About Comcast Holdings Corporation

Comcast has its content and broadcasts it, too. On the content side, the company owns NBCUniversal, including the NBC TV network and movie studios Universal Pictures and DreamWorks Animation. Cable channels CNBC, MSNBC, and the USA Network are also under the Comcast tent. As for distribution, the company is one of the biggest pay-TV providers in the US with more than 28 million subscribers to one or more of its cable services. Its broadband internet service has nearly 25 million subscribers and its voice service has more than 11.5 million customers. Other Comcast properties include the Universal Studios theme parks and Telemundo, a leading Spanish-language TV network in the US.

Operations

Comcast generates revenue in five business segments, led by the cable communications service that accounts for about 60% of revenue. Then come the cable networks, about 15% of revenue, broadcast TV, more than 10% of revenue, and filmed entertainment and theme parks, a bit more than 5% each.

Comcast hasn't forgotten its hometown roots in Philadelphia. Through its majority-owned subsidiary Comcast Spectacor, the company owns Philadelphia's NHL franchise, the Flyers, as well as the team's arena, the Wells Fargo Center. The subsidiary also manages other venues used for sporting events and music concerts in Philadelphia, as well as related service businesses including Ovations Food Services and facilities management provider Global Spectrum.

Geographic Reach

Comcast has operations of one kind or another in all 50 states. Its cable communications operations are along the East Coast, in the South, the Midwest, the West Coast, and Pacific Northwest. The company owns and operates NBC-affiliate TV stations in the seven top markets in the country as well as three others in the Top 30.

Sales and Marketing

Comcast offers its services directly to residential and business customers through call centers, door-to-door selling, direct mail advertising, television advertising, internet advertising, local media advertising, telemarketing, and retail outlets. The company spends about $6 billion a year on advertising, marketing, and promotion.

Financial Performance

Comcast posted higher top and bottom lines in 2016, continuing a decade-long rise in revenue and a six-year increase in net income.

Revenue increased 9% to almost about $80 billion in 2016 from 2015. Cable communications revenue rose about 8% from more subscribers overall and more signing up for additional services. The average revenue per cable customer relationship increased to more than $148 a month in 2016 from about $143 a month in 2015. Revenue jumped about 20% at NBC and about 10% at the cable channels, boosted by the 2016 Rio Olympics. Revenue from the company's movie unit fell in 2016 due to a smaller, less lucrative slate of releases. High performers for the year were The Secret Lives of Pets and Sing. Theme park revenue rose with help from the acquisition of 51% of Universal Studios Japan in late 2015.

Comcast reported that net income rose about 7% to some $8.7 billion in 2016 from 2015 as revenue kept pace with costs.

Cash flow from operations in 2016 rose to about $19.25 billion from about to $18.8 billion in 2015 due to higher net income and a change in working capital.

Strategy

To stanch the flow of video cable customers from its services, Comcast has bundled multiple services and offered slimmed-down cable deals (fewer, more selective channels) to attract and retain customers. The company also has improved its customer service, reducing wait times, increased on-time arrivals, and added representatives to its customer call centers. The changes might be paying off: Comcast added more than 160,000 cable subscribers in 2016 after losing some 230,000 cable customers in 2014 and 2015. The company and other cable providers have lost customers -- called cord cutters -- who prefer to get their entertainment from streaming services such as Netflix, YouTube, Hulu, and other over-the-top services.

Another factor has been Comcast's X1 platform, a cloud-based set-top box that offers live video, on-demand video, and digital video recording. It stores customers' recordings in the cloud, which add to the amount they can record. The service is available to Comcast customers across the country. Besides added revenue from the X1 services, Comcast looks for additional advertising revenue by using data gained from viewer habits to customize ad targeting.

Adding to its array of services, Comcast in 2017 rolled out wireless phone service to its internet customers. Called Xfinity Mobile, the service offers several calling plans. Comcast rents space on Verizon's network, but the service is available over Comcast Wi-Fi.

Mergers and Acquisitions

In 2016 NBCUniversal acquired DreamWorks Animation SKG Inc., a maker of animated movies and TV shows, for about $3.8 billion. This acquisition of the maker of films such as Shrek and Kung Fu Panda series was made to bolster Comcast's offerings for children's pictures for theatrical release.

Comcast acquired 51% of Universal Studios Japan for $1.5 billion in 2015. The deal gives Comcast control of the Universal theme park in Osaka, Japan.

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Comcast Holdings Corporation

1701 John F Kennedy Blvd C100
Philadelphia, PA 19103-2899
Phone: 1 (215) 665-1700

Stats

  • Employer Type: Public
  • Exec V Pres-treasurer: John Alchin
  • Senior Vice President cao controller: Lawrence Salva
  • Director of Business Operations: Sean Smith
  • Employees: 31,000

Major Office Locations

  • Philadelphia, PA