Annual Report 2013 The Cable Center Mission The Cable Center Staff Joyce Alden-Schuyler Laura Cymansky Jana Henthorn Jaime Reitz Robin Berhost Taylor Egner Matt Hollingsworth Larry Satkowiak Karen Chipley Bethany Friday Brian Kenny Karen Stone Diane Christman Lindy Hatch Cynthia Lang Shanah Zishka Sarah Clausen Robert Hecht Steve Luiting As of 12/16/13

2013 Board of Directors 2013 Honorary Board

Chairman Directors Glenn Britt Gerald “Jerry” Levin Jerald L. Kent Bridget L. Baker Julian A. Brodsky Robert J. Lewis Nomi Bergman David Cohen John Malone Vice Chairman John Bickham Chuck Dolan Robert J. Miron Nickolas Davatzes Matthew C. Blank Frank M. Drendel Trygve E. Myhren Sean Bratches Alan Gerry Thomas F. Puckett Treasurer & Secretary Ann Carlsen Dr. Richard R. Green Leslie “Les” H. Read David Van Valkenburg Paul Cronin John W. Goddard John V. Saeman Brian Deevy Gustave M. Hauser Stanley M. Searle Executive Committee Jeffrey S. DeMond John Hendricks Gail F. Sermersheim Michael Fries Kenneth Lowe Leo J. Hindery, Jr. John J. Sie Larry Satkowiak Robert Gessner Peter Kalan Amos B. Hostetter, Jr. R. E. “Ted” Turner Michael Willner Marvin L. Jones Barbara York Phil Lind Paul S. Maxwell Phil McKinney Kyle McSlarrow Dan Moloney Josh Sapan Robert Stanzione Peter Stern Italia Commisso Weinand David M. Zaslav Larry Satkowiak Jerald Kent

Dear Friends and Colleagues –

We refined The Cable Center’s mission in 2013 to focus on five areas of concentration. These five programs include The Cable History Project, Cable Today & Tomorrow, Academic Community Programs, Customer Care Central and the Cable Hall of Fame. The Cable Center tells the story of the cable industry — the vibrant industry continually on the cutting edge of communications technology.

Under the Cable History Project, we have defined three distinct generations of the cable industry. In the next year, The Cable Center will use this three-generation model to write a new book that tells the story of the cable industry. Barco Library will continue to produce more oral histories and increase the amount of content on our website. Cable Today & Tomorrow will concentrate on the cable stories from an active cable industry. It will work together with the Cable History Project to identify the trends and decisions that are important to the future of the cable industry.

In both the Academic Community Programs and Customer Care Central initiatives, we have expanded our international outreach and continue to collaborate with our academic fellows and industry executives to educate our constituency. The Customer Care Committee (C5) group has embarked on a research project, through The Center’s Senior Fellows Drs. Ronald Rizzuto and Charles Patti, in an effort to develop CEM metrics and benchmarking results. We initiated international efforts at both Cable Congress, London and CTAM Europe, Barcelona. We participated as cable industry representatives in a media and legislative-focused cultural exchange with Turkey’s educational institutions and Parliament.

At the NCTA Cable Show in Washington, D.C., we inducted six new members into the Cable Hall of Fame. We extend our congratulations to all of our inductees and sincere thanks to all of our sponsors for another excellent event. In addition, nine Students from Northern Virginia Community College received the De Sorrento Award this year and were given the opportunity to experience this year’s Cable Hall of Fame Celebration first-hand as student ambassadors.

In the last six years, we successfully stabilized The Center’s financial condition. In the coming years, we will look forward to developing new programs and strategies to meet the demands of a constantly changing cable industry. We sincerely hope you will help us shape the future of The Cable Center through your input and contributions.

