NEW YORK (AP) — Comcast is trumpeting its best year for traditional TV services in nearly a decade, even though it continues to lose TV subscribers.
As the number of traditional TV customers declines across the industry, Comcast is stemming its losses by luring them with new TV-Internet packages, while keeping TV customers around for longer with the help of a fancier cable box. The company also says recent investments in customer service, long a blemish on its reputation, have helped.
Comcast said Wednesday that it added 89,000 TV customers in the last three months of 2015, the best fourth quarter in eight years. For the full year, Comcast lost 36,000 TV customers, the smallest drop since 2007. The last year it added video customers was in 2006.
Other cable companies are improving, too, even as cable bills rise overall, and people spend more time watching video online. Time Warner Cable posted a small gain of 32,000 TV customers for 2015, the first year it's added TV subscribers since 2006.
Craig Moffett of MoffettNathanson Research wrote that even as cord-cutting has "dramatically accelerated," with TV customers dropping nearly 1 percent a year, cable companies like Comcast, Time Warner Cable, Charter and Cox are losing fewer customers overall than they have in years. That's come as satellite-TV providers and phone companies like Verizon and AT&T do worse. (AT&T bought satellite provider DirecTV in July.)
This year could be the year that cable companies starts adding back TV customers, even as traditional TV customers overall drop, says Morgan Stanley analyst Ben Swinburne. The cable companies are getting a boost from their relatively fast Internet offerings and from skinny bundles — cheaper packages with fewer TV channels.
Comcast credits skinny bundles including Internet Plus — local TV stations, the Internet and HBO — and a service called Stream, which delivers channels over the Internet without needing a cable box.
Comcast is also still rolling out its updated X1 cable box, which the company says has helped it hold on to customers longer. X1 users also tend to spend more on extra DVRs, meaning more money for Comcast. At the end of the third quarter, only about 25 percent of its TV customers had it. Comcast says 61 percent of its new video customers in the fourth quarter got X1.
And like other cable companies, Comcast has seen its Internet-access business grow. It added 1.4 million Internet customers in 2015, including 460,000 in the October-December quarter.
That's largely due to a lack of choice for speedy Internet access at home. Two-thirds of the country's homes have just one option or none at all at the speed the Federal Communications Commission has deemed broadband: 25 megabits per second.
Comcast typically promotes Internet speeds ranging from 25 to 150 megabits per second. The company announced Tuesday that it will offer gigabit Internet service — or about 1,000 megabits — in five cities this year through a modem upgrade, although it didn't say what the price would be. Rolling a faster service out nationwide should help Comcast continue to grow Internet customers, says Nomura's Anthony DiClemente.
As for Comcast's NBCUniversal business, TV ad revenue fell 2 percent to $9.18 billion for the year. For the quarter, ad revenue was largely unchanged at $854 million at cable channels like Bravo, CNBC and USA and rose 7 percent to $1.78 billion for NBC and Telemundo. The movie business got a boost from DVD and on-demand sales of hit Universal movies such as "Jurassic World," released theatrically earlier in the year.
Company-wide profit rose more than 2 percent to $1.97 billion, or 79 cents per share, in the fourth quarter. Adjusted for one-time costs, per-share earnings came to 81 cents. Revenue rose 8.5 percent to $19.2 billion.
