What's crazy is that Comcast is in a great postion to go head-to-head Netflix. They are positioned to go vertical in a way that Netflix can't even dream of.
* They have a relationship with a huge base of existing customers. They're one of the few players with a subscriber base close to Netflix (who just passed Comcast).
* They have a large network based on good technology. Sure, it's not fiber, but it's a lot better than what most of the RBOCs are sitting on, and Netflix has zero.
* As part of NBC, they have established relationships with all the major content providers.
* They own the distribution channel from content library, transport, and the end-user equipment.
The problem, from my experience, with Xfinity is that the "experience" sucks. Their cable box is a slow, buggy pile of crap. Browsing content on my cable box is only marginally better than the craptastic PPV movie systems in a cheap hotel. The new Xfinity apps for my iOS devices are a huge step up, but I'm not convinced that using my iOS device as a remote for my television is where I want to be. This is what the experience is like:
* Pick up my iPad and browser for "OnDemand" content
* Initiate playback from my iPad
* Switch to the Comcast remote to play/pause, ffwd/rwnd
* Experience huge lag in response to my control inputs from any of these devices
I've measured it, and it can take up to three full seconds for my cable box to respond to inputs. Three seconds is an eternity when you compare it to the Netflix app running on my PS3. Not to mention, with Netflix, I don't have to keep my iPad around. I can just use the PS3 remote to browse, select, play, and ffwd/rwnd content. And it's responsive.
Comcast has only themselves to blame for this situation. They're sitting on all the right pieces, and no individual component is a huge weakness if you believe that going vertical is the right approach.
In my experience, Comcast has one thing that Netflix doesn't: customers that hate them.
1. Comcast is expensive. My rates have nearly doubled, but I haven't seen any change in my service or their offerings.
2. Comcast wants you to install their hardware because they "switched to digital." Fine, but I don't need or want another appliance between me and my TV. I already have several (Wii, Xbox, etc).
3. Charging you extra to see HD. Here's a tip: if I can see HD versions of the stations that I'm already paying for just by running the tuning auto-scan, then I feel ripped off. Esp. because old 4:3 format looks terrible on my wide screen.
I agree with your sentiment that Comcast has only themselves to blame. They're trying to squeeze more and more money out of their consumers and offering little in response. Which is why I dropped them like a hot rock and got netflix and hulu accounts.
That's what blows my mind. There are very few good business reasons for Comcast to be in the position they're in. "Customers hate them" is a symptom of the underlying disease: chronic-head-up-the-ass. They have the technology and relationships to make huge headway on every one of the items you complained about. The only problem not directly addressable by technology is price, but I think there's a solution to that as well.
Apple does very well selling hardware (at a premium) that is typically 6-8 months (often more) behind the rest of the market. When they upgrade their lineup, prices typically don't change much, but the hardware is upgraded. How do they get away with this? Because they have something consumers want. They provide a great experience.
What's the lesson? Consumers will pay what you ask, and they won't complain (much), provided you give them what they want. Use your technology for good! Provide awesome services that consumers want, and no, running down a check list saying, "But we have streaming movies 'On Demand™'" isn't what we want. We want an experience that makes us happy we bought your service. Get with it!
IMHO, they should just get out of the media game and focus on their network as a service. If they are going to play the "natural monopoly" card then they need to act like it and not be buying up media outlets. It's incredible that nobody call them on this (particular) bullshit.
I reciently had cable installed in my apartment just for internet. I previously did not need internet because WiFi is available almost everywhere in my city and I can teather to my cellphone when I can't connect otherhow. In fact, the only reason I got cable internet was for torrents, streaming (netflix and hulu) and gaming. I had no TV or internet in my residence prior.
"IMHO, they should just get out of the media game and focus on their network as a service."
From a business strategy perspective, that is the absolute worst decision Comcast could make. The lower you go in the network stack, the more commoditized you become. Selling their product as a network service only would effectively make them a utility. With that comes a ton of regulation and no room to innovate.
That's my entire point though! They seem to think that they are a "utility" that deserves a "natural monopoly" status, in the meantime, they continue to inovate and compete, often unfairly, to both taxpayers and buisnesses.
* They have a relationship with a huge base of existing customers. They're one of the few players with a subscriber base close to Netflix (who just passed Comcast).
* They have a large network based on good technology. Sure, it's not fiber, but it's a lot better than what most of the RBOCs are sitting on, and Netflix has zero.
* As part of NBC, they have established relationships with all the major content providers.
* They own the distribution channel from content library, transport, and the end-user equipment.
The problem, from my experience, with Xfinity is that the "experience" sucks. Their cable box is a slow, buggy pile of crap. Browsing content on my cable box is only marginally better than the craptastic PPV movie systems in a cheap hotel. The new Xfinity apps for my iOS devices are a huge step up, but I'm not convinced that using my iOS device as a remote for my television is where I want to be. This is what the experience is like:
* Pick up my iPad and browser for "OnDemand" content * Initiate playback from my iPad * Switch to the Comcast remote to play/pause, ffwd/rwnd * Experience huge lag in response to my control inputs from any of these devices
I've measured it, and it can take up to three full seconds for my cable box to respond to inputs. Three seconds is an eternity when you compare it to the Netflix app running on my PS3. Not to mention, with Netflix, I don't have to keep my iPad around. I can just use the PS3 remote to browse, select, play, and ffwd/rwnd content. And it's responsive.
Comcast has only themselves to blame for this situation. They're sitting on all the right pieces, and no individual component is a huge weakness if you believe that going vertical is the right approach.
Such a shame.