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Here’s How Comcast Plans to Fight Cord-Cutting


Dec. 4 2020, Updated 10:50 a.m. ET

Comcast to make AWS its preferred cloud provider

Amazon’s (AMZN) Amazon Web Service (or AWS) announced on Tuesday, January 16, 2018, that media giant Comcast (CMCSA) has made AWS its preferred public cloud provider.

Comcast already uses AWS for Comcast Cable or Xfinity and NBC Universal. The media company has used Amazon’s cloud services to quickly deliver internal and customer-facing apps (applications). The announcement could mean that Comcast is planning to use AWS for most of its cloud workload.

The company could be looking to leverage on the nimbleness of the cloud in order to help differentiate its services. Comcast has been grappling with cord-cutting, with more people deciding to cancel their cable plans.

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Cord-cutting is increasing faster than expected

According to estimates of research firm eMarketer, there were 22.2 million cord-cutters in 2017, an increase of 33.2% from 2016. According to the same report, the number of American adults watching pay TV declined 2.4% year-over-year in 2017. Comcast has about 22 million cable subscribers. It is one of the leading cable TV providers in the United States.

Since customers have increasingly more options for content, traditional media companies such as Comcast are feeling the crunch. Low-cost quality video streaming companies such as Netflix (NFLX) and Amazon Prime Video are negatively affecting the media giant’s video subscriber growth. As the graph above shows, in fiscal 3Q17, Comcast lost 125,000 video customers.


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