Comcast’s recent third quarter revenue earnings have gone against the recent tidal wave of financial loss sustained by cable and satellite networks thanks to its growth in its high-speed internet and streaming service.
The cable operator and owner of NBCUniversial television reported an 11 per cent increase in revenue to nearly $18.7bn. The results provide an optimistic forecast for the future of Cable and Satellite companies who have suffered greatly as a consequence of the growing “cord-cutting” trend fuel by cheaper the online subscription services such as Netflix.
Macquarie analyst, Amy Yong, told the NY Times that the results illustrated a less pessimistic future for TV networks and said it showed “the business doesn’t erode as quickly as the market thinks”.
Brian L. Roberts, Comcast’s chief executive, said the company’s strong results were a result of it “giving consumers what they want and having a unique set of assets to do that”.
The success can be largely attributed to Comcast’s focus on investing in its X1 catch-up service which accounted for around 60 per cent of its video connections during the third quarter. Its internet high-speed Internet group also helped propel the business with 320,000 new subscribers signing up during the quarter.
Tapping into the Netflix-like subscription service, Comcast is also preparing to introduce its Stream service. It will be priced at $15 a month and will offer a bundle of broadcast networks and the premium cable network HBO without the need to have a broader cable package.