and by third parties who license it to the company for distribution.
Media segment generates revenue primarily from the sale of advertising on its television networks, Peacock and digital properties, and from the distribution of the company’s television and streaming platform programming; and other revenue from content licensing and from various digital properties.
The company markets and distributes cable network programming in the United States and internationally to multichannel video providers, including both traditional providers of linear programming and virtual providers who provide streaming services for linear programming. It also receives fees from multichannel video providers under NBC and Telemundo retransmission consent agreements and associated fees from NBC-affiliated and Telemundo-affiliated local broadcast television stations. The company’s programming distribution agreements are generally multiyear agreements with revenue based on the number of subscribers receiving the programming and the fees charged per subscriber. Certain Peacock subscribers are also charged a monthly subscription fee.
The company operates a diversified portfolio of cable networks that provide a variety of entertainment, news and information, and sports content.
The company’s regional sports and news networks together serve more than 21 million households across the United States, including in markets, such as Baltimore/Washington, Boston, Chicago, Philadelphia, Sacramento and San Francisco.
The NBC network features original entertainment, news and sports programming that reaches viewers in virtually all U.S. television households through more than 200 affiliated stations across the United States, including its 11 owned NBC local broadcast television stations. As of December 31, 2021, the NBC owned local broadcast stations included stations in 8 of the top 10 general markets and collectively reached approximately 35 million U.S. television households, representing approximately 28% of the U.S. television households. In addition to broadcasting the NBC network’s national programming, local broadcast stations deliver local news, weather and investigative, and consumer reporting across multiple platforms.
The Telemundo network, a Spanish-language broadcast network, features original entertainment, news, live specials and sports programming that reaches viewers in over 90% of all U.S. Hispanic television households through 82 affiliated stations, including the company’s 30 owned Telemundo local broadcast television stations and its national feed. As of December 31, 2021, the Telemundo owned local broadcast stations included stations in all of the top 20 U.S. Hispanic markets and collectively reached approximately 73% of the U.S. Hispanic television households. In addition to broadcasting the Telemundo network’s national programming, local broadcast stations deliver local news, weather and investigative, and consumer reporting across multiple platforms. It also owns an independent Telemundo station serving the Puerto Rico television market.
Peacock, a premium DTC streaming service that features NBCUniversal content, including exclusive Peacock originals, NBC and Telemundo shows, news, late-night comedy, live sports and a library of television shows and movies that provides customers access to tens of thousands of hours of programming. Customers have the choice of three tiers of service, including a free, ad-supported version; a subscription based, ad-supported version with access to all Peacock content; and a similar subscription-based, ad-free version. The Peacock app is available to consumers over the internet directly and through distributors and other platforms in the United States, including to Cable Communications X1 and Flex customers.
The company’s television and streaming platforms include content licensed from its Studios segment and from third parties, as well as content produced by Media segment businesses, such as live news and sports programming and certain original programming, including late-night comedy for NBC and original telenovelas for Telemundo.
The company has various multiyear contractual commitments for the licensing of programming, including contracts related to broadcast rights for sporting events. It generally seeks to include in the company’s sports rights agreements the rights to distribute content on one or more of its television networks and on digital platforms, including Peacock.
The company’s most significant sports rights commitments include the following:
NFL: Agreements to produce and broadcast a specified number of regular season and playoff games, including Sunday Night Football on the company’s NBC network and four Super Bowl games, the next of which is in February 2022, through the 2033-34 season, with a termination right available to the NFL after the 2029-30 season. These agreements include certain other rights, including streaming rights, additional exclusive games on Peacock and the Spanish-language U.S. broadcast rights for certain NFL games, which are aired on Telemundo.
Olympics: The U.S. broadcast rights for the summer and winter Olympic Games through 2032 with programming aired across the NBC network, multiple cable networks and on Peacock.
