For Comcast, the shift to OTT is good for business despite not running a vMPVD service
It’s become a growing theme for traditional pay-TV companies to launch an OTT TV service. Dish started the trend in 2015 when it introduced SlingTV, its low-cost alternative to overpriced cable subscriptions, and AT&T soon followed in 2016 with DirecTV Now and followed it up with AT&T Watch, an even more affordable OTT TV service launched last month. Traditional pay-TV providers have started to launch these services in an effort to fill the gap left behind by cord-cutting. Despite the obvious benefits, Comcast doesn’t seem too concerned about launching a streaming TV service, even with having lost 136K Cable subscribers in Q2 2018.
[READ] Sling TV has Double the Subscribers of DirecTV Now, But AT&T is Hoping a Free Firestick Changes That
Instead, the company points to the success of its broadband business, which has been performing better than average, because of the fact that the more OTT services there are, the more important a reliable and fast broadband connection becomes. And Comcast is cashing in on this growing demand, experiencing its best broadband growth for Q2 in ten years.
Their broadband business generated $4.3 billion in 2Q18, up 9.3% and they added 260K broadband customers in the quarter. And its customers aren’t just subscribing to the company’s tier one internet service. 75% of Comcast subscribers now get 100 Mbps or faster service and the average Comcast customer now consumes 150 GB of data per month, the highest ever.
It wouldn’t be a wild move if Comcast decided to launch a streaming TV service. The company could likely benefit from it, especially if it can bundle the service with its broadband packages. But, for now, the company is satisfied with its progress in the broadband space.
“One of our strategies is to have diversification in such a way that as new technologies come, it’s not all or nothing and we’re benefiting more than I think we’re losing from that additional competition,” CEO Brian Roberts said in a call to investors. “I think it is a very, you know, dynamic time and we’re uniquely positioned as a company to benefit from these changes.”