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Cable Companies Shifting Emphasis From TV

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Aug 2, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Cable Companies Shifting Emphasis From TV - WSJ.com (click for full article)

    "The two largest cable operators are looking to an unlikely source of inspiration: Google Fiber, their newest formidable competitor.


    Time Warner Cable Inc. Chief Executive Glenn Britt and Comcast Corp. Chief Executive Brian Roberts separately said this week they see Google Inc.'s nascent one-gigabit communications network in Kansas City as a "laboratory" for encouraging new Internet services that will drive the adoption of faster broadband tiers-ultimately benefiting their own businesses too.


    Mr. Britt's comments came as Time Warner Cable posted an 8% gain in second-quarter profit, largely driven by growth in its broadband business that offset losses of cable-TV subscribers.


    Responding to softness in its video business, Time Warner Cable has focused on marketing its broadband without the expensive TV product attached. The company said Thursday the number of customers subscribing only to broadband-without cable TV and voice-increased 28%, from a year earlier.


    On a conference call with analysts Thursday, Mr. Britt described Google's service as exploring "what we could do as a society with more bandwidth," which is "a good thing, not a bad thing" for business."
     
    Last edited: Aug 3, 2012
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    Americans are canceling their pay-TV subscriptions in droves - San Jose Mercury News (click for full article)

    "NEW YORK -- Stubbornly high U.S. unemployment, a weak housing market combined with a mature business prone to regular programming blackouts has seen more than 400,000 American homes drop their pay-TV service since the start of the year.


    DirecTV, the No. 1 U.S. satellite TV provider, revealed its first ever quarterly customer losses on Thursday, with some 52,000 homes dropping the service in the second quarter. That was more than analysts expected from a company long seen as the best run video provider in the industry.


    Also on Thursday, Time Warner Cable, the No. 2 cable provider, said it lost more subscribers than analysts expected with 169,000 customers leaving the service. While a small percentage of Time Warner Cable company's 12.3 million total customers, this is a 10th straight quarter of customer losses.


    "Basic video subscriber losses aren't getting better," said Bernstein Research analyst Craig Moffett of Time Warner Cable. He said in a client note that the company had done all right overall but "it is hard to shake the perception of an opportunity lost."


    The biggest U.S. TV distributor, Comcast, lost 176,000 video subscribers, which was considered an improvement as the rate of losses was better than recent quarters. Of the big four distributors, Dish Network, the other major satellite provider, said it lost just 10,000 subscribers, also considered an improvement."
     
    Last edited: Aug 2, 2012
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    If you read the headline from the article in my previous post - you might think that Comcast is having rough times - while the popular cord-cutting alternative "Netflix" is raking in a bundle.

    This couldn't be further from the truth though - as there are other dynamics in play effecting the stock prices of those 2 companies. Yes Comcast lost TV subscribers - but they're raking in a bundle from their broadband network. And Yes Netflix has a lot of subscribers - but their costs have been rising.

    First lets's take a look at Netflix stock. The 52 week high is $261.50 and the 52 week low is $53.29. Netflix stock closed today at $53.87 (right near the 52 week low):

    http://www.google.com/finance?client=ob&q=NASDAQ:NFLX

    http://www.latimes.com/entertainmen...t-netflix-stock-drop-20120725,0,1031167.story

    ----------------------------------------------------------------------------------------------------

    Now for a look at Comcast stock. The 52 week high is $34.46 and the 52 week low is $19.19. Comcast closed today at $34.12 (right near the 52 week high):

    http://www.google.com/finance?client=ob&q=NASDAQ:CMCSA

    http://www.multichannel.com/article/488012-Comcast_Stock_Soars.php
     
    Last edited: Aug 3, 2012
  4. Spidershowl11

    Spidershowl11 New Member

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    Internet is the future and the number of broadband subscribers has been increasing rapidly. Recently Comcast one of the largest cable operator reported higher second-quarter profits in terms of its broadband sales. Time Warner another cable major cable operator reported that the number of customers subscribing only to broadband-without cable TV and voice-increased 28%, from a year earlier. The company's video revenue was down 1% a year earlier while broadband revenue was up 7.2%.
    If you are given an option to watch TV through internet and at the same time browse, why would people go for pay-TV separately?
     

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