We've become a multiproduct company delivering video, voice, and high-speed Internet services over one of the nation's most advanced, fiber-optic-based networks.
As a result, we've become the largest cable and residential high-speed Internet provider and the fourth-largest phone company in the United States.
Today, we can provide best-in-class video, voice and Internet services to more than 42 million households. This creates a competitive advantage that will fuel growth our for years to come.
57.0 million subscriptions (RGUs)1, and growing, help drive revenue growth. In 2007, we added 2.5 million new digital cable subscribers, 1.7 million new high-speed Internet subscribers and 2.5 million new customers to Comcast Digital Voice. We have lots of room for growth.
Networks that deliver targeted content. Our programming division feeds the passions and interests of millions of consumers. From sports to fashion, horror to pop culture, and kids' stuff to the celebration of competition in all its forms, our programming division delivered a 25% increase in revenue in 2007.2
A national footprint encompassing 20 of the top 25 markets. Comcast's network reaches over 48 million households with 92% of our video subscribers clustered in the top 40 Comcast markets.
A powerful, high-capacity, fiber-optic-based network in place. With out nationwide network, we reach out customers through 575,000 plant miles, including 126,000 miles of fiber-optic cable. With 103,000 optical nodes connecting to an average of 428 homes per node, we are delivering a growing amount of content to our customers. Each week we deliver 70 million On Demand view, 8 billion web pages, 360 million e-mails and 190 million phone calls.
Multiple paths to growth Digital video, high-speed Internet and digital phone have fueled the growth of our residential business. We believe we can continue to grow by continuing to offer differentiated services in attractive packages, entering into the business services market and developing the interactive opportunities of our advertising business.
- Digital Cable: With 24.1 million video subscribers, Comcast continues to grow as the nation's leading provider of cable television. Digital cable growth has been especially strong. In 2007, we increased the number of new digital customers by 2.5 million or nearly 20%. We also increased the number of customers subscribing to digital cable with HDTV and/or DVR by 39% in 2007 to 6.3 million.
- High-Speed Internet: Faster speeds of up to 16 Mbps and advanced features are enticing millions of users to switch from DSL to Comcast. 64% of our fourth quarter 2007 customer additions were DSL switchers. High-speed Internet subscribers increased 15% or 1.7 million in 2007, and average monthly revenue per subscriber continues to be relatively stable at $43.
- Digital Voice: In 2007, we added 2.5 million Comcast Digital Voice subscribers in less than three years and became the fourth-largest residential phone company in the United States. We offer phone service to 42 million homes or 86% of our homes passed. With only 10% penetration, we are just getting started.
- Cable Advertising: By putting the power of cable television to work for local, regional and national advertisers, our advertising sales division, Comcast Spotlight, has grown into a $1.5 billion business. With a presence in nearly 90 U.S. markets, we help advertisers reach an audience with greater purchasing power than that of broadcast TV, and enable them to target markets and zip codes that matter to them most. We believe interactive advertising could become another future driver of growth. Together with other cable companies we are working to build an interactive advertising platform to capture a bigger portion of the $290 billion advertising market. With almost 110 million cable homes passed and 65 million video customers, the cable industry is well positioned to deliver huge audiences to advertisers and a whole new range of interactive applications unique to TV.
- Business Services: The business services market offers an exciting new opportunity that is a natural extension of our existing network and services. Much of the necessary infrastructure is already in place to serve the approximately 5 million small and medium-sized businesses in our footprint. We are in the early stages of what can be a meaningful line of business, as we offer a suite of services including video, voice and high-speed Internet to an entirely new base of customers.
- Multiple Paths to Growth: Only Comcast can deliver digital cable, high-speed Internet and digital phone in compelling packages to more than 42 million homes. Our ability to offer superior products in attractive packages that can appeal to residential and now commercial customers will enable us to continue to diversify our revenue streams beyond just video. In 2007, over 80% of our cable revenue growth came from new services, including digital cable, high-speed Internet and phone.
Comcast Digital Cable: A revolution in the way you watch TV
- 10,000 On Demand options a month and growing- real freedom of choice.
- More HD choices than any other provider- with plans to make available more than 1,000 HD movies and TV shows every month by the end of 2008.
- More convenience with DVR, enabling more control for subscribers to record favorite shows, pause live TV or rewind their favorite scenes.
- A vision to deliver the most and best content consumers can find anywhere- any movie, TV show or user-generated content, all at the click of a remote.
Comcast High-Speed Internet: High-speed access that keeps getting faster
Comcast is the largest residential Internet service provider in the United States- and it's no wonder why.
Comcast's speeds are leaving the competition behind- 7 times faster than 768 Kbps DSL. And Comcast offers PowerBoostTM, our patent-pending technology that delivers a burst of speed when downloading large files- with speeds up to 16 Mbps.
