Cable television

Cable TV is dying, but cable companies are thriving


Cable TV is dying. But if you look at Comcast’s revenue report released today, it’s clear that cable companies thrive nonetheless.

Over the past year, the company reports that it has lost approximately 155,000 pay-TV customers. But during that same period, pay-TV customer revenues actually increased by one percent due to the price hike. It’s a sign that Comcast isn’t really trying to make pay TV a long-term business proposition. The company is not lowering prices to try to beat the reduced customer demand, it accepts that it will continue to decrease and it is simply trying to squeeze the customer base to its fullest value.

But the really good news for America’s largest cable operator is that broadband internet revenues have grown 9.6% and they have over a million more billable internet customers than there were. a year.

(Comcast)

Comcast still has more TV customers than broadband customers, but those numbers are getting closer and the lines are expected to cross very soon.

All of this makes the pay-TV industry a rather unusual case of technological transformation. There is a huge change going on, but very little disruption. The companies that own the broadband Internet infrastructure are basically the same companies that own the pay television infrastructure. And the nature of this type of utility type industry is that there isn’t a lot of competition, so the pace of change tends to be relatively slow. Comcast spent an astonishing $ 1.64 billion on capital investments in the third quarter, but also an equally impressive $ 1.33 billion on dividends and share buybacks.