As Comcast Corporation basks in glory after recently outbidding now Disney-owned 21st Century Fox for control of Sky plc, a whole world of highly profitable ventures awaits the US telecommunications conglomerate.
With the approximately $40-billion acquisition deal, Sky opens Comcast to a floodgate of opportunities. In Europe, the US group will inherit the pay-TV’s subscriber base with roughly 30 percent penetration and is surging.
Due to this benefit, Comcast would no longer merely rely on its robust American market.
Moreover, through the sealed acquisition agreement publicized last Saturday, Comcast metamorphoses into the world’s largest pay-TV juggernaut, lucratively gaining from the patronage of 52 million subscribers.
According to 2017 full-year statistics, from roughly nine percent, the Philadelphia-based organization would witness a 20 percent increment to its non-US revenue.
Comcast’s victory is also timely now that streaming services are riding high in the entertainment sector.
The firm will significantly receive advantages as it accedes Now TV, a telecommunications provider and Sky subsidiary that has over two million subscribers in the United Kingdom.
The victor of the bidding battle for Sky can turbo-charge Now TV, making it capable of contending with mainstream streaming services globally like Netflix.
The exclusive partnerships to distribute Premier League soccer matches and HBO entertainment programs could further boost Comcast in the coming years as well.
Alice Enders, a research executive from Enders Analysis, affirmed that Sky plc possesses “an extraordinarily well-established brand.” She said that the newly acquired company is in itself a destination and is very important in the fragmented media realm.
The product range of Sky, which includes broadband services that accompany its satellite offerings in sophisticated platforms like Sky Q, makes it more than a source of content.
However, despite these rosy outlooks for Comcast, its takeover of the European pay-TV company is not without vulnerabilities, based on analysts’ perspectives.
In the long haul, cutthroat competition in the market is among the issues which the world’s second-largest cable TV and broadcasting organization by revenue have to deal with.
Technology juggernauts could intensify the contest for sports broadcasting licenses. Furthermore, mainstream content producers are introducing their services.
On September 22, Comcast outbid 21st Century Fox on behalf of Disney in their fight to obtain control of the Pan-European, British telecommunications and media organization.
Comcast successfully beat Fox’s bid of £15.67 ($20.49) per share of Sky with its £17.28 ($22.60) offer.
In a celebratory mood, chairman and chief executive officer, Brian Roberts, remarked on Saturday that it was a “great day” for his company.
He said that Comcast’s accession of Sky is exciting because it will enable them to extend their reach further worldwide and to grow their customer base in a fast, efficient, and meaningful manner.