CMCSA
#So let me just start by saying the advertising market remains very strong.
Scatter is as strong as it has been really in a long time and that is a continuation.
Really we have had quarter after quarter of very strong scatter and we had a super strong upfront in May.
For the quarter, our advertising for broadcast, ex Olympics, was up 4%; our advertising for cable, ex Olympics, was about flat.
And the up 4% is a sign of CPMs being high enough on the broadcast side to exceed ratings decline and in cable they were about flat.
Cable in the last quarter ---+ there are certain quarters where we have more new launches and more things going on.
And of course, the Olympics really took a lot of the advertising from the ongoing programs during the quarter.
And concerning pricing, our HSD pricing is related on both rate ---+ is based upon both rate and, in some cases, the devices as we increase the speeds to the household.
Our rate was a bigger factor this year than it was last year, which was more device-based.
We continue to see ARPU upside.
We are putting in the fastest Wi-Fi available.
The faster speeds; we have increased speeds 17 times in the last 15 years.
And we are continuing to improve the product in terms of smart internet where it is easy to integrate new devices into the home, whether it is a Nest thermostat or Lutron lights, it will make it easy for the customers, as <UNK> said earlier to use our service.
We have to continue to increase the Wi-Fi capacity.
There are about 11 devices hanging off our network now and we will continue to do that but we see ARPU upside overall in the HSD side.
Well, I don't think the industry is anywhere near where it needs to be in terms of monetization and we were talking about the Olympics as a perfect example.
Something like 100 million Americans consumed at least part of the Olympics online.
It was a huge, huge phenomenon on Snapchat and Facebook and other places and the inability for us to articulately walk into an advertiser and talk about all that consumption in an aggregated way is a real problem.
And it is a problem that is obviously going to get solve but progress is not as great as it should be.
I think what everybody wants is pretty obvious.
They want to know what is the total audience delivery of a television show wherever it gets consumed and they want it to be done by a third party in a way that it is objective and quantifiable and that is what we are all working to.
I think the world is moving towards C7 from C3.
I think the world is moving toward measuring alternative vehicles and I think most advertisers understand when they buy a hit property, they are going to get a lot of consumption elsewhere.
And they sort of factor that into the effectiveness intellectually.
But you would certainly love for it to be done in a quantifiable way by an unbiased third party and we are not making enough progress on that.
And <UNK>, concerning XFINITY Home, we think there is a big opportunity there.
We're capturing share and growing it quickly.
About a year and a half ago we announced we had passed 500,000 customers and it has grown significantly from there.
What is interesting, I find the most interesting is about 55% of the XFINITY Home customers are new to Comcast.
We are attracting new customers and new customer relationships and about 60% of those customers have Quad-Play.
So it is a very sticky product, it continues to develop and we are very optimistic on the upside potential.
Let me take a crack at the second one first which if I understand the question when you say a disaggregated format, I'm not actually sure that I see it that way.
What X1 does from my perspective, our perspective I think, is really help you with search, navigation, discovery and enjoyment of the content you end up deciding to procure.
So if you just pick a movie star, you now talk to the remote, you say it and then it gives you recommendations and it tells you every episode now whether that episode resides on Netflix or resides on a broadcast or resides on a cable network or if you DVR-ed it.
And then it is more like this and it gives you lots of choices.
So in the case to your point, we will be upselling Netflix as an example and just as we upsell HBO and Showtime and others.
So some content allows you to be show by show our network by network but it is the breadth of all the choices in the bundle that I think is what has powered this industry.
And clearly as <UNK> said, we need to evolve and continue to progress and we will and we need to compete with whatever the future brings.
But the investment that we have made and the innovation and the people we have recruited I think sort of ties to your first question.
Very broadly put, Comcast NBCUniversal is a very special Company and we've move hundreds of people back and forth between different parts of the Company in the corporate office.
The Olympics I think are just a shining example of where all those live streams that <UNK> was just talking about were available on X1 and on the NBC Sports app and you could get there through your voice remote or through your XFINITY mobile app.
We call that Symphony and we have seen it whether it is talent wanting to work with the Company, people wanting to join the Company or innovation that the Company is doing.
And could we do more and will we do more and innovate.
Yes, but we have seen a lot of people want to use the X1 platform, there are other operators around the world in Canada and with Cox and we have had others requesting to use the platform.
So we are ---+ it seems to be resonating in almost every part of ecosystem the strategy that we are on and again, you get to a quarter like this and you see it really all working well together.
Let me talk a little bit about NBCUniversal under Comcast ownership, it has been about 5.5 years, we have more than doubled operating cash flow.
We are the fastest-growing media Company in the country.
When we came, NBC was number four, for seven years in a row, NBC is starting the fourth season in a row as number one.
We have had two record years at Universal Studios.
Our Theme Park business has tripled or quadrupled.
We have really had a wonderful experience as part of Comcast and part of that is the culture that <UNK> and everyone at Comcast has created.
Part of it is the willingness to invest, part of it is Symphony which we call our special sauce.
But looking back at the last 5.5 years, the Comcast element has lent to a great, great stimulus to NBCUniversal and I think the results speak for themselves.
Well, HSD, there is still 70% to 75% of the country has HSD so we think there is market growth opportunity.
We have about 6 million DSL customers still in our footprint so we see that as a market share opportunity.
And we have about 43% penetration so we see plenty of room for growth.
Concerning 5G, I think it is in the early days and it will be an exciting evolution of the wireless standards.
There are limitations to it such as propagation and the antennas it will need to meet power and backhaul and we think that with these thousands of endpoints in the cities you need space, power and a field force to enable the high bandwidth mobile connections.
So we think we have a great set of assets that can bring significant value to the equation.
Thank you, <UNK>, and thank you everybody for joining us this morning.
Regina, back to you.