Best regards,

Jerald L. (Jerry) Kent Larry Satkowiak Board of Directors Chair President and CEO

Annual Report 4 Cable’s Best

2013 Cable Hall of Fame honors six remarkable leaders

The 2013 Cable Hall of Fame Celebration recognized six illustrious individuals who exemplify cable’s proud heritage of innovation and entrepreneurship. Induction into the Cable Hall of Fame is an award unlike any other; it preserves tradition, recognizes innovation and reflects the earned respect of one’s cable industry peers. Inducted this year were:

JOHN M. EGAN JAMES P. MOONEY III TIMOTHY P. NEHER RICHARD PARSONS JOSH SAPAN AMY TYKESON Chairman Principal & Managing Partner Partner Senior Advisor President and CEO President and CEO Evolution Digital JLM Partners (deceased) Pilot House Associates, LLC Providence Equity LLC AMC Networks BendBroadband

This illustrious group had much to say and much was said about them.

JOHN EGAN “Great ideas require teamwork and execution to become successful. Our industry, the largest privately funded construction project in history, succeeded because everyone was focused on the customer’s experience. Operations franchised, marketed, raised the capital and built the networks. Vendors constantly innovated to increase capacity and improve the quality of the technology to allow programmers to create and develop new content and applications − all to expand and enhance the subscriber’s options. It was truly a race; no operator, vendor or programmer ever succeeded by slowing down or playing defense. What a thrill to have run this race for over 30 years.” - Excerpt from John Egan’s acceptance speech

JIM MOONEY “Jim’s biggest contribution was organizing some level of unity and then finding other industries that would support our political position; which ultimately led to the 84 Cable Act, which essentially deregulated the industry.” - John Malone

“His political skills were both a mix of how he could manage the process legislatively and how he could manage the Executive Committee and the Board.” - Bob Miron

“If that Act had not passed and become law, you could probably make a case that the development of the modern cable industry would have been slowed down for at least a decade.” - Decker Anstrom

(John Malone, Bob Miron, and Decker Anstrom on Jim Mooney’s contributions while at the helm of NCTA − Mooney tribute video)

Annual Report 5 TIM NEHER “I don’t think it’s an exaggeration to say that Tim may be the best thing that ever happened to Continental Cablevision. I think the overriding thing was he was able to negotiate deals and let the other person feel that they had won some significant part of it. I don’t think he ever ended a transaction where he wasn’t a better friend of the guy he was negotiating with than when they started.” - Amos Hostetter on Tim Neher (Neher tribute video)

DICK PARSONS “Dick has been successful for a long time in a variety of settings both in government and the private industry and the legal profession. He’s a man of great integrity; he’s a man of great intelligence. He doesn’t need for everybody to know he’s the smartest guy in the room, but he usually is.” - Glenn Britt on Dick Parsons (Parsons tribute video)

JOSH SAPAN “It’s a wonderful time in the industry – this second Golden Age of Television. Cable not only has superior broadband and emerging TV Everywhere, it has the most iconic shows on the screen. It is also filled with amazing people who, to my mind, built one of America’s great industries. People like Chuck and Jim Dolan, whose pioneering spirits launched quite a few firsts in cable. Chuck is really an inventor working inside our industry. I like to think of him as my personal sort of “godfather of soul”. Jim has given me opportunities at key points in my career and supported me through the good (which wasn’t so hard) and the bad (which couldn’t have been easy).” - Josh Sapan (Excerpt from acceptance speech)

AMY TYKESON “When I started out at 23, I had a hunch the cable business was going to be a fun place to work. I feel lucky to have had truly remarkable experiences in programming, operations and industry leadership. I appreciate the opportunities I have been given, the mentors I have had and the friends I have made. Reflecting back on 33 years in the cable industry, I feel pride for what we have accomplished through investment, innovation and corporate citizenry. We have strong roots, talented leadership and the best platform for our customers. With more gender diversity, with applied innovation by small and large operators alike and by showcasing the horsepower we have under the hood, we will be unstoppable.” - Amy Tykeson (Excerpt from acceptance speech) BRIAN LAMB Bresnan Ethics in Business Award recipient Also honored was Brian Lamb, Executive Chairman of C-SPAN Networks, who received the Bresnan Ethics in Business Award. Introduced by The Cable Center Board Chair, Jerry Kent as, “a driving force behind C-SPAN,” the following is an excerpt from Brian Lamb’s acceptance speech:

“The best thing about being here for this award is the name on it…10 years ago when Bill Bresnan bought the cable systems out there in the west; Montana, Wyoming, Utah and Colorado, he told me ‘When I build those systems I’m going to put C-SPAN 1, 2, and 3 in every one of them, and we’ll be out there together.’ We had the most fantastic week; we went to classrooms, to the people who ran the systems…The thing about Bill Bresnan, you just smiled when you saw him; talk about integrity.”

ANDREA MITCHELL Reflects on the Honorees and the cable industry Before Andrea Mitchell, NBC News Chief Foreign Affairs Correspondent and our evening’s emcee, commenced with the awards, she made these observations BRESNAN ETHICS IN about the awardees and the cable industry. “…in a quieter and equally profound BUSINESS AWARD way, the people we’re honoring tonight – and the cable industry – have also The Bresnan Ethics in Business Award changed the world. Cable has given a voice to diverse voices and viewpoints. honors outstanding men and women in You’ve created technologies that connect us…You offer a forum for all kinds of the cable industry who best exemplify people and places…Cable people have a great track record of taking risks and the standards upheld by Bill Bresnan, following their dreams. You don’t back down, despite obstacles that would including understanding and doing discourage less determined individuals. You find adventure and joy in your work, what’s right in the face of adversity and and you keep adapting and thriving in an environment that changes every day. upholding ethical leadership qualities in That’s a lot to be proud of.” everyday work situations.

THANK YOU TO OUR 2013 PATRONS Cox Communications Waller Capital Partners Penthera Partners BCI Broadband Jones International PK WorldMedia, Inc.

Annual Report 7 2013 Honorary Committee

Thank you for your service and dedication to The Cable Center.

GLENN A. BRITT LEO HINDERY, JR. Co-Chair Managing Partner Chairman and CEO InterMedia Partners, LP Time Warner Cable JERRY KENT MICHAEL T. FRIES Chairman and CEO Co-Chair Suddenlink President and CEO Liberty Global PAUL MAXWELL Media Business Corp. BRIDGET BAKER President TERRY MCGUIRK Baker Media Inc. Chairman and CEO Atlanta Braves CHAR BEALES President and CEO ROBERT MIRON CTAM: Cable & Chairman and CEO Telecommunications (retired) Association for Marketing Advance / Newhouse Communications MATT BLANK Chairman and CEO BOB STANZIONE Showtime Networks Inc. Chairman and CEO ARRIS BOB BROUSSARD President, Distribution LESLIE (LES) H. READ AMC Networks, Inc. Executive Director Cable TV Pioneers ANN CARLSEN Founder and CEO DAVID VAN Carlsen Resources, Inc. VALKENBURG Chairman ED CARROL Balfour Associates, Inc. COO AMC Networks, Inc. JOHN W. WALLER, III Waller Capital NICK DAVATZES CEO Emeritus DAVID ZASLAV A+E Networks President and CEO Discovery JOHN GODDARD Communications, Inc. The Goddard Foundation

The 2013 event was made possible with generous support from: • A+E Networks • Discovery Communications • One World Sports • Al Jazeera America • AMC Networks • ARRIS • BendBroadband • Bright House Networks • Continental Cablevision • C-SPAN • Evolution Digital • JLM Partners • Liberty Global • Suddenlink • Time Warner Cable DeSorrento Award

Justin DeSorrento Opportunity for Excellence Award

This award honors the memory of Justin DeSorrento, son of Cable Pioneer James DeSorrento, by identifying motivated students who are interested in entering the cable industry. The program funds paid internships, giving students the opportunity to learn about cable industry history, technology evolution, current issues, and to interact personally with senior-level cable industry executives.