Comcast also delivers a host of exceptional features along with access to Comcast.net:
- Comcast Web mail and video mail
- Top-rated security software from McAfee©
- The FanTM video player, an easy way to find, search, watch, organize and save favorite video content
- Comcast PhotoCenter, unlimited photo storage and discounted prints
- Rhapsody Radio PLUS, free access to a vast library of over two million songs from over 46,000 artists
Comcast Digital Voice: Unlimited calling, crystal-clear connections
Customers can get unlimited local and domestic long distance, low international rates, enhanced voice mail, over 12 popular features, all for a single low monthly rate (bundled deals offer even more savings). Our digital phone subscriptions are soaring, because the advantages are obvious:
- Customers get the same quality, clarity and features of traditional phone services, plus advanced features like online access to voice mail- all on Comcast's private network
- Top calling features, including Caller ID, Call Waiting, Three-Way Calling and Call Forwarding
- Key enhancements, including the ability to listen to and manage voice mail messages using any Internet-connected computer
- Battery backup to maintain phone service in the event of a power outage
- Compatibility with most home alarm systems
- Convenience (through Triple and Double Play offers) of a single bill for cable, high-speed Internet and phone
- Coming soon: a host of new integrated features, including Universal Caller ID, which will allow customers to view call information on their phone, TV and computer, and Comcast's Enhanced Cordless Phone, which will enable customers to access e-mail, voice mail, instant messaging, a universal address book and yellow pages through a home-based cordless phone
The Future, Now
Project Infinity is our vision to give consumers the ability to watch any movies, television show, user-generated content or other video that a producer wants to make available On Demand. It is a logical extension of everything we've already done to revolutionize TV. Today, our On Demand library exceeds 10,000 selections a month, and monthly traffic has climbed to over 275 million views. Project Infinity raises the bar even higher by delivering:
- The best and most content consumers will find anywhere- more HD, more sports, more movies, more kids' programs and network television
- More than 1,000 HD programming in 2008, plus the most popular networks in HD as they debut
- More than 6,000 movies a month (3,000 of those available in HD) by 2009
Tru2wayTM technology is the new name for the Open CableTM Applications platform that will create exciting new ways to enjoy television anywhere, anytime you want. Now being incorporated into TVs, set-top boxes and other electronic devices, it enables cable companies, content developers, network programmers and consumer electronics companies to quickly deliver interactive services- and, through open standards, it will work on almost every cable system throughout the U.S. as well as in other countries.
Today, Comcast is at the forefront of leveraging tru2way:
- Working with leading partners, including Panasonic, Samsung, LG, Intel, TiVo, Motorola, Cisco and Microsoft to make the tru2way solution a reality
- Partnering with Panasonic to introduce AnyPlay, the first portable DVR player powered by tru2way technology, to enable consumers to watch their favorite recorded programs anytime, anywhere
- Also partnering with Panasonic to develop and plug-and-plsy, interactive, digital-cable-ready TV with tru2way technology inside, capable of receiving all available interactive cable services without a separate set-top box
Our high-capacity, fiber-optic-based network enables us to provide an integrated and unparalleled product experience to customers across video, voice and data. We continue to seek improvements and build applications that will improve the entire in-home entertainment and communications experience for our customers.
Comcast is evolving its network from broadband to wideband with the deployment of DOCSIS 3.0 (Data Over Cable Service Interface Specifications). DOCSIS 3.0 is a new standard for delivering high-speed Internet services across cable networks that will enable Comcast to deliver significantly faster speeds of up to 100 Mbps to customers over the new two years, with the capacity to deliver speeds of 160 Mbps or more in the future.
With DOCSIS 3.0, customers will be able to download an HD movie- the equivalent of 3,000 MP3-formatted songs- in less than four minutes (on dial=up that would take days). And with wideband, customers will have the capacity to watch another movie even while downloading
Fancast.com is the first online destination that enables users to watch, manage and find entertainment content wherever it's available- on Fancast, on TV, ON Demand, online, on DVD or in theaters. On Fancast, users can:
- Search more than 11 million web pages for content and information on more than 50,000 TV shows, 80,000 movies and 1.2 million people
- Discover new content through personalized recommendations based on past preferences
- Instant access to over 3,000 hours of free, full-length streaming content from networks, movie trailers, short videos and interviews
- A "Watch it" tool that tells users where content resides- on Fancast, on TV, online, On Demand, on DVD or in theaters
- Create a Fancast "Watch List" to organize programming choices, create a personalized playlist and receive recommendations based on past preferences
- Link quickly to Fandango, one of the Web's top online movie sites, to purchase tickets to theatrical releases
- Latest this year, Comcast customers will be able to program their DVR recordings in advance from their computer
- In 2009, users will be able to mark and add content to a folder in their video on demand menu, directly from their computer
Developed in partnership with Panasonic and available in 2009, the AnyPlayTM P-DVR is the first portable DVR/DVD player powered by tru2way technology. The AnyPlay P-DVR will let Comcast customers record programming at home, take it will them wherever they go, and enjoy it whenever they want.
The AnyPlay P-DVR features 60GB of digital video recording capacity and an 8.5-inch folding LCD display scree and integrated stereo speakers.
The SmartZoneTM Communications Center allows customers to enjoy the convenience of going to one place to send and receive e-mail, check, manage and even forward voicemails from any computer, manage a single address book, and in the future, remotely program their DVRs. Customers can also access personalized information such as weather, new reports and video clips. This innovative online application can bring simplicity and convenience to our customers' lives by converging and integrating features of Comcast phone, Internet and videos services, such as:
- Viewable Voicemail: review your call log online and select voicemails you want to hear, in the order you want to hear them
- Integrated E-mail and Voicemail: view, send and manage e-mail and voicemail together online in one convenient location
- Voicemail Forwarding: forward voicemail messages through e-mail
- Universal Address Book: a single, convenient place to store and access contacts from multiple devices, including computer, phone and, eventually, TV
Future features include Remote DVR programming via any Internet-connected device, as well as instant messaging and video instant messaging.
1 Subscriptions (RDUs) represent the sum of basic and digital cable, high-speed Internet and phone subscribers, excluding additional outlets.
2 Programming revenue includes our national networks E! Entertainment Television, Style Network, The Golf Channel, VERSUS, G4 and other emerging networks.