As evidenced from the case study comcast faces

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As evidenced from the case study, Comcast faces several strategic problems. First, the company faces adverse market competition after the entry of video streaming companies such as HBO and Netflix into the market. HBO is a premium cable network with over 41 million US subscribers with annual revenues of $4.9B and profits of $1.7B. Initially, HBO was owned by Comcast by the later sold it as add on channel.Recently, HBO launched HBO Now a partnership with Apple Inc. The newly introduced service does not require cable subscription. The company estimate more than 10 million subscribers will be tempted to try this new service. This move by HBO has opened floodgates to other video based service providers such as CBS. After HBO announcement, CBS introduced CBS access a standalone service product which too does not require cable subscription. Introduction of these services means customers may be willing to bypass the old traditional cable subscription. Comcast being a cable service provider will be largely affected by the latest moves by HBO and CBS. According to Exhibit 2, cable and satellite subscriptions revenues are declining. Young subscribers are more attracted to online subscription rather than using traditional TVs to stream TV shows and movies. Netflix entry to market too poses serious threat to
Comcast. Since its introduction, the company is said to have more than 31 million subscribers in the US. Most consumer are said to prefer viewing Television content online due to various reasons. The viewing is convenience, lacks commercial ads, popular practice of binge watching and prices are lower compared to that of cable streaming. All these factors have a significant negative impact to Comcast revenues on both cable streaming and broadcast services.Comcast also faces challenges in reducing expenses for delivering cable services including the cost of programming and infrastructure. Notably, the programming costs amounted to over $9B which indicates 44% of generated cable revenues. Between years 2006 to 2014 the cost of programming has grew by significantly 9.3% annual rate. During the same period, the subscription revenues grew by 4.9% annual rate. As an internet service provider, Comcast competes with several other cable providers such as satellite companies as well as telecommunications companies like AT&T and Verizon in a market estimated to generate $223 billion. Also the entrants of giant tech like Google poses competition threat to the company. Google has introduced its cable service known as Google Fiber offers a speed nearly 100 times faster than the fastest available broadband. In this case, Google is seen as major force that can considerably compete with Comcast. These are major problems strategies that faces the Comcast.

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