The company also has the U.S. broadcast rights to PGA TOUR and other golf events through 2031, Worldwide Wrestling Entertainment (WWE) events through 2026, certain NASCAR events through 2024 and the Spanish-language U.S. broadcast rights to FIFA World Cup soccer games through 2026, as well as local broadcast rights for certain professional sports teams through its regional sports networks with terms ending between 2024 and 2040.
NBCUniversal’s film and television studio production and distribution operations primarily comprise the company’s Studios segment.
Revenue is generated primarily from licensing its owned film and television content in the United States and internationally to cable, broadcast and premium networks and DTC streaming service providers, as well as through video on demand and pay-per-view services provided by multichannel video providers and over-the-top (OTT) service providers; from the worldwide distribution of its produced and acquired films for exhibition in movie theaters; and from the sale of owned and acquired content on DVDs and through digital distribution services. The company also generates revenue from the production and licensing of live stage plays.
The company’s film studios develop, produce, acquire, market and distribute filmed entertainment worldwide. Its films are produced primarily under various names, including Universal Pictures, Illumination, DreamWorks Animation, Focus Features, and Working Title.
The majority of the company’s films are initially distributed for exhibition in movie theaters, while other titles are produced and distributed direct-to-video. Certain theatrical titles are also made available for viewing on demand following a shortened theatrical release window. After their initial release, the company sells and licenses films globally through various methods. The company licenses films, including titles following the theatrical release window and selections from its film library, to cable, broadcast and premium networks; DTC streaming service providers; and video on demand and pay-per-view services provided by multichannel video providers, including the Cable Communications and Sky segments. It also distributed films globally by selling them on DVDs and through digital distribution services.
Theatrical revenue is significantly affected by the timing of each release and the number of films the company distributes, their acceptance by audiences, the number of exhibition screens, ticket prices and the percentage of ticket sale retention by the exhibitors and the popularity of competing films at the time its films are released. Revenue from the sale of content on DVDs and through digital distribution services is significantly affected by the timing and number of the company’s theatrical releases and the popularity of its content, as well as the timing of release dates.
The company develops and produces films both alone and jointly with other studios or production companies, as well as with other entities. Films are markets and distributes worldwide primarily through NBCUniversal’s marketing and distribution operations. It also acquires distribution rights to films produced by third parties, which may be limited to particular geographic regions, specific forms of media or certain periods of time.
The company’s film studios have entered into, and may continue to enter into, film cofinancing arrangements with third parties, including both studio and nonstudio entities, to jointly finance or distribute certain of its film productions. These arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor.
The company’s television studios develop and produce original content, including scripted and unscripted television series. NBCUniversal’s television studios, branded as the Universal Studio Group, produces content under the various names, including Universal Television, Universal Content Productions, Universal Television Alternative Studio, and Universal International Studios.
The company’s original content is primarily licenses initially to cable, broadcast and premium networks, as well as to DTC streaming service providers, including its Media segment. It also licenses content after its initial airing and licenses older television programs from the company’s programming library, as well as sells owned and acquired content globally on DVDs and through digital distribution services.
Theme Parks segment
The Theme Parks segment primarily comprises the following Universal theme parks:
Universal Orlando Resort, which includes two theme parks, Universal Studios Florida and Islands of Adventure; and the company’s water park, Volcano Bay, all of which are located in Orlando Florida. Universal Orlando also includes Universal CityWalk Orlando, a dining, retail and entertainment complex; and features on-site themed hotels in which the company owns a noncontrolling interest. The company is developing an additional theme park at Universal Orlando named Universal’s Epic Universe.
Universal Studios Hollywood, which includes a theme park located in Hollywood, California and Universal CityWalk Hollywood.
Universal Studios Japan, which includes a theme park located in Osaka, Japan.
Universal Beijing Resort, which includes a theme park located in Beijing, China, Universal Studios Beijing, as well as Universal CityWalk Beijing and on-site themed hotels. Universal Beijing Resort is owned by the company and a consortium of Chinese state-owned companies.
