Comcast Corporation (CMCSA)’s Core Business Comes to the Rescue
Comcast Corporation (NASDAQ:CMCSA) does not seem to be bothered about cord cutting. The company is not worried about the growth of the streaming video-on-demand service that are catching rapidly among the mobile users. The primary reason for that is that its core business has enough strength to come to its rescue at any given point in time though it might be concerned over the Pay-TV household drop in the next few years. Its execution of the X1 platform enabled it to have a much-needed flexibility. That was quite evident from the way it was able to add nearly ten million Internet subscribers since 2007. There is also big potential to add further in the upcoming years.
Efforts To Limit Subscriber Losses
If only Comcast Corporation (NASDAQ:CMCSA) could stand firm to face the heat of the competition, it was because of the diversified portfolio and its core business. The company was trying to compensate for the weakness in its broadcasting and cable networks with its filmed entertainment, high-speed Internet and the growing video sales. Management has been taking initiatives to limit the subscriber losses to beat the heat on the video subscriber base. The loss of net subscriber was only 48,000 in the third quarter, which were significantly higher 81,000 in the second quarter. That meant that its efforts to attract the customers with double-product bundles reached well at the subscribers’ level.
Similarly, Comcast Corporation (NASDAQ:CMCSA)’s revenue witnessed 3% uptick in the third quarter to $5.3 billion. The biggest factor to help the company retain the viewers was the product bundling apart from the tactics to lift its revenue per subscriber. For continuous growth, the Cable service provider executed X1 platform, as well as, XFINITY. Streaming video-on-demand services are also getting crowded as more parties are entering the fray. Also, Alphabet Inc (NASDAQ:GOOGL)’s YouTube platform was looking to license its content. Others like HBO Now, Netflix, Inc. (NASDAQ:NFLX), and Amazon.com, Inc. (NASDAQ:AMZN) were successful in attracting the subscribers. It was also clearly that everyone was trying to monetize their current resources to the maximum gain.
Pay-TV Household Count To Drop
Comcast Corporation (NASDAQ:CMCSA) might have to consume some bad news too even while it was trying to expand its operations. For instance, eMarketer data suggested that pay-TV household numbers will fall to 96.4 million from 100.7 million by the year 2019. However, it cannot be termed as a major thing since the drop will be less than 5% and the company is expected to retain its dominant position in the industry also. Additionally, the loss of subscribers was not restricted to the company and was a widespread one in the industry. Therefore, the unfavorable impact is predicted to be the minimum.
Comcast Corporation (NASDAQ:CMCSA) is trying to keep viewers engaged. For instance, its XFINITY on-demand provided top 20 TV shows episode during the last week of November. That also ensured that the there was the minimum impact when it came to the top line due to a loss of subscribers. Another factor to be noted is that the cable service provider is yet to deploy its X1 platform to all its subscribers. Currently, the company seemed to have focused only on one-fourth of its customers. Its beta testing features should also enable the subscribers to get alerts from different channels.
Comcast Corporation (NASDAQ:CMCSA) is also planning to make its Stream TV, IPTV service, available to all its XFINITY Internet customers. The company is charging $15 a month currently and the service is available only in selected regions. Its features were much similar to big broadcasters in the industry like HBO providing access to thousands of VOD titles. Similarly, the increasing data consumption would ensure that there is enough demand for high-speed Internet, which was one of the few opportunities available to take advantage of it. The company appears to be well-placed to use its resources for maximizing its gain.
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