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Cable Cutters Boost Comcast Profits
Comcast has revealed that for the first time in company history they have more broadband customers than they do TV customers. In a story covered by just about everybody, Comcast Cable President Neil Smit said on a conference call that in the current period "broadband [customers] have in fact surpassed video."
Comcast reported $2 billion in profits for the first quarter, a 10 percent increase over the same period a year ago. The improved earnings were largely built on robust growth in its high-speed Internet business. Revenue increased 2.6 percent to nearly $18 billion. Profit and sales topped analysts' estimates as the broadband division posted its strongest revenue growth in more than four years. Comcast continues to generate significantly more revenue from its video business than from broadband. Video revenue was $5.3 billion for the quarter, compared with $3 billion for high-speed Internet. But the rapid growth of broadband more than offset a loss of 8,000 video customers in the first quarter, which compared with the addition of 24,000 cable-TV subscribers a year earlier.
However, there may be more "cable cutting" going on than appears at first glance. According to the Wall Street Journal [paywall]:
The popularity of "Skinny Bundles" offerings poses a threat to TV channels, because any skinny bundles necessarily leave some channels out. The trend of "cord-shaving"—people downgrading to cheaper TV subscriptions with fewer channels—is closely watched in the industry, as it has contributed to declines in the reach of many major channels into American homes.
The US is moving to on-demand streaming, a trend we've all suspected. This is a game changer, because it changes the way the industry is financed, how programming is developed, and sold. It suggests more TVs will be "smart" TVs in the future, and there will be even faster broadband connections.
Personally I suspect it signals that people are unwilling to sit through an ever increasing number of commercials. That leaves unsaid what financing arrangements will prevail in the future. Would the patronage proponents actually see a real large scale trial? Or would pirates simply have a field day? And, yes, Frojack is still worried that we don't have enough IP bandwidth to support this. But apparently, that's just me.
After Merger Failure, Comcast to Boost Customer Service
In an article in Variety, Comcast CEO Brian Roberts promoted the promotional storefront Studio Xfinity concept and denied the company's customer service reputation had an impact on the regulatory block of the merger with Time Warner Cable. Nevertheless, Comcast will be adding thousands of new customer service positions in three new contact centers:
While Roberts made a point of noting that customer service metrics have been improving for some time, opponents of Comcast's proposed merger with Time Warner Cable hammered both companies for their reputations with consumers. Comcast and TW Cable scuttled the merger after it became clear that federal regulators would move to block it, but Roberts said that he was uncertain whether customer service issues factored into the government's thinking.
"In the end, I don't know," he said. "You would have to ask the decision makers, but I think irrespective we have been on this journey for a while. Probably my own view, deep down, it didn't. It wasn't determinative." [President and CEO of Comcast Cable Neil] Smit said, "Irrespective of deal or no deal, this is the right thing to do for the business. We are very committed to it for that reason. It is the right thing to do."
Comcast also will open three new customer support centers in Albuquerque, N.M.; Spokane, Wash.; and Tucson, Ariz., with 2,000 employees. Other features include an Uber-like feature that enables customers to track the location and arrival of their technician in real time and then rate the experience — a move to try to turn around perceptions of "the cable guy."
SoylentNews covered the fall-through of the merger less than two weeks ago.
(Score: 5, Interesting) by anubi on Thursday May 07 2015, @03:39AM
When I am paying for content, and they still annoy me with ads, I consider it a theft of my time, just as "they" consider copyright violation a theft of their product.
Neither one of us are getting what we want.
I whine about ads. They whine about piracy. They develop laws and technology to force my compliance. I find other things to do that does not involve "them".
While all the time they seem to utterly miss the point that the product they are selling is "entertainment".
By far, the most effective advertising would be product placement - and give the show away!
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]
(Score: 0) by Anonymous Coward on Thursday May 07 2015, @12:16PM
> By far, the most effective advertising would be product placement - and give the show away!
You say that out of ignorance. Even with commercials and subscription fees product placement regularly goes over the top. The smart ones just put the product discretely on the edge of the frame (like pop chips on big bang theory) the obnoxious ones make it a plot point (Cougar Town spent an entire episode in a Target store). Make that the sole form of revenue and all but the cheapest shows and the most popular shows will be so packed with product placement that there will be no room for anything else.
(Score: 2) by dyingtolive on Thursday May 07 2015, @01:49PM
I feel like the commercials just got turned into sales calls. I have my cable internet company (Charter) calling me once every couple months begging me to sign up for other services I won't use. I don't mind much though. Kind of miss talking to people sometimes. Call yesterday went something like this:
C: "Hi, I was wondering what you're using for your TV service."
Me: "Nothing really. Don't actually watch any shows or anything."
C: "Well, is there anyone else in your household that would be interested?"
Me: "Uh... I... could... ask the dog? I mean, I'd have to get a TV also."
C: "You don't have a TV... very well. I assume you use a cell phone? Do you have a backup plan for if it gets lost or broken?"
Me: "You know, I never really thought about it. I mean, there's the mail service, I guess. And email. Other than that, not really. I'd probably just get another one."
C: "Oh, okay, well, would you like to spend a couple hundred dollars on a new cell phone, or if you would rather, we can set you up with our phone service which gives unlimited blah blah for 19.99/mo."
Me: "Uh, give me a second. (loudly muttering my way through the math even though I know the answer) No, I can generally keep a cell phone alive longer than 10 months at a time. I think I'll pass. Thank you for the offer though.
Thing is, I MIGHT actually be interested in cable TV service, if I could pick channels and pay appropriately for them. I have no use for 90% of them, and don't want to have to flip through Christian/shopping/reality/news stations while trying to get to the three or four interesting ones.
Don't blame me, I voted for moose wang!
(Score: 2) by schad on Thursday May 07 2015, @04:07PM
My land-line phone is better at being a phone than my cell is. Conference calls I'm in almost always go to my land-line. Usually I just turn on speaker, which is far superior to my cell's attempt at that feature, and stand it on my desk, which you can't really do with most cells. It's much better when held to my ear, too. And because it's got actual, physical buttons, I can easily toggle mute on and off by feel alone, without having to take the phone away from my ear.
With that said, if work weren't footing the entire bill for it, I doubt I'd have a land line.
(Score: 1) by anubi on Friday May 08 2015, @03:30AM
That's the same reason I still have my land line.
At my age, I don't see all that well anymore. I am so accustomed to my old Western Electric 2500 series phone that I can pick it up and dial it by feel alone. I do not even look at it while dialing. I know where the switches are by feel alone. If I get it in my hand, I can take it from there. Even those 3AM calls.
And, because the thing gives me live audio feedback, I know what each button sounds like, and if I misdial the number I want, I nearly always catch it before I place a useless call.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]