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Advanced Video Services | On Demand

Letter to Shareholders

We are striving to deliver a superior video product with unparalleled choice and control. In 2009, we continued to enhance our video offerings, expanding our digital penetration to 78% and increasing the number of customers choosing our advanced video services, HD and/or DVR. More than 1.4 million new customers purchased these services last year, and we now count more than 9 million advanced services customers. As we complete the rollout of All-Digital in each market, we are offering consumers more digital cable channels, including 100 or more HD channels, and we are doubling the amount of multicultural programming we offer to meet the viewing needs of a changing nation. We are providing nearly 20,000 On Demand programs, including almost 3,000 HD On Demand choices, and we are expanding the functionality and ease of use of our video services with new interactive program guides, remote DVR scheduling and multi-room DVR access. All of these enhancements advance our mission to give customers dramatically more content choices delivered anytime, anywhere, to any device—what we call Project Infinity.

As part of this effort, in December we launched Fancast XFINITY TV to provide our cable customers with online access to more than 19,000 movies and TV shows, enhancing the value of their cable subscription.

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