Comcast Corporation (CMCSA): Business Model Canvas [10-2024 Updated]

Understanding the business model of Comcast Corporation (CMCSA) reveals how this telecommunications giant maintains its competitive edge. By leveraging key partnerships, engaging in diverse activities, and offering a wide range of value propositions, Comcast effectively serves multiple customer segments. Dive deeper to explore the intricacies of Comcast's business model canvas and see how it navigates the ever-evolving landscape of media and connectivity.

Comcast Corporation (CMCSA) - Business Model: Key Partnerships

Collaborations with content providers for programming

Comcast engages in strategic partnerships with various content providers to enhance its programming offerings. In the third quarter of 2024, Comcast's programming and production costs amounted to $10.2 billion, reflecting an 18.1% increase compared to $8.7 billion in the same period of 2023. This increase is largely driven by costs associated with the Paris Olympics and higher programming fees at Peacock, Comcast's streaming service.

Partnerships with technology firms for infrastructure

Comcast collaborates with several technology firms to bolster its infrastructure capabilities. For instance, Comcast's investment in network enhancements is crucial for supporting its broadband services, which generated $6.5 billion in revenue for the third quarter of 2024. Additionally, the company reported an increase in connectivity revenue, which includes partnerships with third-party networks to deliver services efficiently. The total costs related to technical and support services reached approximately $1.9 billion for the third quarter of 2024.

Joint ventures, e.g., Xumo with Charter Communications

Comcast's joint ventures play a significant role in its business model. One notable partnership is with Charter Communications through their joint venture, Xumo, which focuses on streaming services. As of September 30, 2024, Xumo contributed to Comcast's overall revenue with significant growth in its subscriber base, which reached approximately 36 million paid subscribers. This collaboration is intended to leverage both companies' strengths in the competitive streaming market, aiming to capture a larger share of digital advertising revenues, which amounted to $3.3 billion for Comcast in the same quarter.

Partnership Type	Partner	Focus Area	Financial Impact (Q3 2024)
Content Collaboration	Various Content Providers	Programming and Production	$10.2 billion (18.1% increase)
Technology Partnership	Various Technology Firms	Infrastructure and Network	Technical and Support Costs: $1.9 billion
Joint Venture	Charter Communications (Xumo)	Streaming Service	36 million paid subscribers

Comcast Corporation (CMCSA) - Business Model: Key Activities

Delivery of broadband and cable services

Comcast continues to be a leader in the broadband and cable services sector. For the three months ended September 30, 2024, Comcast reported domestic broadband revenue of $6.539 billion, reflecting a 2.7% increase from $6.366 billion in the same period in 2023. For the nine months ended September 30, 2024, this revenue reached $19.700 billion, up from $19.086 billion, a 3.2% increase year-over-year.

The company’s total residential connectivity revenue for the same period was $8.869 billion, with video revenue at $6.713 billion and advertising revenue at $987 million. However, video revenue saw a decline of 6.2% compared to the previous year.

Content creation and distribution through various platforms

Comcast's content creation and distribution segment has seen a significant boost, particularly due to events like the Paris Olympics. The Media segment reported total revenue of $8.231 billion for the three months ended September 30, 2024, a substantial 36.5% increase from $6.029 billion in 2023. For the nine months ended September 30, 2024, total revenue reached $20.926 billion, up from $18.376 billion, marking a 13.9% increase.

Specifically, revenue from Peacock, Comcast's streaming service, amounted to $1.5 billion for the three months and $3.6 billion for the nine months, up from $830 million and $2.3 billion respectively in 2023. The number of paid subscribers for Peacock increased to 36 million in 2024, up from 28 million a year earlier.

Ongoing network expansion and maintenance

Comcast has been actively expanding and maintaining its network infrastructure. The company reported capital expenditures of $2.4 billion in property and equipment and intangible assets for the nine months ending September 30, 2024. Total costs and expenses in the Connectivity & Platforms segment were $11.996 billion for the three months ended September 30, 2024, slightly down from $12.050 billion in the previous year.

