Comcast Corp Executive Earnings Insights: Video Subscriber Trends and Streampix

On Wednesday, Comcast Corp Class A (NASDAQ:CMCSA) reported its first quarter earnings and discussed the following topics in its earnings conference call. Here’s what executives shared with analyst and investors.

Video Subscriber Trends

Craig Moffett – Sanford Bernstein: Since there has been so much attention to the seasonality trend in basic video subscribers this quarter, I wonder if maybe Neil, you could just go through the math a little bit of why we didn’t get as large a sequential seasonal swing in basic video subscribers that we’ve historically gotten? Was it something in the fourth quarter? Was it something in the first, just help us understand what happened?

A Closer Look: Comcast Earnings Cheat Sheet>>

Neil Smit – EVP, Comcast Corporation and President and CEO, Comcast Cable Communications: Craig, I don’t think there was really a seasonality impact that was different than previous years. I think the difference was that – as Michael stated the percentage of our footprint that experienced rate increase was up from 34% to 62%. I think the size of this footprint that received rate increase resulted more customer service calls and slightly higher churn. I think our goal is to continue to improve on video losses quarter after quarter. This is the sixth consecutive quarter that we’ve done that. I think without the increase we would have had better net gain numbers, however it’s great to have this rate increase event behind us and I think I was pleased that we were able to reduce losses while increasing ARPU 4% on Video and 8% overall.


Jason Bazinet – Citigroup: Just have a question for Mr. Roberts, I was wondering if you could just elaborate a little bit on Streampix in terms of how you plan to position that in the marketplace and how long you think it will be before it ubiquitous across your footprint?

Brian L. Roberts – Chairman and CEO: Let me start. Neil you can jump in if you want. It’s a good beginning. As I said, we have ubiquitously across the footprint available. We have over couple million who now have access to Streampix. We’re beginning advertising; you’ll probably see some of our ads are terrific. The biggest thing is we’re going to increasing the quality and the quantity of the content as we secure more rights and as we put into the servers the rights that we’ve already got, so also increasing our on-demand usage and it just in the month of March, we saw real usage prior the box, so I think it’s a nice addition. Neil you want to add anything to that?

Neil Smit – EVP, Comcast Corporation and President and CEO, Comcast Cable Communications: I think the intent of it was to fill out our content portfolio, it’s complementary, so we have the recent content in the form of linear VOD content and now the library content. We’re seeing good uptick on usage, it’s on both VOD and as a premium and we also are bundling it with a video package and broadband as a way to extend our offer footprint of HSD only in DBS households and that’s been well received, so you know it’s a complementary video product and we can use it to bundle with other products.