Comcast head Brian Roberts notified on Thursday’s earnings call that his company is not in a hurry to engage in the streaming business.
Mindful that the direct-to-consumer (DTC) streaming venture is evident to be the future of large media conglomerates, Roberts noted that companies have been rushing to put an end to the traditional TV business and getting into the streaming bandwagon.
The Comcast CEO said that the DTC streaming business is “very challenging economically.” Hence, he said that his firm is not interested in sprinting into a venture that could adversely affect Comcast’s TV business.
Comcast’s NBCUniversal division has survived the downturn in traditional media quite well.
Composed of cable channels, broadcast networks, movie studios, and theme parks, the revenue of the segment climbed by eight percent to $8.63 billion during the third quarter.
The Comcast CEO affirmed that streaming would eventually be a component of their business. However, it will not be a replacement for the firm’s presently flourishing TV business.
Mergers and acquisitions and the rapid decision to engage in the streaming services sector have materialized due to Netflix’s continued gains in the stock market and staggering customer base expansion.
Comcast did not emerge victorious in the bidding battle for the entertainment assets of 21st Century Fox during the summer.
Its rival, The Walt Disney Company, acceded Fox’s entertainment assets to stock its DTC streaming ventures.
AT&T acquired Time Warner also in the summer. The world’s largest telecommunications service provider made it known to the public that it will be introducing a new streaming service.
A component of its attraction is HBO programming. Other drivers to these trends include technology giants entering the video streaming market like Facebook, Amazon, Apple, and YouTube which is Google’s powerful platform.
Roberts pointed out that Comcast is earning well on streaming. He said that the company’s contents are very well-known on Netflix and Hulu.
According to the Comcast chief, “The Office” has been the number one program on Netflix in a month’s time.
The company’s children’s shows created by DreamWorks Animation are also well-received in the leading streaming platform. In Hulu, a large percentage of its programming is Comcast content, he said.
With this development, Roberts remarked that Comcast is looking at diversified methods on how they could gain momentum when it comes to streaming.