Why Comparing Netflix to Comcast is Dopey
Netflix reported quarterly earnings (it had a good quarter) and with more than Comcast’s 22.8 million subscribers (23.6 million) headlines comparing Netflix to Comcast (i.e. “Netflix is Bigger than Comcast”) are popping up all around me. Netflix is big and has nothing to be ashamed of. But it’s not “bigger” than Comcast even if it has a few more subscribers. In fact, where it counts, Netflix is much (much, much) smaller than Comcast.
Netflix had $706 million in revenue for the quarter or roughly $10/mo/subscriber. Comcast had over $9 billion in revenue in Q4, or about $132/subscriber/mo, so basically its an order of magnitude bigger than Netflix in terms of revenue and revenue per subscriber.
And that was before Comcast completed its acquisition of NBC Universal.
Disclaimer: I’m both a very (very, very) happy Netflix customer as well as a very happy Comcast customer.