Comcast Corporation Q1 2009 Earnings Call Transcript

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2009-04-30 11:39:17.0

Tags: VoD, Comcast Corp., Call Transcript, Earnings, DVD, Video On Demand (VoD), Tv & Home Theater, Broadband Internet, Digital Media, Personal Technology, Home Entertainment, Telecommunications, Consumer Electronics, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Jessica Reif-Cohen - BAS-ML.

Jessica Reif-Cohen - BAS-ML

I was wondering - actually, two questions - if you could quantify the impact of over-the-air both on basic subs and any pull through on voice and data?

And secondly, can we explore video on demand a little deeper? You guys did day-and-date with Twilight. Can you talk about those results? What is it that's not taking this to another level? Is it the guides? Is it just the number of channels or is it the window?

Steve Burke

Let me answer both of those, starting with the video on demand. We are chipping away at the whole notion of day-and-date. We have a lot of films right now that are concomitant with the DVD release. We also have a number of studios that have shortened the window between the DVD release and when the films are available for video on demand.

I agree with your underlying premise that we haven't taken it to the next level in that the consumer doesn't generally believe that when a video is on DVD it's also on video on demand, but I do think we're making progress toward that. And we've been at this for awhile and continue to chip away at it.

Regarding the broadcast transition, it's actually very difficult to precisely say how many subscribers we gain because if somebody calls up and says I want to take advantage of your $9.95 lifeline offer, they could be somebody who's converting from over-the-air to cable or they could be somebody who just wants to take advantage of that offer, and at the same time there's some people who go all the way to expanded basic. So it's hard to precisely say, but clearly we had an impact and expect an impact in the second quarter as well.

If you look at the drag on effect, about between 40% and 45% of all the people that come in on that offer, the $9.95 offer, take another service or upgrade beyond that offer, so it clearly not only helps you with basic subs but helps you with high-speed data and phone.

Operator

Your next question comes from Spencer Wang - Credit Suisse.

Spencer Wang - Credit Suisse

I got on the call a little bit late so I apologize if you've already addressed this but, Steve, could you just talk a little bit about the uptake of DOCSIS 3.0? I think you guys earned 35% of your footprint.

 

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