Metrics	Q3 2024	Q3 2023	Change (%)
Domestic Broadband Revenue	$6.539 billion	$6.366 billion	+2.7%
Total Residential Connectivity Revenue	$8.869 billion	$8.393 billion	+5.7%
Video Revenue	$6.713 billion	$7.154 billion	-6.2%
Advertising Revenue	$987 million	$960 million	+2.7%
Media Segment Revenue	$8.231 billion	$6.029 billion	+36.5%
Peacock Revenue	$1.5 billion	$830 million	+80.5%
Peacock Subscribers	36 million	28 million	+28.6%
Capital Expenditures	$2.4 billion	—	—

Overall, Comcast's key activities in delivering broadband and cable services, content creation and distribution, and ongoing network expansion are crucial to maintaining its competitive edge and meeting customer demands in 2024.

Comcast Corporation (CMCSA) - Business Model: Key Resources

Extensive telecommunications infrastructure

Comcast operates a vast telecommunications network, providing services such as broadband, video, and voice, covering approximately 58 million homes across 39 states and the District of Columbia as of September 30, 2024. The company reported a revenue of $19.7 billion from domestic broadband for the nine months ended September 30, 2024, reflecting an increase from $19.1 billion in the same period of 2023.

Strong brand presence and customer base

Comcast is recognized as one of the largest media and technology companies globally, with a strong brand presence. As of September 30, 2024, Comcast had approximately 29.6 million video subscribers and 37.3 million broadband subscribers. The company’s brand value is significantly enhanced by its offerings through NBCUniversal, which encompasses a wide array of television networks and film production assets.

Diverse content library, including NBCUniversal assets

Comcast's content library is extensive, with NBCUniversal contributing significantly to its portfolio. As of September 30, 2024, the Studios segment generated $7.8 billion in revenue over the first nine months, down from $8.6 billion in the previous year. This segment includes a diverse range of films and television shows that not only cater to traditional audiences but also bolster the streaming service Peacock, which has seen growth in subscribers.

Key Metrics	2024 (Q3)	2023 (Q3)	Change (%)
Domestic Broadband Revenue (in millions)	$19,700	$19,086	3.2%
Video Subscribers (in millions)	29.6	30.6	-3.3%
Broadband Subscribers (in millions)	37.3	36.0	3.6%
Studios Revenue (in millions)	$7,822	$8,561	-8.6%

As part of its commitment to content creation, Comcast has allocated substantial resources towards the development of original programming, which is crucial for maintaining competitive advantage and attracting subscribers to its streaming platform, Peacock. The company’s investments in content are reflected in its programming and production costs, which totaled $27 billion for the nine months ended September 30, 2024, compared to $26.5 billion in the same period in 2023.

Comcast Corporation (CMCSA) - Business Model: Value Propositions

High-speed internet and reliable cable services

Comcast's primary value proposition lies in its provision of high-speed internet and reliable cable services. As of September 30, 2024, Comcast reported a total of 31.3 million residential broadband customers in the United States, reflecting a slight decline from 31.7 million in the previous year. The average monthly revenue per residential broadband customer was approximately $66.50, contributing significantly to the overall revenue. The company aims to enhance customer satisfaction through consistent improvements in service delivery and network reliability.

Diverse entertainment options including streaming and live TV

Comcast offers a wide range of entertainment options, including both streaming and traditional live TV services. The company's streaming platform, Peacock, has grown to 36 million paid subscribers as of September 30, 2024, up from 28 million the previous year. The media segment revenue, which encompasses Peacock and other channels, reached $20.9 billion for the nine months ended September 30, 2024, marking a 13.9% increase compared to $18.4 billion for the same period in 2023. This diverse offering is designed to meet varying consumer preferences and viewing habits, thereby enhancing customer engagement and retention.

Bundled services offering convenience and savings

Comcast's bundled services provide a compelling value proposition by combining internet, cable, and phone services into one package. This bundling strategy not only offers customers convenience but also significant cost savings. The average monthly revenue per customer relationship across all services is approximately $129.20$32.1 billion, a slight increase from $30.1 billion in the previous year. By leveraging bundled offerings, Comcast aims to increase customer loyalty and reduce churn rates across its service lines.

Service Type	Q3 2024 Revenue (in billions)	Q3 2023 Revenue (in billions)	Growth Rate
Residential Connectivity	53.4	53.7	-0.5%
Business Services Connectivity	7.2	6.9	4.3%
Media Segment	20.9	18.4	13.9%
Theme Parks	6.2	6.5	-4.6%
Total Revenue	91.8	90.3	1.7%

Comcast Corporation (CMCSA) - Business Model: Customer Relationships

Customer support through various channels

Comcast Corporation provides customer support through multiple channels, aiming to enhance customer satisfaction and retention. The company reported a total customer service expense of $695 million for the three months ended September 30, 2024, compared to $695 million for the same period in 2023 . This stable expenditure reflects Comcast's commitment to maintaining quality customer service despite fluctuations in overall operational costs.

