What’s New within the US Media Industry: Netflix, Comcast, and Disney PART 13 OF 20
Faster Internet speeds
Comcast (CMCSA) just lately introduced Internet pace upgrades in a number of of its markets in an obvious Internet pace arms race with AT&T (T), Charter Communications (CHTR), and different ISPs.
The firm had introduced that starting in March 2017, its Houston, Texas, prospects on its Performance Internet plan would take pleasure in obtain speeds of as much as 70 Mbps as an alternative of the earlier most of 50 Mbps. This pace enhance didn’t come at an extra price to the purchasers. The firm had earlier bumped up speeds for Houston prospects on its Performance Pro and Blast Pro Internet plans.
The Internet pace will increase have been made attainable by the billions of (UUP) that Comcast mentioned it has pumped into upgrading its networks throughout the nation.
High-speed Internet revenues
Comcast’s Internet pace upgrades are strategic in a number of methods. Demand for high-speed Internet entry is on the rise, thanks largely to OTT (over-the-top) video services and IoT (Internet of Things). By providing sooner Internet speeds, Comcast is placing itself in a greater place to develop its broadband revenues by driving OTT and IoT traits.
Comcast’s high-speed Internet revenues rose eight.5% to ~$13.5 billion in 2016. The chart above reveals the corporate’s income sources by phase.
Offsetting pay-TV losses
Faster Internet speeds may additionally assist Comcast offset losses in its pay-TV enterprise, which has come beneath strain from different video companies reminiscent of Netflix (NFLX) and Hulu.
Growing advert revenues
Superior Internet speeds may draw extra prospects to Comcast’s broadband service, probably permitting the corporate to collect extra buyer knowledge for focused promoting. The US Senate just lately voted to repeal a regulation that required ISPs to acquire buyer consent earlier than they may use knowledge on their Internet conduct to promote adverts.
