IPTV Milestone: Netflix Exceeds Comcast Subscriber Numbers

Published 4 years ago by

netflix exceeds comcast subscribers IPTV Milestone: Netflix Exceeds Comcast Subscriber Numbers

Internet streaming service Netflix has passed a major hurdle in its quest for video dominance: its worldwide subscriber count is higher than Comcast’s US numbers.

Netflix announced the impressive accomplishment in its quarterly earnings call. The company added more than three million subscribers in the first three months of 2010 alone, bringing its total to 23.6 million. The exact number of current Comcast subscribers isn’t known, but has been steadily declining: in the fourth quarter of last year they lost 135,000 viewers for a total of 22.8 million.

Barring a huge influx of cable customers, the numbers make Netflix the largest video subscription service in the U.S. (Less than a million Netflix customers reside in Canada, the company’ only foreign market.) Cable companies all over the country are feeling the pinch as more and more households drop expensive cable contracts for Internet-based alternatives.

Netflix isn’t resting on its haunches, either. In addition to an ever-widening array of Netflix-compatible smartphones, tablets and set-top boxes, the company continues to make aggressive content deals with partners like CBS and Lionsgate. Netflix is even entering the production game, making rivals of HBO and Showtime with its first original programming – Social Network director┬áDavid Fincher’s new series House of Cards will be exclusive to the service.

Of course, comparing Netflix to Comcast is hardly apples to oranges. Most of Netflix’s subscribers pay less than ten dollars a month, whereas the average cable bill is more than $100. Comcast isn’t exactly hurting, either: while its television subscribers continue to dwindle, it adds more and more voice and Internet connections every quarter, increasing its total revenue substantially.

And Netflix isn’t the only one entering the content game. Comcast’s merger with NBC-Universal is in its final stages – the Q1 2011 results will be the first to combine the infrastructure giant’s financial data with the radio and television mainstay.

Netflix’s primary competitor, Hulu, continues to lag behind. In February Hulu CEO Jason Kilar predicted that the number of subscribers to the $8 Hulu Plus service would pass one million this year. Again, that’s not a straight comparison, because Hulu’s free service is watched by millions and generates revenue via advertising.

As the economic slump continues into its fourth year and the country’s high-speed Internet infrastructure becomes more well-established (thanks in part to Comcast itself) we can expect to see more and more TV consumers make the switch to a digital consumption model.

Source: GigaOM via CrunchGear

Get our free email alerts on the topics and author of this article:


Post a Comment

GravatarWant to change your avatar?
Go to Gravatar.com and upload your own (we'll wait)!

 Rules: No profanity or personal attacks.
 Use a valid email address or risk being banned from commenting.

If your comment doesn't show up immediately, it may have been flagged for moderation. Please try refreshing the page first, then drop us a note and we'll retrieve it. Keep in mind that we do not allow external links in the comments.

  1. I started a subscription to Netflix (streaming only) right after Christmas ’09. I like the instant gratification of picking a movie I’m in the mood for and watching it immediately, so I skipped the the DVD by mail option. There are some movies that don’t stream that I’d like to see, but I get by. My time of watching broadcast TV (Directv) has been reduced to almost nothing since starting Netflix. The only shows I watch lately are on Syfy, BBCA, and Discovery it seems.

  2. Nowhere in this article (unless I missed it) does it indicate that Comcast isn’t a national cable provider. Now what are Netflixs numbers compared to all cable providers? Doesn’t HBO have as many subscribers (or close to it) as Netflix.

  3. @RickJM

    Good point. Netflix should be compared with all cable providers. If it did there would be a huge gap. Just the top 4 (of 25) providers bring in 66,000,000 plus subscribers.

    I never thought I would subscribe to Netflix however the rising cost of BB just to get a movie a few weeks earlier seemed like a waste.