Comcast at JP Morgan Conference Notes

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Matt Strauss – EVP and General Manager of Video Services at Comcast Cable

Millenials still watch a lot of TV

“When you look at a segment like millennials, like what we have found, like 25 to 34-year-olds with no kids, it’s actually one of the largest segments of our video bundle. I think it’s kind of this perception that millennials don’t watch TV. Millennials actually watch as much, if not more TV than anybody. I think that in some cases they’re more comfortable consuming video on mobile devices, but all the data and research we’ve seen is that people will default to the best screen available to them. Put a 55-inch television in front of somebody, they’re likely going to watch it, and a lot of the consumption is still happening on the TV.”

Skinnier bundles aren’t about people wanting less choice it’s about wanting to pay less

“What I think is happening is that you do have certain segments, you don’t typically hear someone say they want less choice, what you may hear is they want to pay less, and that’s very different. That to me is driven more by economy, and if the economy is actually having some impact on customers who may want to have a skinnier bundle, and it could be because they maybe not a heavy video consumer, but in part it could just because of the life stages of where they are.”

We’re in a golden age of television

“I think we’re like in the golden age of TV. There is more high-quality TV shows available now than at any other time in the history of the industry. I think last year alone, there were over 200 original scripted prime time series. I mean there’s almost more TV than any human could ever watch. When you look at how much TV consumption the average TV households consumes it’s about four to five hours a day”

On Demand would be our number one channel if it were a cable network

“f you were to look at on-demand for us as a network if it were a cable network, and we actually put it as Channel One. It would be the highest rated cable network in our footprint, just based on the sheer amount of people who consume the content there.”

People are using on-demand to catch up

“more and more people are going to on-demand to catch-up, or they heard about this show Empire and they go to on-demand and they know it’s there. And then that is continuing to increase the consumption on the platform that was most interesting about it is that that’s actually manifesting higher ratings in our footprint for those shows, which again I think was counterintuitive to allow the networks.’

Response to OTT/cord cutting question

“We have a lot of confidence in the products and services that we have in the market today. Obviously here we’re talking a lot about X1, and I think that it gives us confidence that not only can we meet the demands of our customers, but also that we could be dynamic and flexible that if the market shifts in a certain direction, or if customers demand a certain type of product that we are in his good, if not the best position to help meet that demand. So you and I come into the office and everyone who works on the video business that comes into the office, the lens that we look at this space is not how many fewer subs are we going to have, it’s how we got to grow.’

DVR in the cloud

“I mean there are certain things that we are putting into place now, like, for example Cloud DVR. We have been deploying a cloud infrastructure where we now offer the ability for customers to get access to their recordings in the cloud. ”

Never turn off your TV

“When you look at the TV, it’s almost like it’s stuck in time. Like, I turn it on when I want to use it and I turn it off when I don’t want to use it. It’s a fairly crude device. When I look at X1 in the platform, the goal for me is you never turn off your TV. “