Comcast in 2004
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Case Details:
Case Code : BSTA026
Case Length : 15 Pages
Period : 1963-2004
Organization : Comcast
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Communications
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts Contd...
Eyeing Walt Disney
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Television programs were delivered by cable or through satellite. Cable television beamed programming content through cables to the subscribers' homes. Satellite television transmitted programming content by satellites orbiting in the sky and did not require any cable connection.
DirecTV, a leading provider of direct broadcast satellite services had been promoted by Hughes, a subsidiary of General Motors in 1995. Attractive sports content, together with aggressive marketing that included free installation, resulted in rapid penetration of DirecTV. DirecTV offered more than 225 programming channels, to 60 million homes in about 40 cities in the US...
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The Road Ahead
Comcast and Disney had few overlapping assets. While Comcast controlled primarily cable distribution systems, Disney owned broadcast and cable programming and broadcast TV stations, making them both a good fit. Thanks to a Washington Court of Appeals decision in 2002, which lifted a longtime ban against cable companies from owning TV broadcast stations, the new media giant was expected to pass the initial blockades...
Exhibits
Exhibit I: Comcast - Key Financials
Exhibit II: Comcast - Financial Highlights
Exhibit III: Comcast - US Reach
Exhibit IV: Comcast - Growth (1999 - 2002)
Exhibit V: Cable Television vs. Satellite Television
Exhibit VI: Comcast - Group Profile
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