Nine Students from Northern Virginia Community College received the DeSorrento Award this year (pictured here with Brian Lamb, 2013 winner of the Bresnan Ethics Award) and were given the opportunity to experience this year’s Cable Hall of Fame Celebration first-hand as student ambassadors. The students helped to greet, direct and check-in guests, as well as answer questions and interact with the cable executives. Professor Lucy Holsonbake’s students also attended panel discussions and toured the exhibits at The Cable Show; providing opportunities for the students to meet, listen, learn and network with top executives.

Annual Report 9 Barco Library

The Cable Center Intern Program Offers Young People a Chance to Learn about the Industry

The Cable Center is giving young people the opportunity to gain real-world The 2013 Cable Center Summer Interns. work experience and to discover more about the industry with its new Cable The interns assisted on a variety of projects, Center Summer Intern program. Formally launched in June of this year, the including helping the Barco Library program builds on the success of The Cable Center’s Student Ambassador catalogue and organize its digital collections. program, which provides university students the chance to help out and meet, The interns also produced a short video highlighting the start of the cable industry listen, learn and network with top executives at such events as the Cable Hall in the U.S. of Fame and the Cable Mavericks Masters Forum.

This summer, six young people assisted The Center on a variety of projects, including working in the Barco Library, home to the world’s largest collection of printed resources and equipment exclusively dedicated to the cable industry. The interns helped to catalogue and organize the digital media collections so that the library can better serve the public’s research needs.

“The Cable Center’s Internship program is an ideal way for young people to gain exposure to our dynamic industry and acquire meaningful work experi- ence,” said Larry Satkowiak, president and chief executive officer of The Cable Center. “It has been a pleasure to be able to work with such energetic and talented young people, and we look forward to continuing this program next Pictured: L-R: Patrick Kuhl, Wren year.” Schyler, Taylor Egner, Kellyn Henthorn and Nate Gaiter. One of the interns, Taylor Egner, used his background in computers to set up a Not Pictured: McKenzie Christman media archive file server for The Center. “The thing I enjoyed most about the internship program was the variety of experience I was able to get,” reported Egner. “I have been able to learn about all different aspects of the organization over the course of my internship, and I have gained a solid understanding of how a non-profit is organized and operated.”

Patrick Kuhl has spent his time this summer working in the Barco Library, in particular assisting to build the Robert Tarlton collection by organizing photos and other materials for future use on The Cable Center’s website. “This internship has helped me gain much-needed professional experience that will be invaluable to my career,” said Kuhl. “I have also been researching the early industry pioneers for a short video we are producing, and I would love to pursue this area further in the future.”

“The Cable Center has had the opportunity to work with so many outstanding young people, both as interns and student ambassadors, and we are thrilled to formalize and expand our Internship program this summer,” said Jana Henthorn, senior vice president of academic and industry outreach for The Cable Center. “The Internship program provides a great opportunity to learn more about the history of the cable industry by working in the Barco’s Library’s research archives, and helping to get our collections organized and catalogued.”

The Cable Center will begin to accept applications for its 2014 Summer Internship program next April. The Student Internship and Student Ambassador programs are part of The Cable Center’s DeSorrento Opportunity for Excellence Award, which honors the memory of Justin DeSorrento by identifying motivated students who are interested in entering the cable industry. The Customer Experience

The Cable Center’s continued efforts, through the James M. Cox Endowment for Customer Experience, resulted in positive strides for the industry in both established programs and new agendas. As a recognized thought leader in CEM, the Cable Center’s Customer Care Committee (C5) continued its work to strengthen relationships and provide a forum in which care executives are able to share best practices and gain insight regarding the customer experience.

In accordance with the goal to increase our focus on international collaboration in customer experience, we were pleased to welcome members from Liberty Global and Cablevision Argentina to the C5 family. The input from these companies was of great interest to the other members, fostering an open exchange of information which is one of the hallmarks of the C5 group.

