Charter 2013 Annual Report Download - page 19

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(g) "Revenue per Customer Relationship" is calculated as total residential video, Internet and voice quarterly revenue divided
by three divided by average residential customer relationships during the respective quarter.
(h) Included within commercial video customers are those in commercial 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. As we increase our published video rates
to residential customers without a corresponding increase in the prices charged to commercial service customers, our
EBU count will decline even if there is no real loss in commercial service customers. For example, commercial video
customers decreased by 10,000 during the year ended December 31, 2013 due to published video rate increases.
Video Services
In 2013, residential video services represented approximately 49% of our total revenues. Our video service offerings include the
following:
• 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 digital tiers,
premium and 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 DVR's and HD television. Premium 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. Much of our programming is now offered
OnDemand and increasingly over the Internet.
• OnDemand, Subscription OnDemand and Pay-Per-View. In most areas, we offer OnDemand service which allows
customers to select from 10,000 or more titles at any time. OnDemand includes standard definition, HD and three
dimensional ("3D") content. OnDemand programming options may be accessed for free if the content is associated with
the customer’s linear subscription, or for a fee on a transactional basis. OnDemand services may also be offered on a
subscription basis included in a digital tier premium channel subscription or for a monthly fee. 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.
• High Definition Television. HD 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. In 2014, we plan to complete our
transition to all-digital transmission of channels which will allow us to increase the number of HD channels offered to
more than 200 in substantially all of our markets.
• Digital Video Recorder. DVR service enables customers to digitally record programming and to pause and rewind live
programming. Charter customers may lease multiple DVR set-top boxes to maximize recording capacity on multiple
televisions in the home. Most of Charter customers also have the ability to program their DVR's remotely via tablet and
phone applications or our website.
• Charter TV App. The Charter TV App enables Charter video customers to search and discover content on a variety of
customer owned devices, including the iPhone®, iPad®, and iPod Touch®, as well as the most popular Android™ based
tablets. The Charter TV App allows customers to watch over 100 channels of cable TV and use the device as a remote
to control their digital set-top box while in their home. It also allows customers the ability to browse Charter's program
guide, search for programming, and schedule DVR recordings from inside and outside the home. Charter's online offerings
include many of our largest and most popular networks. We also currently offer content already available online through
Charter.net such as HBO Go® and WatchESPN® with other online content. We are currently testing a network based user
interface with the same look and feel of the Charter TV App. The user interface is being designed to work with all of
our existing and future set-top boxes. A second alternative is to deploy the user interface to the majority of our existing
set-top boxes and all of our new set-top boxes which are Data Over Cable Service Interface Specification ("DOCSIS")
enabled.