Revenue is generated primarily from guest spending at its theme parks, including ticket sales and in-park spending on food, beverages and merchandise; and from the company’s consumer products business. Revenue for its theme parks generally depends on the overall environment for travel and tourism, including consumer spending on travel and other recreational activities. The company also licenses the right to use the Universal Studios brand name and other intellectual property and provide other services to third parties, including the party that owns and operates the Universal Studios Singapore theme park on Sentosa Island, Singapore.
The themed elements in its rides, attractions, and merchandising are based on intellectual property in the company’s Studios and Media segments and intellectual property licensed from third parties under long-term agreements.
Sky is one of Europe’s leading entertainment companies operating in six territories, including three of the largest pay television markets in Western Europe, including the United Kingdom, Italy and Germany. The majority of revenue is derived from Sky’s direct-to-consumer business, which has 23.0 million customer relationships, and primarily involves the distribution of a wide array of video channels to both residential and business customers.
Sky also offers broadband, voice and wireless services individually and as bundled services in select countries. Sky owns a diverse portfolio of pay television channels that feature entertainment, news, sports and movies, which are included in Sky’s subscription video services and are also licensed through various distribution partnerships to third-party video providers to reach an additional 3 million households. Sky also generates revenue from the licensing of owned and licensed programming to third-party video providers and from the sale of advertising.
Sky’s direct-to-home (DTH) video services are delivered primarily through a combination of both satellite transmission and broadband connections that are marketed under the Sky brand in the United Kingdom, Italy, Germany, Ireland and Austria. Sky also offers a DTC streaming service providing video content over the internet that is marketed as NOW or Sky Ticket (NOW) in these countries, as well as in Switzerland.
Sky offers a variety of DTH video services, primarily through its Sky Q platform, where customers have access to a diverse selection of its owned channels, channels owned by third parties and local free-to-air public broadcasting channels, as well as certain ad-supported Peacock programming beginning in the fourth quarter of 2021 (year ended December 31, 2021), launching first in the United Kingdom and Ireland. The Sky Q platform includes integrated search functionality and a voice-activated remote control and offers integrated access to certain third-party internet-based apps providing content and music, such as DTC streaming services Disney+ and Netflix. Sky’s service offerings are tailored by country, with separate packages offered in each market. Basic packages include over 100 pay television channels in the United Kingdom and Ireland, over 50 channels in Italy, and over 30 channels in Germany and Austria. Specialty tiers for children’s, sports, movie and high-definition (HD) programming are available for additional fees. DTH customers may view programming live, record live programming through Sky’s DVR services or access its video on demand services with programming choices, such as television series, movies and special-events programming that are available for free or to rent or own digitally. These viewing options are also available through Sky’s mobile app and online portal. Sky also provides DTH video services over a broadband connection to customers who purchase Sky Glass smart televisions.
Sky’s NOW streaming service offers packages ranging from daily to monthly access to entertainment, sports and movies programming. The entertainment package includes Sky’s owned entertainment channels and a broad range of on demand programming series, including child-friendly on demand programming, as well as certain ad-supported Peacock programming in the United Kingdom and Ireland. The sports package provides access to Sky’s owned sports channels and the movie package includes access to a library of films.
Sky operates a diversified portfolio of Sky-branded channels, including entertainment channels featuring premium content, such as Sky Atlantic, Sky Max and Sky Showcase; premium sports channels under the Sky Sports brand, with a majority of channels dedicated to a specific sport, including European football; premium movie channels under the Sky Cinema brand, including family and children’s movie channels; and Sky-branded free-to-air channels, including Sky News.
Sky offers broadband and voice services in the United Kingdom, Ireland and Italy. Sky offers fiber-to-the-cabinet (FTTC), standard copper digital subscriber line (DSL) broadband and fiber-to-the-home (FTTH) services, with downstream speeds up to 500 megabits per second in the United Kingdom and up to 1 gigabit per second in Ireland and offers FTTH and FTTC services in Italy, with downstream speeds up to 1 gigabit per second. Sky deploys wireless hubs to customers that combine an internet and voice modem with a Wi-Fi router to deliver reliable internet speeds and enhanced coverage through an in-home Wi-Fi network.
