Charter 2015 Annual Report Download - page 22

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(d) Monthly residential revenue per residential customer is calculated as total residential video, Internet and voice quarterly
revenue divided by three divided by average residential customer relationships during the respective quarter.
(e) Charter revised its methodology for counting small and medium business video customers. Beginning in the fourth
quarter of 2015, small and medium business customers are counted based on the number of customer locations. Previously,
we had counted and reported video customers on an equivalent bulk unit (“EBU”) basis. EBUs were calculated 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. Prior year information has been revised to reflect our revised methodology.
(f) Monthly small and medium business revenue per customer is calculated as total small and medium business quarterly
revenue divided by three divided by average small and medium business customer relationships during the respective
quarter.
(g) Enterprise PSUs represents the aggregate number of Charter's fiber service offerings counting each separate service
offering at each customer location as an individual PSU.
Video Services
In 2015, residential video services represented approximately 47% of our total revenues. Our video service offerings include the
following:
• Video. Substantially 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 along with a digital set-top
box that provides an interactive electronic programming guide with parental controls, access to pay-per-view channels,
including video on demand (available nearly everywhere), digital quality music channels and the option to also receive
a cable card. Customers have the option to purchase additional tiers of services including premium channels which
provide original programming, commercial-free movies, sports, and other special event entertainment programming.
• Video On Demand, Subscription On Demand and Pay-Per-View. In most areas, we offer video on demand service which
allows customers to select from 10,000 or more titles at any time. Video on demand includes standard definition, HD
and three dimensional (“3D”) content. Video on demand 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. Video on demand 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 nearly all video programming at a higher resolution
to improve picture and audio quality versus standard basic or digital video images. Our all-digital transmission of channels
allows us to offer more than 200 HD channels in substantially all of our markets. We are also rolling out HD auto-tune
in our markets which is a feature that ensures HD set-tops tune to the HD version of a channel even when the standard
definition version is selected.
• 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 our customers also have the ability to program their DVR's remotely via the Spectrum
TV App or on our website.
• Spectrum TV App on Mobile Devices. The Spectrum 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 Spectrum TV App allows customers to watch over 150 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. Customer's now have the
ability to view OnDemand programming within the Spectrum TV App and can download programming directly to their
device to view anytime, anywhere, even without an Internet connection. We also currently offer content already available
online through Charter.net, and via programmer authenticated applications and websites such as HBO Go® and
WatchESPN®.