Loyalty programs and promotional offers

Comcast has implemented various loyalty programs and promotional offers to attract and retain customers. The average monthly total revenue per customer relationship in the Connectivity & Platforms segment was reported at $129.20 for the three months ended September 30, 2024, indicating a focus on maximizing value through customer engagement . Additionally, promotional campaigns have included bundling services, which contribute to customer retention and satisfaction.

Engagement via digital platforms and social media

Comcast actively engages with customers through digital platforms and social media, utilizing these channels to provide updates, address concerns, and promote services. As of September 30, 2024, the company reported a total revenue of $91.8 billion across all segments, with a significant portion attributed to its digital engagement efforts . The company also reported an increase in advertising revenue, which rose by 2.7% year-over-year for the three months ended September 30, 2024, driven by enhanced digital marketing initiatives .

Channel	Customer Service Expense (Q3 2024)	Average Monthly Revenue per Customer	Advertising Revenue Increase
Customer Support	$695 million	$129.20	2.7%

Comcast Corporation (CMCSA) - Business Model: Channels

Direct sales through online platforms

Comcast utilizes its online platforms to facilitate direct sales, which is a significant channel for customer acquisition. As of September 30, 2024, Comcast reported a total revenue of $32.07 billion for the third quarter, with a substantial portion generated through its digital sales channels. The residential connectivity and platforms segment alone contributed $17.87 billion in revenue, indicating the effectiveness of online sales strategies in reaching consumers directly.

Retail locations for service sign-ups and support

Comcast operates numerous retail locations across the United States, providing customers with options for service sign-ups and support. These locations serve as critical touchpoints for customer engagement. In Q3 2024, the company reported that the business services connectivity segment generated $2.43 billion, highlighting the importance of in-person interactions for business customers. Additionally, these retail outlets enhance customer support, allowing for troubleshooting and immediate service adjustments.

Partnerships with retailers for bundled services

Comcast has established partnerships with various retailers to offer bundled services, enhancing its market reach. These collaborations enable Comcast to provide comprehensive packages that often include internet, television, and phone services. In the third quarter of 2024, Comcast's total revenue from external customers reached $31.43 billion, which includes revenue from bundled service offerings. The strategic partnerships not only drive sales but also improve customer retention by providing added value through bundled discounts.

Channel Type	Revenue (Q3 2024)	Key Metrics
Online Platforms	$32.07 billion	Residential Connectivity Revenue: $17.87 billion
Retail Locations	$2.43 billion	Business Services Connectivity Revenue
Partnerships	Included in Total Revenue	Bundled Service Offerings

Comcast Corporation (CMCSA) - Business Model: Customer Segments

Residential customers seeking internet and cable

As of September 30, 2024, Comcast reported a total of 26.3 million residential connectivity customers, which includes broadband and video services. The revenue from residential connectivity reached $53.6 billion for the nine months ending September 30, 2024, marking a slight decrease from the previous year due to a decline in video subscribers but offset by increases in broadband and wireless revenue.

Metric	Q3 2024	Q3 2023	Change (%)
Total Residential Connectivity Customers	26.3 million	25.7 million	2.3%
Residential Broadband Revenue	$19.7 billion	$19.1 billion	3.1%
Residential Video Revenue	$20.4 billion	$21.9 billion	(6.8)%

Businesses requiring connectivity and media solutions

Comcast's Business Services Connectivity segment generated $7.2 billion in revenue for the nine months ending September 30, 2024, representing a year-over-year increase of 5.5%. The growth was driven primarily by medium-sized and enterprise customers looking for reliable internet and telecommunication solutions.

Metric	Q3 2024	Q3 2023	Change (%)
Total Business Services Customers	2.4 million	2.3 million	4.3%
Business Services Revenue	$7.2 billion	$6.9 billion	4.3%
Adjusted EBITDA for Business Services	$1.4 billion	$1.3 billion	4.2%

International customers for Sky-branded services

Comcast's international segment, primarily through its Sky-branded services, reported revenue of $20.9 billion for the nine months ending September 30, 2024. This segment has seen growth due to an increase in content offerings and subscriber numbers, with international connectivity revenue increasing to $3.5 billion.

