Comcast’s Stages A More Than $US40Billion Response To Netflix
Since the whirlwind rise of Netflix jump-started the online-TV revolution, media executives have been conflicted about how to respond.
These executives have been wondering if it is better to own must-see programming or the conduits that deliver it to millions of homes. Another burning issue has been if the focus should remain on the lucrative but declining U.S. TV market, or if they should instead focus on broadening their reach overseas where the business still has room for growth.
According to Comcast Corporation's Chief Executive Officer Mr. Brian Roberts, the answer is to do both. So, Comcast has won the bid for UK Sky. By taking SKY on board, Comcast has almost doubled its customer base. This is just what the corporation needs to begin competing with Netflix -a large following on both sides of the Atlantic.
Philadelphia-based Comcast will now deliver TV service to about 52 million customers in both the U.S. and European countries — including Italy, the U.K. and Germany. Comcast was already receiving 9 per cent of revenue from outside the U.S. Now with Sky on board, that number will jump to roughly 25 per cent.
Comcast executives have been in talks about potentially selling Sky’s content in the U.S. and NBC’s programming in Europe, and also creating original TV shows together. Comcast is hopeful that owning Sky will make them more money and will be instrumental in reducing its debt in a comfortable timeline.