Comcast in response to cord cutters has made an announcement for a deal last week for its customers in Oregon, Houston, and Southwest Washington state that the company will automatically increase Internet speeds for some customers. However, in order to grab the deal, the customers will need to subscribe to a package which comes with both cable television and Internet service, thus cord cutters can’t qualify for the offer.
In case you are a Comcast customer who is qualified for the offer, your Internet speed will become two times faster and you don’t need any type of action on your end. For instance, customers availing Internet speeds on 60 Mbps download speeds will now get a 150 Mbps speed after the speed boost from Comcast. Similarly, customers with a plan of 150 Mbps speeds will get a speed of 250 Mbps, customers with a plan of 250 Mbps speed will get 400 Mbps or 1Gbps. This latest move from Comcast is can be seen as an attempt to stop cord cutting. Although, alternative services such as YouTube TV, Sling TV, DirecTV Now and PlayStation Vue can replace television service, yet, in order to stream your favorite shows on these services, you will need an Internet connection. Comcast is expecting that the faster speed offer providing to its Pay-TV customers as a bonus will help the company reduce cord cuttings.
According to the latest earnings report from the company, Comcast had lost 96,000 residential customers, that has caused a 0.8 percent decrease in its video revenue. In 2017, Comcast lost 151,000 video subscribers in total.
The company has also made all attempts with its Internet business to help Pay-TV business defend against severe competition it is getting from streaming services such as Hulu, Netflix, in the past. The use of data caps by Comcast can be seen as a method to convert heavy video streamers into a cable package. According to Ars Technical report, “Heavy TV streamers watching on Amazon or Netflix video may continuously run out of the 1TB monthly data cap, ending up with an option of paying extra fees, as a result that may reduce online video streaming, or subscribing to non-watching TV service.
Comcast’s rival AT&T, which provides the U-Verse TV, competing service for Pay-TV, charges overage fees applied on Internet-only packages for customers exceeding their data caps. Instead of this Comcast provides a $50 per month deal that allows customers to remove the 1TB data cap and avail unlimited data.
AT&T has also facing drops in its Pay-TV services just like Comcast. Last year, around 554,000 customers moved away from AT&T’s DirecTV satellite business, however, this loss was compensated by the gain of 888,000 streaming-only customers on its DirecTV Now division. Despite the increasing competition from streaming services, Comcast had made an announcement about making a partnership deal with Netflix that would easily allow customers to stream Netflix content.