Charter 2007 Annual Report Download - page 18

(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 video customers is consistent with the methodology used in determining costs paid to programmers and has
been used consistently.
(d)
Includes all video customers 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)
“Telephone customers” include all customers receiving telephone service.
Video Services
In 2007, video services represented approximately 56% of our
total revenues. Our video service offerings include the following:
kBasic Video. All of our video customers receive a package of
basic programming which generally consists of local broad-
cast television, local community programming, including
governmental and public access, and limited satellite-deliv-
ered or non-broadcast channels, such as weather, shopping
and religious services. Our basic channel line-up generally
has between 9 and 35 channels.
kExpanded Basic Video. This expanded programming level
includes a package of satellite-delivered or non-broadcast
channels and generally has between 20 and 60 channels in
addition to the basic channel line-up.
kDigital Video. We offer digital video service to our customers
in several different service combination packages. All of our
digital packages include a digital set-top box or cable card,
an interactive electronic programming guide, an expanded
menu of pay-per-view channels, including OnDemand, and
digital quality music channels and the option to also receive
digital packages which range generally from 3 to 45 addi-
tional video channels. We also offer our customers certain
digital packages with one or more premium channels that
give customers access to several alternative genres of certain
premium channels (for example, HBO Family»and HBO
Comedy»). Some digital tier packages focus on the interests
of a particular customer demographic and emphasize, for
example, sports, movies, family, or ethnic programming. In
addition to video programming, digital video service enables
customers to receive our advanced broadband services such
as OnDemand, DVRs, and high definition television. Other
digital packages bundle digital television with our high-
speed Internet services and telephone services.
kPremium Channels. These channels provide original program-
ming, commercial-free movies, sports, and other special
event entertainment programming. Although we offer sub-
scriptions to premium channels on an individual basis, we
offer an increasing number of digital video channel packages
and premium channel packages, and we offer premium
channels bundled with our advanced broadband services.
kPay-Per-View. These channels allow customers to pay on a
per event basis to view a single showing of a recently
released movie, a one-time special sporting event, music
concert, or similar event on a commercial-free basis.
kOnDemand and Subscription OnDemand. OnDemand service
allows customers to select from hundreds of movies and
other programming at any time with digital picture quality,
including some in high-definition. These programming
options may be accessed for a fee or, in some cases, for no
additional charge. In some systems we also offer subscrip-
tion OnDemand for a monthly fee or included in a digital
tier premium channel subscription.
kHigh Definition Television. High definition television offers our
digital customers certain video programming at a higher
resolution to improve picture quality versus standard analog
or digital video images.
kDigital Video Recorder. DVR service enables customers to
digitally record programming and to pause and rewind live
programming.
High-Speed Internet Services
In 2007, residential high-speed Internet services represented
approximately 21% of our total revenues. We offer several tiers
of high-speed Internet services with speeds ranging up to 16
megahertz to our residential customers via cable modems
attached to personal computers. We also offer home networking
gateways to these customers, which permit customers to connect
up to five computers in their home to the Internet
simultaneously.
Telephone Services
In 2007, telephone services represented approximately 6% of our
total revenues. We provide voice communications services pri-
marily using VoIP technology, to transmit digital voice signals
over our systems. Charter Telephone includes unlimited nation-
wide calling, voicemail, call waiting and caller ID, and call
forwarding features. Charter Telephone also provides interna-
tional calling either by the minute or in a package of 250
minutes. At December 31, 2007, telephone service was available
to approximately 9.0 million homes passed, and we were market-
ing these services to approximately 92% of those homes. We will
continue to prepare additional markets for telephone launches in
2008 and expect to make telephone service available to approx-
imately 85% of our estimated total homes passed by year-end
2008.
Commercial Services
In 2007, commercial services represented approximately 6% of
our total revenues. Commercial services, offered through Charter
Business, include scalable, tailored and cost-effective broadband
communications solutions for business organizations, such as
business-to-business Internet access, data networking, video and
music entertainment services, and business telephone. We will
continue to expand the marketing of our video, high-speed
Internet, and telephone services to the business community.
CHARTER COMMUNICATIONS, INC. 2007 FORM 10-K
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