Comcast’s deal with Snap
Earlier this year, Comcast (CMCSA) struck a deal with Snap (SNAP) to produce content for its online platform. Now it seems that Comcast’s content on Snapchat is doing exceedingly well. According to an Axios report from August 18, 2017, Comcast’s NBCUniversal’s show for Snapchat, Stay Tuned, has already been watched by 29.0 million unique viewers in a month. According to the report, even though Snapchat uses a different method to measure a show’s popularity than television ratings, the popularity of the news show could still not be disputed.
It indicates that Comcast’s Cable Networks’ bid to produce content for online platforms is paying off. Comcast indicated at its fiscal 2Q17 earnings call that its deals with online platforms such as Snapchat are proving to be increasingly favorable for the company. As a result, Comcast believes that the rising trend of viewing content online could be better for its Cable Networks segment in the long run.
According to Comcast, the rising trend in viewing content online has not resulted in a rising trend or a slowdown in subscriber losses for the company.
Comcast’s Cable Networks business in fiscal 2Q17
Comcast’s Cable Networks business had revenues of $2.7 billion in fiscal 2Q17. As the above graph shows, content distribution revenues made up 57.0% of the company’s Cable Networks business, with revenues of $1.5 billion in fiscal 2Q17.
In the next part of this series, we’ll discuss the outlook for Comcast’s advertising business.