The Philadelphia Inquirer reports that Comcast profits have fallen 4.4% during the last quarter. This is a reflection of 477,000 former cable-TV customers cutting the cord in the most recent 3-month period. According to the article, NBC Universal revenue has dropped over 25%. Unsurprisingly, fallout from the coronavirus pandemic is the cause, cutting off revenue streams from theme parks as well as live sports.

Despite the fact consumers are more homebound than ever, the article notes that 2020 will see a record number of cable TV subscription cancellations. Another issue impacting profits in Comcast’s markets is the pause in production of TV shows.

The one bright spot for Comcast is broadband Internet, which continues to grow. Here, the company saw an increase of 323,000 customers and revenue growth of 7.2%. Moreover, Comcast has just launched the NBC Universal streaming service, Peacock, that has future revenue potential.

One trend highlighted by the article is the separation of entertainment content from sports. Consumers are choosing to stream movies and TV shows on-demand, whereas sports fans have shown a willingness to pay for live TV in order to enjoy live sports.

Any problems related to percentage drops in income from TV and movies are comparatively dwarfed by the loss of revenue in the theme park sector. According to the article, the shutdown is responsible for a 94.1% drop in revenue in Comcast's then park business. Compare this to an 18.1% drop in receive caused by theater closures.

One interesting tidbit in the article is that Trolls World Tour made over $100 million as a $20 rental on-demand. It also notes that Universal Pictures has arrived at a deal with AMC theaters to release movies on-demand much sooner than has been typical in the past.

You can read the original article by clicking here.

Cover artwork from shutterstock by J.J. Gouin