The new Comcast broadcasting service, Rivaling Netflix, is all about ads

When Comcast launches its global rival to Netflix by 2020, a key difference will differentiate the two services: digital advertising.

While some international audiences can expect a free Netflix-free experience, early cable giant efforts will focus on signing more than 50 million US and British customers for the compatible version of the application, Comcast executives said on Wednesday company revenue call

"Among the United States and Sky in the United Kingdom, we believe we should start and try to make as much money as possible with a free advertising ad service," said Steve Burke, executive chairman of NBCUniversal of Comcast.

The application will only be free for Comcast TV subscribers; Others will be asked to pay a fee. (The rumored price is $ 12 per month, according to the CNBC). But that decision says a lot about where Comcast is, both when faced with a string accelerator movement and pursues other companies, such as AT & T, which have merged popular content with a powerful distribution network.

Introducing a video application creates a new advertising platform that previously did not have access to merchants, said Comcast. Advertisers spent $ 863 million on the Comcast cable platform only in the last quarter, so Comcast expects that number to grow even more when it begins to work after rope cutouts are great.

By hanging up its transmission application before customers with cable television at no extra cost, Comcast revealed how to expect to keep loyal customers: betting that the convenience of watching NBCUniversal's content online will be enough to prevent further video losses. Comcast said on Wednesday it lost another 29,000 TV subscribers in the final quarter of 2018.

As much as Netflix did with its application, Comcast will have ample opportunities to gather data on what the viewers of the application are watching for and for how long. The construction of more detailed digital profiles of your audience could give you some of the same capabilities that AT & T said motivated your decision to buy Time Warner: the growing attractiveness of targeted ads, which can be often more lucrative than traditional, non-targeted ones announcements Comcast executives informed investors about the call that "there is a great demand for digital advertising ... We are constantly trying to find more inventory of advertising."

Next, there is the amount of internet usage that a free and supported advertisement service could lead to the Comcast network. As Comcast's business revolves around broadband on cable television, everything that drives more use of the Internet on its network benefits Comcast's bottom line. And the video promises to do just that. Online video now accounts for almost 60 percent of all online traffic on the internet, according to the Sandvine market research company.

The more Comcast can attract your high-speed Internet clients to sign up for your video streaming application or attract new broadband clients through the application as a promotional tool, the more people use Comcast Broadband network. At a competitive price with Netflix (or free, in the case of existing subscribers of Comcast TV), the new application could allow Comcast to make even more money in one of its largest commercial segments.

"We feel that sub-monetize significantly on the Internet," said Burke, pointing out the opportunity he sees for the rest of the company, "and we sub-monetize on free platforms, and also under monetise in [subscription video on-demand] platforms ".

For Comcast, offering a broadcasting application with advertisements is not just an attempt to minimize Netflix. It is also an attempt to expand its advantage in other parts of your business.

© The Washington Post 2019

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