Technology

Comcast Now Has More Internet than Cable Customers

Published

9 years ago

May 4, 2015

Reporter II

(AP Photo/Matt Rourke, file)

Tali Arbel, ASSOCIATED PRESS

NEW YORK (AP) — Just before its $45 billion deal with Time Warner Cable collapsed over regulators’ fears about a giant cable company’s control over the Web, Comcast was racking up more Internet customers.

For the first time, the country’s largest cable provider, which also owns NBCUniversal, has more Internet subscribers than cable subscribers, Comcast executive Neil Smit said during an earnings call Monday.

Broadband subscribers surpassed cable this quarter. As of the end of March, there were 22.4 million customers for each.

The advent of streaming TV is reshaping the cable industry. It is slowly dripping video subscribers while Netflix adds more, and several online TV alternatives have launched in recent months. Meanwhile, costs are rising for the TV, movies and sports that cable companies transmit — Comcast’s programming expenses rose 7.8 percent last year, to $9.8 billion. Combining with Time Warner Cable might have helped Comcast gain leverage against media companies in negotiations over content costs.

Selling Internet access, however, is highly profitable. SNL Kagan, a market research firm, estimates that cash flow margins for Internet were 60 percent for cable companies at the end of last year, while video margins were 17 percent.

In the January-March period, the Philadelphia company added 407,000 high-speed Internet customers, the most since early 2013. It shed 8,000 video customers.

Regulators were concerned about the power that Comcast and Time Warner Cable together would have had from all those Internet customers — more than half of the country’s broadband subscribers under the government’s definition of minimum broadband speed. The government worried that the combined company might harm online video competitors that need Comcast’s pipes to get to consumers. Comcast walked away from the deal last month.

More people are signing up for Internet, but cable bills are bigger as companies pass on content costs to subscribers.Comcast said Monday that revenue from video customers rose 3 percent to $5.3 billion, while Internet revenue rose 10.7 percent to $3 billion.

A traditional TV package of hundreds of channels can cost $70 to $100 a month; on Comcast’s website, broadband by itself is advertised for $67 a month. It also offers higher-priced tiers of service that include higher speeds. But many people buy Internet and TV in packages that give upfront discounts. Comcast said Monday that 69 percent of customers pay for at least two services, and 37 percent pay for phone, Internet and TV.

Some companies are trying new types of services. Verizon’s FiOS has a customizable, “skinny” bundle that lets you choose groups of channels you want after a basic tier. ESPN is suing because it’s been relegated to an optional sports package under that plan, though. Satellite TV company Dish’s Sling TV service streams channels online. Media companies are experimenting, too — HBO is offering a stand-alone online service for people who don’t pay for cable. And Apple is reportedly getting closer to launching a TV service.

Comcast does have a skinny bundle of its own in “Internet Plus,” which sells broadband, about 25 channels including broadcast networks and HBO for $70 to $75 a month after discounts end. But you can’t choose your channels.

Comcast executives on Monday said that there is “room for growth” with adding more Internet customers but brushed off questions about launching an online-only TV service.

Comcast reported that its net income rose 10 percent to $2.06 billion, or 81 cents per share, in the first quarter, while revenue rose 2.6 percent to $17.85 billion.

Revenue from the cable division, which includes phone, TV and Internet service for homes and businesses, rose 6.3 percent to $11.4 billion.

Revenue from NBCUniversal fell 4 percent to $6.6 billion. The division includes NBC; cable networks like Syfy, E!, Bravo and USA; the film studio Universal Pictures and theme parks. Advertising revenue fell for NBC and the cable networks.

Shares rose 2.3 percent to $59.77 in premarket trading.

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Follow Tali Arbel at http://twitter.com/tarbel.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Attorney General Rob Bonta, Oakland Lawmakers, Introduce Legislation to Protect Youth Online

At a press conference in downtown Oakland on Jan. 29, Attorney General Rob Bonta joined Sen. Nancy Skinner (D-Berkeley) and Assemblymember Buffy Wicks (D-Oakland) to announce two pieces of legislation designed to protect children online. The bills are Senate Bill (SB) 976, the Protecting Youth from Social Media Addiction Act and Assembly Bill (AB) 1949, the California Children’s Data Privacy Act.

