With cord-cutting on the rise, Comcast’s broadband business sees significant gains
While the number of viewing options cable TV provides is nothing short of astounding, the harsh reality is that cable companies have been price-gouging consumers for years. Even The Onion got in on the fun a few years back with a pointed headline that read: “Nation’s Cable Companies Announce They’re Just Going To Take £100 From Everyone.” With cable prices on the rise, streaming services like Hulu and Netflix have been steadily chipping away at the cumulative number of cable TV subscribers.
In turn, we’ve seen industry veterans like DirecTV roll out more wallet-friendly services, with DirecTV Now being one such example. And while many cable companies are seeing their subscriber numbers take a hit, Comcast arguably finds itself in a win-win situation on account of its broadband service. With cord-cutters on the rise, the need for high-speed internet increases accordingly, and Comcast is well-positioned to pick up the pieces.
So while Comcast’s tally of cable subscribers has fallen for three straight quarters (33,000 subscribers left just last quarter), the company still posted a solid earnings report thanks to an influx of new high-speed internet subscribers.
Underscoring its growing dependence on high-speed internet service for growth, Comcast is boosting web speeds and rolling out new features that let customers personalize their home Wi-Fi networks, allowing them to pause access during dinner or bedtime.
Comcast is also branching out into the wireless business and has signed up a total of 380,000 customers for Xfinity Mobile, which became available across its service area in August.
All told, Comcast during the quarter gone by posted revenue of £21.9 billion, a solid increase of 4.2% compared to the year-ago quarter.