Comcast and Time Warner Cable: Forget TV, it is all about broadband

16 thoughts on “Comcast and Time Warner Cable: Forget TV, it is all about broadband”

  1. Except wired broadband is at it’s peak and if they don’t get into mobile they will start to bleed customers once one of the 4 major carriers decides to go after the market.
    The fact that their product is horrible will only make things worse. Low speeds, insane pricing and data caps might work when there is no competition or regulators but ,with a bit of luck, that won’t last.

      1. Oh right. Like the cable companies don’t do whatever they want. Like have people like you shill for them on blogs.
        Tell me, exactly how would you “get into” the cable industry?

  2. You mentioned the margins for voice (91%) and video (55%), but what are the margins on data? I assume they are high as well?

    “You can see broadband is not only a much faster growing business, it also has higher gross margins” – Not sure I see that unless I’m missing where you mentioned the margins of data-only

    Also, even though broadband is growing faster, video is still a larger revenue generator than data, even in 2018.

    You made the point of adding voice to the data number to show that the revenue figures are similar, but then you lose your argument about growth. The combined video+data ’15-’18 CAGR is only 3% vs. the video CAGR of 2% over the same period

  3. FCC is a pawn and Comcast is evil.

    Battle at the highest levels of telecom/broadband/TV is the battle over radio spectrum.

    FCC too much of a political football for it to change at the federal level but I vote to tax the unproductive use of allocated spectrum at 1000% its market value. Unproductive = no use or city council-esque TV and radio.

    Small TV stations, radio stations, etc. shouldn’t have control of the spectrum.

    Let innovator’s take control (buy) of it.

  4. Om – good analysis, but I don’t see it quite as black and white that this is all about broadband. Comcast just came off its first quarterly gain in video subscribers in 6+ years, and knows how much X1 and its other product innovations contributed. With pay-TV a mature business, Comcast is betting it can actually steal back some share from telcos and satellite operators which have been tough competitors over the past 10 years. Comcast is blurring the distinctions between TV and online video in many ways. With TWC subs, Comcast gets many millions more addressable homes to make the case to, especially in NYC area where Verizon has been super tough on TWC.

  5. Yes I am reading about TV but you are right it is about broadband. Living in area without the luxury of broadband I am not sure it matters to me but I can see in the future peoples rates going up. They are already too expensive right now. I wonder if there is a point to were people cannot afford or will not pay for the cable.

  6. I worked at AOL when Time Warner bought them. It was all about broadband way back then, too. AOL had a year or so before that time begun their own DSL services (I was on the first support team for it). The merger was a horrible move for both companies (AOL was already starting to die, but the merger was like a lethal injection to a patient with a the beginning stages of cancer). This made AOL Time Warner into a monopoly that was unmanageable. I can’t see this merger being any better.

  7. Big brother has stepped in and secretly inserted itself into your home once again. Sad, that China is most likely the real owners over everything as it is now. I bet if someone did the research, Facebook will be part of this somehow.

  8. If you have ever spent time or lived in other countries… even ones that are considered very “backward” by us, you would know that the services we pay up the nose for are basically free everywhere else. The reason is simply competition and it is very cheap and so stupidly easy to subsidize. Only we idiot Americans would bend over for this sort of complete nonsense at the hands of our “greased;palm” special interest elected officials. Try going over seas even to very poor countries and be amazed!

  9. Gross margins don’t tell very much of the story about profitability, and no firm is going to shed a profitable line of business, such as TV, simply because it runs on somewhat lower gross margins than some other line of business. Google’s business, for example, is based on transactions – ad sales – with relatively slim margins that can be repeated billions of times a day.

    This is a very weak analysis of the triple-play cable business model and even weaker for Comcast’s variation on that model that happens to be heavier on the content creation side than other other cable companies are.

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