The invitation-only group had its regular in-person meetings at The Cable Center in the spring and was hosted by Rogers Communications in Toronto in the fall. In April, members discussed topics ranging from cross-channel alignment, speech analytics and retention to public policy issues and business support systems consolidation. Outside presentations regarding speech analytics and the cost of service provided additional value.

October’s meeting brought further discourse regarding innovations, net promoter scores and analytics. The group has embarked on a research project, through The Cable Center’s Senior Fellows Drs. Ronald Rizzuto and Charles Patti, in an effort to develop CEM metrics and benchmarking results. A representative of the Bank of Montreal shared insights regarding “Innovations in Sales Effectiveness,” continuing the C5 practice of learning not only from each other, but also from outside the industry.

In further efforts to increase international collaboration, Senior Vice President of Academic and Industry Outreach, Jana Henthorn, initiated efforts at Cable Congress in London and CTAM Europe in Barcelona. Various meetings with the Deans of ESADE and IESE Business Schools; in addition to Liberty Global, Virgin Media and SCTE-UK, helped us establish The Cable Center as a leader in customer experience study. Our new friends were quite interested to hear about our re- search efforts and the relationships that were established will benefit all parties. Additionally, arrangements to present a panel at CTAM Europe 2014 were made, ensuring a continued international presence for The Cable Center.

Annual Report 11 A dinner hosted by The Cable Center’s partner, Sand Cherry, provided yet another opportunity to develop new “One of the most unique things relationships and strengthen existing ones. We continue our support of the Chinese Executive Media Management about the C5 is that it is within Program led by The Cable Center’s Senior Fellow, Dr. Ron- ald Rizzuto. industry and we share best Additional benefits were received from participation in a practices very openly, very media and legislative-focused cultural exchange with education institutions in Turkey. Cable industry representatives were given access to media conglomerates (both television and realistically and we also print) and also to the largest provider of cable. Meetings with members of the Turkish Parliament, (pictured above), were a challenge one another.” highlight of our participation in the exchange. Graham Tutton, Comcast Cable

“From an overall learning, exchanging ideas, gathering data and really looking to improve customer experience as an industry, the C5 does an extremely tremendous job for us.” Tapan Dandnaik, Mediacom Communications

Exclusive presenting sponsor of C5 2013 Annual Report Donor List

$100,000 to $249,999 $10,000 to $24,999 $1,000 to $4,999 $500 to $999 Anonymous Allscope Services, Inc. Alpha Technologies Anonymous Time Warner Cable The Anna and John J. Sie Patrick J. Bresnan National Geographic Channel Foundation Cable One $50,000 to $99,999 BCI Broadband CEA Associates AMC Networks CableLabs Fred W. Churchley, III Liberty Global CommScope Concurrent Computer Corporation Greg Maffei Cox Communications Cycle 30 Michael T. Fries Crown Media International Brian Deevy Motorola Mobility Foundation John D. Evans Jeffrey Delorme Nexidia Fox Channel Services Eagle Xm Lisa & Tim Robertson Raquel Gottsch Fashion and Design Television David Zaslav Granite Associates Jones International, Ltd. Jim Gray Florence & Paul Kagan $25,000 to $49,999 Harmonic MCTV A & E Television HBO Mediacom Communications Al Jazeera America Ion Media Networks J. Patrick Michaels, Jr. ARRIS Group NCTA Midcontinent Media Foundation BendBroadband Showtime Networks PK Worldmeida Bright House Networks StarTek Netcracker Technology Corp. Julian A. Brodsky Starz Entertainment Group RBC Capital Markets Cablevision Doris and David R. Van Valkenburg Leslie H. Read Charter Communications Viacom Rentrak Corporation CSG Systems Rogers Communications C-SPAN $5,000 to $9,999 Rovi Corporation Discovery Communications Davatzes Family Foundation Antal Runneboom John M. Egan Mosaik Solutions Samsung ESPN Media Networks Linda & Larry Satkowiak Samuel Howe Leo J. Hindery Ubee Interactive Sand Cherry Associates Ion Media Networks Anthony Stupore JLM Partners Joel Susel Pilot House Ventures Group Ted Turner Scripps Networks Interactive TV One Suddenlink Communications John W. Waller, III, Waller Capital Turner Broadcasting System Corporation Michael S. Willner Statement of Financial Position Audited statement December 31, 2013 and 2012