Sky offers wireless services for handsets and tablets in the United Kingdom using a combination of an arrangement to access network assets from Telefónica and its own mobile core network. Customers may activate multiple lines per account, choose to pay for services on various gigabyte plans, roll data over three years and stream with unlimited data on Sky mobile apps. Customers may either bring their own device or purchase devices from Sky with the option to pay upfront or finance the purchase interest-free over periods ranging from 24 to 48 months.
In addition to owned channels as part of Sky’s video services, Sky distributes some of its owned channels on third-party platforms through both wholesale arrangements and arrangements with partners who distributes its owned channels as agents to their respective customer bases. Sky also licenses owned and licensed content to third parties and Peacock. Additionally, through a partnership with ViacomCBS Inc., Sky plans to launch SkyShowtime, a new DTC streaming service expected to be made available in select European markets starting in 2022.
Sky sells advertising across its owned television channels and also represents the sales efforts of third-party channels. Sky also sells advertising on its digital platforms and offers various technology, tools and solutions relating to Sky’s advertising business.
Network and Technology
Sky relies on various telecommunications providers to deliver video, broadband, voice and wireless services to its customers.
For a majority of customers, Sky’s DTH video platform is delivered via one-way digital satellite transmission that uses satellites leased from third parties for the distribution of television channels and is augmented by a set-top box with local DVR storage and high-speed, two-way broadband connectivity enabling interactive video services, such as integrated search functionality, on demand, DVR and voice services. Sky’s platform incorporates Wi-Fi connectivity for in-home distribution that allows wireless multiroom consumption. Sky has also developed a range of back-end and client software applications that provide customers with access to its content across multiple third-party devices.
Under the regulatory regime in the United Kingdom, Ireland and Italy, Sky accesses networks owned by third-party telecommunications providers for a fee to provide its broadband, voice, and wireless services in many cases, on regulated terms. Sky offers broadband and voice services in the United Kingdom using a combination of its own core fiber network and BT Openreach’s core and ‘last mile’ network under a wholesale and fee-based arrangement and in Italy primarily using Open Fiber’s network. Sky offers wireless services to customers in the United Kingdom using a combination of an arrangement to access network assets from Telefónica and its own mobile core network.
Sky continues to focus on technology initiatives to design, develop and deploy next-generation media and content delivery platforms, including Sky Q and NOW, which delivers video content, provides advanced search capabilities, including through a voice-activated remote control, and provides access to and integration of certain other DTC streaming services. These platforms and Sky Glass leverage its global technology platform. Sky Glass is a smart television with an operating system that provides a video service similar to Sky Q over a broadband connection, eliminating the need for a satellite dish or set-top box.
Sources of Supply and Other Operations
Sky’s owned television channels and NOW streaming service include content both owned by Sky and licensed from third parties and NBCUniversal. In some cases, licenses are on an exclusive basis. Sky has various multiyear contractual commitments for the licensing of programming, primarily sports rights and exclusive entertainment content. Sky’s most significant sports rights commitments include European football broadcast rights for Premier League games through the 2024-25 season in the United Kingdom and Bundesliga games through the 2024-25 season in Germany. Sky also has broadcast rights to Formula One through 2024 in the United Kingdom and Germany and through 2022 in Italy, English and Wales Cricket Board cricket games through 2024 in the United Kingdom, and Union of European Football Associations Champions League (UCL) through the 2023-24 season in Italy, as well as non-exclusive broadcast rights to certain Serie A games through the 2023-24 season in Italy.
Sky’s most significant commitments for the licensing of film and television entertainment content include exclusive rights with HBO, Paramount, Warner Bros. and NBCUniversal. Sky also produces and airs live news and sports programming and produces certain original programming through Sky Studios. Sky creates and invests in original scripted content that broadcasts across all of its territories and sells to other markets. Sky is also constructing a new studio production facility in Elstree, the United Kingdom.
