Comcast partners with Charter and Cox
Leading US cable company Comcast (CMCSA) has reportedly teamed up with cable service providers Charter Communications (CHTR) and Cox Media, the advertising unit of Cox Communications, to develop its TV advertising techniques amid the growing shift toward digital advertising. The cable providers are expected to help Comcast use customer data in compliance with privacy standards to offer addressable advertising.
Comcast has been consistently making efforts to develop its addressable TV advertising. The company, through its initiative called “On Addressability,” targets ads to households based on their interests. Comcast has also worked with TV networks Fox, Viacom, and A+E in the past to develop addressable advertising. Telecommunications carrier AT&T, through its advertising unit, Xandr, is also growing its addressable advertising business.
Comcast’s ad sales
Comcast’s total advertising and marketing revenue fell 15% YoY (year-over-year) in the first quarter of 2019, while its ad revenue in its Cable Communications segment fell 4.5% YoY in the first quarter due to a drop in political advertising revenue. Ad revenue from Comcast’s Sky division also fell 6.0% to $593 million in the first quarter.
Comcast purchased Sky for ~$40 billion in October 2018 to expand its presence in the international market and to compete with digital rivals such as Netflix and Amazon, which are attracting traditional cable subscribers with lower prices. Sky contributed $4.8 billion to Comcast’s top line in the first quarter.