Content and Streaming Analysis in Wake of Strategy Changes

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All eyes are on the cable provider giant Comcast® as their latest strategy changes are in the pipeline. There is still not much news on what Comcast® is planning to do with UK-based Sky®, and it is yet to be seen whether Sky® will help boost the stocks of Comcast® that tumbled 15% last year.

Moffett Nathanson analysts anticipate some clear cues about their earnings in the upcoming days. “They’ve given no hint at all about what they plan to do with their new toy. It can’t possibly be that they will pursue a business-as-usual strategy,” they said. Another prominent analyst, Amy Yong, said, “The strategic rationale and financial profile behind Sky® now take center stage.”

Changing Performances in the Satellite Industry

In the past year, the satellite industry suffered setbacks as the prominent industry names such as Walt Disney® and Comcast® strived for dominance. Satellite TV providers like DISH Network® and DIRECTV® lost several of their subscribers at an alarming rate.

AT&T® bought DIRECTV® in 2015 for $49 billion in one of the best cable deals. Yet since then, there has been a decline in the number of subscribers on the service. The number of subscribers fell from 21 million in the first quarter of 2017 to 19.62 million as of September last year. DISH Network® also suffered a similar setback, as it saw a reduction from 12.5 million satellite subscribers to 10.28 million in a matter of two years.

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As of now, Sky® has 23 million subscribers. This includes phone, satellite TV, and broadband. It is also one of the fastest internet providers in the country. Besides, it has an excellent production unit functioning, with content such as news programming and movies. They also hold the broadcasting rights to sporting events in Europe, covering the major soccer tournaments.

Comcast® already owns U.S. broadcaster NBCUniversal®. According to the experts, the acquisition of Sky® could open a door of possibilities for the giant to extend its reaches globally. Comcast® and Sky® were also speculated to enter into a union and developing an online platform similar to a Netflix®, with the aid of NBC® film studios.

“We look at Sky® as a media company: Sky News, Sky Sports, Sky Movies,” Comcast’s CEO, Brian Roberts, told the analysts in 2018 through a conference call. “There’s tremendous presence in the content creation, not just the distribution. We think of it more like a Comcast® NBCUniversal than any company we’ve seen.”

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