To offer video services, in addition to its owned channels, Sky licenses substantial amounts of programming from third parties. The fees associated with these programming distribution agreements are generally based on the number of customers that are able to watch the programming and the platforms on which the content is provided. Sky seeks to include in distribution agreements the rights to offer such programming through multiple delivery platforms, such as through its on demand services, mobile apps and NOW streaming service.
Customer and Home Services
Sky’s customer service operations are increasingly a digital first offering. The home service group performs various tasks, including installing, servicing and performing upgrades of customer premise equipment.
Sales and Marketing
Sky offers DTC services to retail customers through customer service call centers, websites, telemarketing, and various retail outlets, as well as through advertising via direct mail, television and the internet.
Corporate and Other
The company’s other business interests consist primarily of the operations of Comcast Spectacor, L.P., which owns the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania, and other business initiatives, including Peacock.
Peacock is the company’s ad-supported DTC On Demand streaming service featuring NBCUniversal content, including exclusive Peacock originals, NBC and Telemundo shows, news, late-night comedy, live sports and a library of television shows and movies, providing customers access to hours of programming. Customers have the choice of three tiers of service: a free, ad-supported version; a subscription based, ad-supported version with access to all Peacock content; and a similar subscription-based, ad-free version. The subscription-based, ad-supported version is offered to Cable Communications X1 and Flex customers and similar customers at Cox Communications for no additional charge. In addition to NBCUniversal’s owned content, Peacock includes content licensed from third parties.
Cable Communications’ results are impacted by the seasonal nature of residential customers receiving the company’s services in college and vacation markets. This results in fewer net customer relationship additions in the second quarter (year ended December 2020) of each year.
Revenue in Cable Networks and Broadcast Television fluctuates depending on the timing of when the company’s programming is aired, which typically results in higher advertising revenue in the second and fourth quarters of each year. Advertising revenue at Sky typically has seasonally higher audience levels in winter months and increased competition in the summer during major sporting events where public service broadcasters lease the rights, such as the Olympic Games and the FIFA World Cup.
Revenue in Filmed Entertainment fluctuates due to the timing, nature and number of films released in movie theaters, on DVDs, and through various other distribution platforms, including viewing on demand. Release dates are determined by various factors, including competition and the timing of vacation and holiday periods. As a result, revenue tends to be seasonal, with increases experienced each year during the summer months and around the holiday season. Content licensing revenue in Cable Networks, Broadcast Television and Filmed Entertainment also fluctuates due to the timing of when the company’s content is made available to licensees.
Revenue in Theme Parks fluctuates with changes in theme park attendance that typically result from the seasonal nature of vacation travel and weather variations, local entertainment offerings and the opening of new attractions, as well as with changes in currency exchange rates. Theme Parks experiences peak attendance during the spring holiday period, the summer months when schools are closed and the Christmas holiday season.
Sky’s results are impacted by the seasonal nature of residential customers receiving the company’s DTH and DTC streaming services, including the start of the new soccer seasons and the Christmas holiday. This results in greater net customer relationship additions and higher subscriber acquisition costs in the second half of each year due to higher marketing expenses.
The Communications Act of 1934, as amended, and Federal Communications Commission regulations and policies affect various aspects of the company’s cable communications and broadcast businesses in the United States, and these businesses are also subject to other regulation by federal, state and local authorities.
Sky also has voluntarily committed to the United Kingdom’s communications regulator, the Office of Communications to provide access control services to third parties that enable them to provide interactive services.
Cable Communications competes with a number of different sources in the United States that provide news, sports, information and entertainment programming to consumers, including direct broadcast satellite providers, including AT&T’s DIRECTV and DISH Network, which transmit satellite signals to substantially all U.S. households to provide video programming and other information similar to its video services; phone companies, including AT&T and Verizon.
Cable Communications competes with national wireless phone service providers in the United States, including AT&T and Verizon.
The company’s registered trademarks include Comcast, NBCUniversal and the Comcast and NBCUniversal logos.
Comcast Corporation was founded in 1963. The company was incorporated under the laws of Pennsylvania in 2001.