Comcast Lost 757,000 Video Subs in 201016 Feb, 2011 By: Erik Gruenwedel
Comcast Corp. Feb. 16 said it lost 135,000 video subscribers in the fourth quarter (ended Dec. 31) and 757,000 video subs for the entire fiscal year.
The loss of video subscribers, which include premium channels and transactional video-on-demand, continues to undermine the cable industry as budget-conscious consumers seek to downsize monthly cable bills and seek lower-priced entertainment options such as Netflix.
Indeed, Time Warner Cable last month reported a loss of 141,000 video subs in its most recent quarter.
Comcast and TWC have responded to video sub declines and perceived threat of Netflix and kiosks by rolling out so-called "TV Everywhere" platforms that allow subscribers to access premium content on demand from multiple devices in and out of the home at no extra charge.
Regardless, the reduction in video subcribers hardly dented Comcast’s bottom line. The Philadelphia-based No. 1 cable operator added 414,000 combined video, high-speed Internet and voice customers in the quarter, bringing its overall tally to 48.4 million customers through the end of the year.
Net income topped $1 billion, up 4.7% from income of $955 million during the previous-year period. Revenue topped $9.7 billion, up 7.7% from revenue of $9 billion last year.
Comcast, which formally closed its $30 billion majority acquisition of NBC Universal last year, said it would begin reporting the media company’s results beginning in the first quarter of this year.