Charter 2006 Annual Report Download - page 21

CHARTER COMMUNICATIONS, INC. 2006 FORM 10-K
(a) ‘‘Customers’’ include all persons our corporate billing records show as receiving service (regardless of their payment status), except for complimentary accounts (such as
our employees). In addition, at December 31, 2006 and 2005, ‘‘customers’’ include approximately 35,700 and 50,500 persons whose accounts were over 60 days past due
in payment, approximately 6,000 and 14,300 persons, whose accounts were over 90 days past due in payment and approximately 2,700 and 7,400 of which were over
120 days past due in payment, respectively.
(b) ‘‘Analog video customers’’ include all customers who receive video services.
(c) Included within ‘‘video customers’’ are those in commercial and multi-dwelling structures, which are calculated on an equivalent bulk unit (‘‘EBU’’) basis. EBU is
calculated for a system by dividing the bulk price charged to accounts in an area by the most prevalent price charged to non-bulk residential customers in that market for
the comparable tier of service. The EBU method of estimating analog video customers is consistent with the methodology used in determining costs paid to
programmers and has been used consistently.
(d) ‘‘Digital video customers’’ include all households that have one or more digital set-top boxes or cable cards deployed.
(e) ‘‘Residential high-speed Internet customers’’ represent those residential customers who subscribe to our high-speed Internet service.
(f) ‘‘Residential telephone customers’’ include all residential customers receiving telephone service.
Video Services (OnDemand and Subscription OnDemand. OnDemand service
In 2006, video services represented 61% of our total revenues. allows customers to access hundreds of movies and other
Our video service offerings include the following: programming at any time with digital picture quality. In
(Basic Analog Video. All of our video customers receive a some systems we also offer subscription OnDemand for a
package of basic programming which generally consists of monthly fee or included in a digital tier premium channel
local broadcast television, local community programming, subscription.
including governmental and public access, and limited (High Definition Television. High definition television offers our
satellite-delivered or non-broadcast channels, such as digital customers certain video programming at a higher
weather, shopping and religious services. Our basic channel resolution to improve picture quality versus standard analog
line-up generally has between 9 and 30 channels. or digital video images.
(Expanded Basic Video. This expanded programming level (Digital Video Recorder. DVR service enables customers to
includes a package of satellite-delivered or non-broadcast digitally record programming and to pause and rewind live
channels and generally has between 20 and 60 channels in programming.
addition to the basic channel line-up.
High-Speed Internet Services
(Digital Video. We offer digital video service to our customers In 2006, residential high-speed Internet services represented 19%
in several different service combination packages. All of our of our total revenues. We offer several tiers of high-speed
digital packages include a digital set-top box or cable card, Internet services to our residential customers primarily via cable
an interactive electronic programming guide, an expanded modems attached to personal computers. We also offer home
menu of pay-per-view channels, and the option to also networking gateways to these customers.
receive digital packages which range generally from 3 to 45
additional video channels. We also offer our customers Telephone Services
certain digital packages with one or more premium In 2006, telephone services represented 2% of our total revenues.
channels that give customers access to several alternative We provide voice communications services primarily using
genres of certain premium channels (for example, HBO VoIP, to transmit digital voice signals over our systems. At
Family˛ and HBO Comedy˛). Some digital tier packages December 31, 2006, telephone service was available to approxi-
focus on the interests of a particular customer demographic mately 6.8 million homes passed, and we were marketing these
and emphasize, for example, sports, movies, family, or services to approximately 93% of those homes. We will continue
ethnic programming. In addition to video programming, to prepare additional markets for telephone launches in 2007.
digital video service enables customers to receive our Commercial Services
advanced services such as OnDemand and high definition In 2006, commercial services represented 6% of our total
television. Other digital packages bundle digital television revenues. We offer integrated network solutions to commercial
with our advanced services, such as high-speed Internet and institutional customers. These solutions include high-speed
services and telephone services. Internet and video services. In addition, we offer high-speed
(Premium Channels. These channels provide original program- Internet services to small businesses. We will continue to expand
ming, commercial-free movies, sports, and other special the marketing of our video and high-speed Internet services to
event entertainment programming. Although we offer sub- the business community and have begun to introduce telephone
scriptions to premium channels on an individual basis, we services.
offer an increasing number of digital video channel pack- Sale of Advertising
ages and premium channel packages, and we offer premium In 2006, sale of advertising represented 6% of our total revenues.
channels bundled with our advanced services. We receive revenues from the sale of local advertising on
(Pay-Per-View. These channels allow customers to pay on a satellite-delivered networks such as MTV˛, CNN˛ and ESPN˛.
per event basis to view a single showing of a recently In any particular market, we generally insert local advertising on
released movie, a one-time special sporting event, music
concert, or similar event on a commercial-free basis.
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