37% of Comcast Customers Buy 3 or 4 Products

One set of numbers from the Comcast third quarter 2017 results is instructive: Comcast details the number of customers taking single, dual-product and three-product or four-product packages.

About 30 percent of consumer customers buy just one product, a third buy two products, while 37 percent buy purchase or four products.

That matters for revenue, as a buyer of multiple products produces more revenue than an account purchasing just a single product, all other things being equal (such as the unit price of each type of product).

More significantly, purchases of bundles determine the viability of the business case itself.

Stranded assets are big problems in highly-competitive fixed network markets. Assume a typical local market where the local telco and the local cable operator are equally skilled, but where cable has an advantage in the internet access and sometimes video product segments.

Assume a typical market share structure has the cable operator getting about 60 percent market share, while the telco gets about 40 percent.

That means the telco has no revenue generated from 60 percent of its passings, while cable gets no revenue from 40 percent of consumer locations passed.

But multiple service purchases effectively boost revenue as much as having more accounts in service. In other words, selling more things to fewer customers can produce as much revenue as selling one product to nearly every location.

And that is why take rates for multiple-product bundles matter so much: business models that would fail in a single-product environment  can work, even at significantly-lower rates of customer adoption.  

Comcast Account Segments (accounts in thousands)
Category
3Q 2016
3Q 2017
Net Adds 3Q
2016
Net Adds 3Q 2017
Residential Video Customers
21,420
21,341
19
(134)
Business Services Video Customers
1,007
1,049
13
9
Total Video Customers
22,428
22,390
32
(125)





Total High-Speed Internet Customers
24,316
25,519
330
214
Residential Voice Customers
10,527
10,351
(24)
(119)
Business Services Voice Customers
1,116
1,214
26
25
Total Voice Customers
11,643
11,565
2
(94)
Total Security and Automation Customers
815
1,079
78
51
Residential Customer Relationships
26,312
26,957
175
83
Business Services Customer Relationships
2,006
2,146
43
31
Total Customer Relationships
28,318
29,104
217
115
Single Product Residential Customers
7,722
8,055
51
125
Double Product Residential Customers
8,682
8,983
97
38
Triple and Quad Product Residential Customers
9,908
9,919
26
(79)

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