Comcast’s (CMCSA) Cable business has continued its growth streak. At the end of 2016, Comcast’s triple-play customers had risen 29% year-over-year to 28.5 million. The company saw the best figure for customer additions in its video business in the past ten years with net video customer additions standing at 161,000 at the end of 2016. Comcast had 22.5 million video customers at the end of 2016.
Comcast was asked about the key factors driving its cable business at the Morgan Stanley Technology, Media & Telecom Conference late last month. The company said that it believed that its X1 set-top box had been a key factor driving Comcast Cable’s business.
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In fiscal 4Q16, Comcast’s X1 set-top box had a penetration of 50%. It’s ultimately expected to reach a 75%–80% penetration over the long term.
According to Comcast, as the penetration of its X1 set-top box increases, ARPU (average revenue per user) and customer retention are also rising. Comcast added that its video users are opting for the DVR (digital video recorder) feature three times more than before and watching pay-per-view content almost twice as much.
Comcast’s high-speed Internet business has been another driving factor of Comcast Cable. Comcast has increased its Internet speeds 14 times in the past 12 years.
Comcast had high-speed Internet customer additions of 1.4 million at the end of fiscal 2016, the 11th consecutive year with more than 1 million net additions of high-speed Internet customers.