Metric	Q3 2024	Q3 2023	Change (%)
Total International Customers	12.5 million	11.8 million	5.9%
Sky-Branded Services Revenue	$20.9 billion	$19.5 billion	7.2%
International Connectivity Revenue	$3.5 billion	$3.0 billion	16.7%

Comcast Corporation (CMCSA) - Business Model: Cost Structure

Programming and Content Acquisition Expenses

Comcast's programming and content acquisition costs in Q3 2024 were reported at $4.102 billion, a decrease of 8.0% from $4.460 billion in Q3 2023. For the nine months ending September 30, 2024, these costs totaled $12.756 billion, down 6.5% from $13.638 billion in the same period the previous year.

Period	Programming Costs (in billions)	Change (%)
Q3 2024	$4.102	-8.0%
Q3 2023	$4.460
9M 2024	$12.756	-6.5%
9M 2023	$13.638

Operational Costs for Network Maintenance and Customer Service

Comcast incurred operational costs for network maintenance and customer service amounting to $11.996 billion in Q3 2024, reflecting a slight decrease of 0.4% compared to $12.050 billion in Q3 2023. For the first nine months of 2024, these costs totaled $35.816 billion, down 0.8% from $36.122 billion in the previous year.

Period	Operational Costs (in billions)	Change (%)
Q3 2024	$11.996	-0.4%
Q3 2023	$12.050
9M 2024	$35.816	-0.8%
9M 2023	$36.122

Marketing and Promotional Expenditures

Marketing and promotional expenditures for Comcast totaled $1.234 billion in Q3 2024, marking a 5.5% increase from $1.169 billion in Q3 2023. For the nine months ended September 30, 2024, these costs were $3.547 billion, showing a slight decrease of 1.0% from $3.585 billion in the previous year.

Period	Marketing Costs (in billions)	Change (%)
Q3 2024	$1.234	+5.5%
Q3 2023	$1.169
9M 2024	$3.547	-1.0%
9M 2023	$3.585

Comcast Corporation (CMCSA) - Business Model: Revenue Streams

Subscription fees for broadband and cable services

Comcast generates significant revenue through subscription fees for its broadband and cable services. For the three months ended September 30, 2024, total revenue from Residential Connectivity & Platforms was $17,866 million, with broadband services contributing approximately $6,539 million. For the nine months ended September 30, 2024, broadband revenue totaled $19,700 million, reflecting a year-over-year increase from $19,086 million in 2023.

The following table summarizes the revenue from various segments:

Segment	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
Domestic Broadband	$6,539	$6,366	2.7%
Domestic Wireless	$1,093	$917	19.2%
International Connectivity	$1,236	$1,109	11.4%
Total Residential Connectivity	$8,869	$8,393	5.7%

Advertising revenue from media and streaming platforms

Advertising revenue remains a crucial component of Comcast's financial performance, particularly through its media segment. For the three months ended September 30, 2024, total advertising revenue reached $3,347 million, compared to $1,913 million in the same quarter of 2023, marking a substantial increase of 74.9%. The nine-month period also showed growth, with advertising revenue totaling $7,363 million, up from $5,965 million in 2023.

The increase in advertising revenue is largely attributed to a surge in domestic political advertising and revenue from Comcast's advanced advertising business. The following table illustrates the advertising revenue over the periods:

Period	Q3 2024 Advertising Revenue (in millions)	Q3 2023 Advertising Revenue (in millions)	Change (%)
Total Domestic Advertising	$3,347	$1,913	74.9%
Total Advertising (Nine Months)	$7,363	$5,965	23.4%

Licensing fees from content distribution

Licensing fees from content distribution also contribute to Comcast's revenue streams. For the three months ended September 30, 2024, content licensing revenue was reported at $1,865 million, compared to $1,691 million in the same period of 2023, reflecting a 10.3% increase. For the nine months ended September 30, 2024, the total content licensing revenue amounted to $5,680 million, although it showed a slight decrease from $5,856 million in 2023.

The following table provides a breakdown of content licensing revenue:

Period	Q3 2024 Content Licensing Revenue (in millions)	Q3 2023 Content Licensing Revenue (in millions)	Change (%)
Content Licensing	$1,865	$1,691	10.3%
Total Content Licensing (Nine Months)	$5,680	$5,856	(3.0%)

Article updated on 8 Nov 2024

Resources:

1. Comcast Corporation (CMCSA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Comcast Corporation (CMCSA)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Comcast Corporation (CMCSA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.