Charter 2010 Annual Report Download - page 19

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music concert, or similar event on a commercial-free basis.
High Denition Television. High definition television offers
our digital customers certain video programming at a higher
resolution to improve picture and audio quality versus standard
basic or digital video images. We have invested and continue
to invest in switched digital video (“SDV”) technology and
simulcast to increase the number of high definition channels
offered.
Digital Video Recorder. DVR service enables customers to
digitally record programming and to pause and rewind live
programming.
We recently announced a multi-year agreement with TiVo, Inc.
(“TiVo”) that will leverage the TiVo user interface to bring an
enhanced entertainment experience to customers using a hybrid
platform that leverages traditional cable and next generation IP
technologies.
High-Speed Internet Services
In 2010, residential high-speed Internet services represented
approximately 23% of our total revenues. We currently offer
several tiers of high-speed Internet services with speeds up to 60
megabytes per second download speed 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. We are rolling out DOCSIS 3.0 wideband
technology allowing us to offer faster high-speed Internet service.
Telephone Services
In 2010, residential telephone services represented approximately
12% of our total revenues. We provide voice communications
services primarily using VoIP technology to transmit digital voice
signals over our systems. Charter Telephone includes unlimited
nationwide and in-state calling, voicemail, call waiting, caller ID,
call forwarding and other features. Charter Telephone® also provides
international calling either by the minute or in a package of 250
minutes per month.
Commercial Services
In 2010, commercial services represented approximately 7% of our
total revenues. Commercial services, offered through Charter Business™,
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include scalable broadband communications solutions for business
organizations, such as business-to-business Internet access, data
networking, fiber connectivity to cellular towers, video and music
entertainment services, and business telephone. We are investing in
commercial business for connection growth and scaling operating
platforms and systems for larger and broader customer needs.
Sale of Advertising
In 2010, sales of advertising represented approximately 4% of our
total revenues. We receive revenues from the sale of local advertising
on satellite-delivered networks such as MTV®, CNN® and ESPN®.
In any particular market, we generally insert local advertising on up
to 40 channels. We also provide cross-channel advertising to some
programmers.
In 2010, Charter began deployment of Enhanced TV Binary
Interchange Format (“EBIF”) technology to set top boxes in select
service areas within the Charter footprint. EBIF is a technology
foundation that will allow Charter to deliver enhanced and
interactive television applications and enable our video customers
to use their remote control to interact with their television
programming and its advertisements. EBIF will enable Charter’s
customers to request such items as coupons, samples, and brochures
from advertisers and also will enable advertisers to reach audiences in
new ways.
From time to time, certain of our vendors, including programmers
and equipment vendors, have purchased advertising from us. For
the years ending December 31, 2010, 2009 and 2008, we had
advertising revenues from vendors of approximately $46 million, $41
million, and $39 million, respectively. ese revenues resulted from
purchases at market rates pursuant to binding agreements.
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Our revenues are derived principally from the monthly fees
customers pay for the services we provide. We typically charge a one-
time installation fee which is sometimes waived or discounted during
certain promotional periods. e prices we charge for our products
and services vary based on the level of service the customer chooses
and the geographic market. In accordance with FCC rules, the prices
we charge for video cable-related equipment, such as set-top boxes
and remote control devices, and for installation services, are based on
actual costs plus a permitted rate of return in regulated markets.