Published

2 days ago

April 16, 2024

Oakland Post

From left to right: Sen. Nancy Skinner (D-Berkeley), Attorney General Rob Bonta and Assemblymember Buffy Wicks (D-Oakland) at a press conference introducing legislation to protect young people online.

By Magaly Muñoz

The bills are Senate Bill (SB) 976, the Protecting Youth from Social Media Addiction Act and Assembly Bill (AB) 1949, the California Children’s Data Privacy Act.

Skinner authored SB 976, which addresses online addiction affecting teenage users, while Wicks’s bill, AB 1949, takes on big tech by proposing data privacy and children rights protections.

“Social media companies unfortunately show us time and time again that they are all too willing to ignore the detriment to our children, the pain to our children, the mental health and physical challenges they face, in order to pursue profits,” Bonta said.

SB 976 would allow parents to control the nature and frequency of the content their under-18-year-old children see on social media. Notifications from social media platforms would also be paused from midnight to 6 am and controls would allow parents to set time limits on their children’s usage based on their discretion.

Skinner stated that the longer that kids are on their phones during the day, the higher the risk for depression, anxiety and other related issues.

The bill would also push to get rid of addictive media that is harmful for young women and girls, specifically image filters that mimic cosmetic plastic surgery.

Bonta and 33 other attorney generals had previously filed a lawsuit against Meta, owner of the popular social media applications Instagram and Facebook. The filing claims that the company purposefully uses algorithmized content that harms younger audiences.

“Social media companies have the ability to protect our kids, they could act, but they do not,” Skinner said.

The Child Data Privacy Act would strengthen existing protections for data privacy under the California Consumer Privacy Act (CCPA). The lawmakers argue that the law does not have effective protection for those under 18 years old.

Wicks stated that the bill would forbid businesses from collecting, using, sharing, or selling personal data of anyone underage unless they receive informed consent, or it becomes necessary for the purpose of the business.

Wicks added that the acts would make it so that a search on the internet like “How do I lose weight?” would not result in dieting pill advertisements targeting youth, which, some experts report, could be harmful to their mental and physical health.

“In a digital age where the vulnerabilities of young users are continually exploited, we cannot afford to let our laws lag behind, our children deserve complete assurance that their online experience will be safeguarded from invasive practices,” Wicks said.

Supporters of the two acts say they have gained bipartisan support issue, but the authors and Bonta expect them to be met with pushback from the affected companies.

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Unleashing the Power_ Discover the The Thrills…F-TYPE Convertible

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4 months ago

December 18, 2023

Oakland Post

Performance & Handling
Powered by a robust 5.0 Liter Supercharged 8 Cylinder Gas Engine, the F-Type R75 doesn’t just purr; it roars with a mighty 575 horsepower and 516 lb-ft of torque. Coupled with an 8-speed Automatic Transmission, the car offers an exhilarating drive that is both fast and smooth. The All-Wheel Drive system ensures excellent traction and stability, making it a joy to handle in various driving conditions. The Electric Power Assisted Steering and JaguarDrive Control with Selectable Driving Modes add to the car’s agility, providing a driving experience that is as intuitive as it is thrilling. Additionally, the Adaptive Dynamics and Electronic Active Differential with Torque Vectoring by Braking enhance the car’s responsiveness, making every turn a testament to its engineering prowess. Unique to AutoNetwork.com.

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Elevate Your Ride…

Join us for a virtual car’s best-detailed walkaround of the sleek and stylish 2024 Jaguar F-TYPE AWD convertible. Get an up-close look at the exterior design, interior features, and performance capabilities of this luxury sports car. From its powerful engine to its advanced technology, this video will give you a comprehensive overview of what makes […]
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4 months ago

December 18, 2023

Oakland Post

Join us for a virtual car’s best-detailed walkaround of the sleek and stylish 2024 Jaguar F-TYPE AWD convertible. Get an up-close look at the exterior design, interior features, and performance capabilities of this luxury sports car. From its powerful engine to its advanced technology, this video will give you a comprehensive overview of what makes the F-TYPE AWD convertible stand out on the road. Unique to AutoNetwork.com.