Comcast just announced a 49.7% increase in net income in the 3rd quarter of 2014 over the same quarter last year. Many are trying to use this number to say the traditional cable model is safe but when you break down the numbers it paints a dark picture for the cable arm of Comcast.
Comcast lost 81,000 cable TV subscribers in the 3rd quarter a slower loss than the 127,000 canceled subscriptions during the same time last year. Comcast did gain subscribers in one market that being their internet packages with a surprising 315,000 new subscribers.
It is becoming clear that cord cutters are helping Comcast business. Many cord cutters are switch to high speed internet packages when they cancel cable TV. Comcast has a US national average of 38.70Mb/s down compared to AT&T DSL average speed of 8.23Mb/s. If you want to reliably stream HD quality video cable internet is still your best option for the best speed.
Even looking at the cost per Mb Comcast is a cheaper option per Mb. Comcast cost $2.41 per MB but AT&T costs $13.92 per MB according to OOKLA’s speedtest.net.
Comcast is clearly trying to find ways to benefit from the changing market. “All companies are trying to figure out how to reach all customers,” said Brian L. Roberts, the chief executive of Comcast.
These numbers could be one of the driving factors behind HBO and CBS recent moves to offer packages for cord cutters. The cable market has been shrinking quarter after quarter and year after year. Some companies may be able to point to some short term growth the overall trend for cable is a negative but high speed internet has been showing solid steady growth.
No matter how you spin the numbers clearly cord cutters are having an impact on the market.