Assets 2013 2012 Cash and cash equivalents $731,976 $169,654 Pledges, accounts receivable, and prepaid expenses 805,808 1,053,988 Long-term investments 36,011,725 32,159,804 Property and equipment 18,479,123 19,005,304 Total assets $56,028,632 $52,388,750

Liabilities Accounts payable and accrued expenses $539,888 $362,357 Loan payable 4,000,000 4,000,000

Net assets Unrestricted net assets 14,572,610 15,056,730 Temporarily restricted net assets 8,678,982 4,878,131 Restricted net assets 28,237,152 28,091,532 51,488,744 48,026,393 Total liabilities and net assets $56,028,632 $52,388,750 Statement of Activities For the twelve months ending December 31, 2013 and 2012

Revenues 2013 2012 Contributions $187,15 0 $1,064,306 Program support 1,169,370 1,208,271 Event rental income 663,398 729,370

Total revenues 2,019,918 3,001,947

Expenses Program services 2,457,315 2,752,199 Management and General 2,059,399 2,255,651 Fundraising - 408,418

Total operating expenses 4,516,714 5,416,268

Net surplus/(deficit) from operations (2,496,796) (2,414,321) Investment income/(loss) 5,707,4 8 6 3,602,912 Other income/(expenses) 251,661 (114,882)

Net surplus/(deficit) $3,462,351 $1,073,709

Annual Report 14 3% 1% Cash Budget 2014

Sources of funds 1. Endowment and Fund Distributions $2,779,059 61.66% 35% 2. Special Events and Facility Revenue 1,570,000 34.84% 61% 3. Program Revenue 125,000 2.77% 4. Interest Income 32,800 0.73% Total sources of funds $4,506,859 100.00%

5% Uses of funds 2% 1. Staff Salaries and Benefits 1,531,965 33.99% 2. Direct Program Expenses 625,196 13.87% 12% 3. Administrative Expenses 737, 270 16.36% 34% 4. Special Events and Facility Expenses 747,431 16.58% 5. Building Expense 556,320 12.34% 17% 6. Interest Expense 64,800 1.44% 16% 14% 7. Capital Expenditures 243,877 5.41% Total uses of funds $4,506,859 100.00% The Cable Center’s Committees

Investment Committee Peter Derschang Brakes Plus, Inc. Jeff DeMond Vyve Broadband Steve Halvorsen Monticello & Associates Peter Kalan CSG Systems, Inc. Bob Lewis Lewis Enterprises, LLC Ron Rizzuto University of Denver Larry Satkowiak The Cable Center David Van Valkenburg Balfour Associates, Inc.

Audit Committee Brian Deevy RBC Daniels Thomas Puckett HPC Puckett & Co. Larry Satkowiak The Cable Center David Van Valkenburg Balfour Associates, Inc.

As of 12/31/2013

Endowment Summary December 31, 2013 and 2012

Endowments 12/31/2013 12/31/2012 Operating $12,759,701 $10,839,975 Magness Institute 8,692,301 8,000,775 Programming Institute 9,136,351 7,98 8, 55 0 Cox Endowment 2,638,794 2,380,383 Other 1,791,406 1,995,503 Total Endowments $35,018,553 $31,205,186

Funds Programming Funds 690,883 688,911 Building Funds 199,730 178,194 Total Funds $890,613 $867,105

Unrestricted and Holding $102,560 $ 87, 513 Total $36,011,726 $32,159,804

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