Comcast Corporation (A)

Team 2

Name Roll Number

Gayatri Panjwani J049

Piyush Poddar J033

Sidhant Daga J005

Jotika Maheshwari J016

Shubham Bhutani G038

Vinamar Anand F032

Question 1. Analyse the overall Strategic issues in terms of Brand CANVAS

which was required for COMCAST.

When we analyse the overall strategic issues of Comcast in respect to the business

model canvas, we can see that Comcast has introduced new bundles which included

internet service and HBO subscriptions. The current business model of Comcast was

under threat due to the partnership between Apple and HBO and other competitors

like CBS. We have analysed the business model canvas in the chart shown below.

This shows that Comcast needs to focus more on maintaining and fostering

customer relationships and can focus on developing partnerships like it did with

Apple to enhance it’s value proposition.

Key Partners Key Activities Value Propositions Customer Relationships Customer

Segments
HULU Network TV Cable subscription Recommendation based
Development and (growing at 4.9%) model Cable operators
Network Maintenance
Providers Mass media and Retail Sale Satellite
Content entertainment Companies
Content Development and Declining penetration, Cord

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Makers production Large outreach Cutting End Consumer

Advertising Development of Digital Cable TV Video On Demand Advertisement

Agencies new
internet-based Comcast’s private Customer Service Telecom
Distribution products. network services Companies
Partners Brand Awareness
Value based services
like Video on demand Social Media Presence

Comcast being the

largest cable provider in
US

Key Resources Channels

NBC TV Channels

Brand Name Websites

Multiple Cable only Call Centres

channels
Mobile Apps
Massive audience

Copyrights
Cost Structure Revenue Streams

Advertising Programming and transmission fees around 3 billion

dollars
Copyrights
Revenue shares
Network deployment and maintenance
Commission
IT Cost
Subscriptions
Customer Support
Advertising – 43$ CPM for primetime
Programming
Royalties and Licences

BUSINESS MODEL CANVAS

Question 2. What are the value for customer approach thought by CEO of

Comcast?

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 Besides incurring expenses for programming, Comcast incurred huge expenditure

for providing proper infrastructure to the subscribers like set-top boxes and other

network equipment in order to improve quality and reliability of their services.

Comcast also launched X1 platform which hosted on demand content, recordings

and other online content and unlike the previous on demand platform also provided

personalized recommendations and was organized around search viewing thereby

improving the user experience. In order to enter new market segments, the company

also introduced new bundles which included internet service and HBO subscriptions.

The current business model of Comcast was under threat due to the partnership

between Apple and HBO and other competitors like CBS. In order to maintain the

market share, it is necessary for Comcast to introduce changes in its business model

and come up with new products suited around the needs of subscribers

Question 3. What elements of Sales and Marketing were considered and

what’s your analysis and recommendations?

 Comcast’s Marketing strategy in reaching the diverse target group is to use the multiple

customer service call centres, customer service centres, the website, door-to-door

selling, telemarketing, retail outlets and advertising via direct mail, television and

internet.

Joining the Apple partnership would be most feasible for the company as the

competitors are already taking steps to create a competitive edge utilizing the

opportunities in the newly evolved market after these announcements. Partnership

would not only help Comcast to compete with the rivals in the industry but it would also

allow the service provider to continue its business operations with HBO.

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The transformation in the behaviour of the subscribers has changed over years. The

young subscribers are influenced by the services available at cheaper rates or free and

on multiple screens whereas the elder segment of subscribers is not irritated by the

chord and are still willing to pay higher price for the subscription.

Comcast can look forward to cater to both the segments by continuing its current

operations of providing cable services to elder segment of the subscribers and can

introduce new ventures in partnership with Apple in order to attract the younger

demographic subscribers. These decisions will not only push Comcast towards the

innovation in the industry but will also keep the service provider connected with its

traditional means of providing services.

Question 4. Was it time to distribute NBC contents direct to customer?

Comcast sold HBO as an add-on channel to its customers and they paid Comcast

$15 per month for the subscription of HBO, whereas, HBO received only $7.77 per

subscriber. This is one of the reasons why HBO decided to expand its service and

launched HBO GO streaming service which they provided to its cable subscribers

without extra cost. The rationale behind giving its customers the free service was

justified when their customers used to share the password with their friends, families

and Plepler thought that it was a terrific marketing vehicle for the next generation of

viewers. HBO also launched HBO Now which had gained substantial revenues and

with this HBO realized its standalone position in the market. It was after this that

HBO launched HBO Now with the partnership of Apple in 2015.

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 This service didn’t require any cable subscription and people were able to access

HBO by itself.

However, HBO's action opened doors for other companies, such as CBS All-Access,

which was launched following the HBO Now service, which was also a standalone

offering. Consumers were able to circumvent the regular cable providers and receive

their TV programmes at a lower cost as a result of these activities. HBO and CBS's

actions were enough to disrupt the operations of numerous cable companies,

including Comcast. HBO, on the other hand, was concerned that doing so would

suffocate Comcast's existing services or channel. On the other hand, HBO proved

that it was capable of producing a successful standalone film.

As a result, it is advised to Comcast that it change its current strategy and give direct

access to NBC to consumers. Furthermore, the company should form a partnership

with Apple in order to improve its chances of success. This would aid the firm in

maintaining its market position, which was expected to be disrupted as a result of

HBO and CBS's activities. Furthermore, since the trend of online streaming has

grown, it is predicted that demand for bundles would decline. So, in order to maintain

its position, the NBC should adapt itself with the changing environment and give its

contents directly to the consumer. 

Question 5. Was it wise to join Apple Partnership?

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 Yes, it was wise of HBO to join the Apple Partnership. HBO has a premium network

of 41 million customers in the United States, which helps the company earn

revenues of $4.9 billion, with $1.7 billion in profits. HBO has also received numerous

honours and is a well-known company.

Firstly, Comcast was selling HBO as an add-on channel in the premium channel list.

Secondly, with the onset of OTT platforms and internet services, it was a better

business proposition for HBO to expand its offerings in the online space.

HBO has partnered with Apple to launch HBO Now as a standalone service. HBO

Now is available without a cable subscription and has the potential to persuade 10-

15 million cable TV households. Other market participants have also taken proactive

measures to keep up with this innovation. “CBS All-Access” was launched by CBS.

Question 6. What would happen to Comcast bundles that included HBO?

HBO gets slightly more than 50% of the fees charged by Comcast to its subscribers,

so cable TV acts as a great revenue source for HBO. With the introduction of HBO

now, HBO cannot lose out on the traditional media channel which is the cable

provider. 

Comcast could leverage by having an upper hand in this situation, to make it a win-

win for both HBO and Comcast they need to come out with a new profit sharing

ratio, Comcast could demand a higher ratio since it has the highest share in the

cable and internet industry and HBO cannot lose out on cable tv altogether after the

onset on HBO now. 

Another aspect relating to the bundles would be the content streaming date and

time, shows and movies could come out on HBO cable channels prior to the online

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 streaming. This is a model adopted by most of the content developing companies

sharing their content on OTT channels.

Question 7. Can Comcast be considered a Successful Strategy implementer,

considering the environment in which it was operating

Faced with challenges in various ways and on the verge of reinventing its business

completely, Comcast can be considered a successful strategy implementer because

it has opened itself up to new opportunities by partnering with Apple and also

deciding to distribute the NBC content directly to consumers. A strategic partnership

with Apple would mean that Comcast does not lose out on new customers who can

be targeted through Apple’s platform, while a D2C (direct-to-customer) model for

bundled services will result in an innovative solution to improve profitability.

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