COMCAST CORPORATION Harvard Case Solution & Analysis


Describe the television industry “ecosystem” and the role of Comcast in the ecosystem
The television industry is highly saturated as there are a number of cable service providers in the entire industry. This has increased the overall competition in the entire market. There are a number of major players in the entire industry, which include Direct TV, Time Warner Cable, AT&T and dish.

The players in the entire industry make their back breaking efforts in order to attract the overall customers towards their product by innovating their products and services as well as by lowering their prices.

Comcast has also focused on innovating its products and services as well as the management of the company has also focused on maintaining good relations with the content providers in order to enhance its overall competitiveness.

How has consumer behavior evolved in the industry? What have been some recent trends?

The consumers’ behavior in the entire industry has been evolving rapidly nowadays. The consumers in the entire industry are focusing more towards the internet streaming and online video rather than conventional cable shows.
In addition to this, the customers are more focusing towards the new services launched by different content providers on which the customers are not liable to pay the subscription fees to consumers.

Why did HBO announce its new service HBO Now? Use data from the case to justify your answers

The company has launched HBO Now in order to provide more value to the customers as the service does not require any dependency on the cable service providers due to which the customers are not liable to pay any subscription fee to cable service providers.
In addition to this, HBO sought a massive opportunity of attracting customers through HBO Now as it is anticipated that there were 10 – 15 million cable TV households that could be persuaded to try HBO through launching HBO Now.

Yes, HBO’s new service would cannibalize the existing business of HBO’s with the cable service providers as the customers would be then directly facilitated by the company without any dependency on the cable service providers.
As a result, it would affect negatively on the existing business of HBO with the cable service providers.

Why are Comcast and other providers charging HBO almost 50% of the monthly subscription? What does Comcast do for HBO that justifies this fee?

Comcast as well as other cable providers are charging 50% of the monthly subscription in order to maintain good business relations as well as in order to continue its business relationship with HBO. Since HBO has launched new service, which has decreased its overall dependency on the cable service providers, therefore, the cable providers are lowering their fees in order to continue their business with HBO. In addition to this, Comcast pays the highest fees to HBO as well as Comcast sold HBO as an add-on channel. ......................

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