Comcast’s Transition to Streaming Will Provide Some Needed Growth Opportunities


Comcast’s full-year results obscure the contrast between the media conglomerate’s declining legacy video business and its growth segments. And the acquisition of Europe’s biggest pay-TV group Sky at the end of 2018 further blurs the picture.

For instance, in 2018, Comcast reported revenue growth of 11.1% and operating growth of 5.5%. But Sky contributed almost 50% of that revenue growth. And more importantly, the video segment’s revenues, which represented 23.8% of the total revenue in 2018, fell by 1.8%. The company is facing a secular decline of its video business, despite the lower-than-expected decrease during Q4. The video segment lost 344,000 residential subscribers during 2018.

By contrast, several other businesses more than offset the decline of the video segment. High-speed internet, business services, and advertising grew by 9.3%, 10.7%, and 14.1%, respectively. Together, these growing areas exceed the video segment’s revenue. Also, NBCUniversal, Comcast’s media and entertainment segment, grew its revenue by 8.9%.

With this context, management announced the launch of a streaming service by the first half of 2020. The goal is to offset the impact of the cord-cutting momentum and capture growth. Despite the decline of the important video business, this forced transition will have some positive impact.

Read more:


Please enter your comment!
Please enter your name here