Netflix is now worth more than Comcast

Screen Shot 2018-05-24 at 8.30.05 AMNetflix’s market value increased to about $150 billion today; it is now worth more than Comcast.

Comcast, the largest U.S. cable company, has been losing video subscribers as people cut the cord and move to streaming services … such as Netflix. Comcast had 22.3 million pay TV subscribers in the first quarter of 2018, down from 22.6 million a year earlier.

Meanwhile, Netflix has been gaining streaming users, adding more than seven million subscribers in the first quarter.

Of course, Comcast and Netflix have completely different businesses. Comcast owns a sizable broadband company in addition to cable. It also owns NBC and Dreamworks. It’s also planning on bidding on Fox’s movie and TV studios, cable networks and even a stake in Netflix competitor Hulu.

And most of Netflix’s growth is coming from its international expansion.

But the symbolism is hard to resist.

This New Report Shows OTT Isn’t Killing Cable … Yet

OTT-tv-star-CONTENT-2018TV viewing habits might be changing, but a new study shows that projected revenue from over-the-top (OTT) devices won’t come anywhere close to matching the billions of dollars in projected revenue from cable, satellite and telco TV in the years to come.

OTT revenue, based on 55 OTT providers led by Netflix, grew 41 percent in 2017 to $11.9 billion, according to findings by Convergence Research.

The group forecasted that figure to increase to $16.6 billion for 2018 and $27.6 billion for 2020. That’s still billions of dollars away from the projected revenue from cable, satellite and TV.

In 2017, revenue among them only grew 1 percent to $107.6 billion. But the research group still projected revenue to reach $107.4 billion for 2018, and $106.9 billion for 2020.

That’s more than a $79 billion difference.

Here’s what else the research group found:

  • OTT subscriber households will far surpass TV subscribers in 2020, however U.S. TV subscriber average revenue per user (ARPU) will be four times U.S. OTT subscriber household ARPU, down from six times in 2017.
  • 2017 saw a decline of 3.66 million U.S. TV subscribers and they forecast a decline of 3.72 million TV subscribers for 2018
  • Broadcast & Cable Network Online TV advertising represented 5.2 percent of 2017 U.S. TV advertising revenue and forecast 5.6 percent for 2018