Charter 2011 Annual Report Download - page 17

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5
were over 90 days past due in payment, and approximately 1,400 and 1,000 customers, respectively, whose accounts
were over 120 days past due in payment.
(b) “Video customers” represent those customers who subscribe to our video cable services.
(c) “Internet customers” represent those customers who subscribe to our Internet service.
(d) “Telephone customers” represent those customers who subscribe to our telephone service.
(e) “Primary Service Units” or “PSUs” represent the total of video, Internet and telephone customers.
(f) Included within commercial video customers are those in commercial and multi-dwelling structures, which are calculated
on an equivalent bulk unit (“EBU”) basis. We calculate EBUs by dividing the bulk price charged to accounts in an area
by the published rate charged to non-bulk residential customers in that market for the comparable tier of service. This
EBU method of estimating basic video customers is consistent with the methodology used in determining costs paid to
programmers and is consistent with the methodology used by other multiple system operators (“MSOs”). As we increase
our published video rates to residential customers without a corresponding increase in the prices charged to commercial
service or multi-dwelling customers, our EBU count will decline even if there is no real loss in commercial service or
multi-dwelling customers.
(g) Prior year commercial Internet customers were adjusted to reflect current year presentation.
(h) “Digital video RGUs” include all video customers that rent one or more digital set-top boxes or cable cards.
(i) “Revenue generating units” or “RGUs” represent the total of all basic video, digital video, Internet and telephone
customers, not counting additional outlets within one household. For example, a customer who receives two types of
service (such as basic video and digital video) would be treated as two RGUs and, if that customer added on Internet
service, the customer would be treated as three RGUs. This statistic is computed in accordance with the guidelines of
the National Cable & Telecommunications Association (“NCTA”).
Video Services
In 2011, residential video services represented approximately 50% of our total revenues. Our video service offerings include the
following:
• Basic and Digital Video. All of our video customers receive a package of basic programming which generally consists
of local broadcast television, local community programming, including governmental and public access, and limited
satellite-delivered or non-broadcast channels, such as weather, shopping and religious programming. Our digital video
services include a digital set-top box, an interactive electronic programming guide with parental controls, an expanded
menu of pay-per-view channels, including OnDemand (available nearly everywhere), digital quality music channels and
the option to also receive a cable card. In addition to video programming, digital video service enables customers to
receive our advanced video services such as DVRs and HD television.
• Premium Channels. These channels provide original programming, commercial-free movies, sports, and other special
event entertainment programming. Although we offer subscriptions to premium channels on an individual basis, we offer
an increasing number of digital video and premium channel packages, and we offer premium channels combined with
our advanced video services. Customers who purchase premium channels also have access to that programming
OnDemand and increasingly over the Internet. Charter offers premium sports content and access to a number of cable
programmers such as HBO, Cinemax, EPIX and Turner on an authenticated basis over the Internet on charter.net.
• OnDemand, Subscription OnDemand and Pay-Per-View. OnDemand service allows customers to select from hundreds
of movies and other programming at any time. OnDemand includes HD and three dimensional ("3D") content. OnDemand
programming options may be accessed for a fee or, in some cases, for no additional charge. In some areas we also offer
subscription OnDemand for a monthly fee or included in a digital tier premium channel subscription. Pay-per-view
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.