Markets

Comcast Says Vamos! to Spanish Website

Comcast ( CMCSA ) is making a significant push to target Spanish speaking viewers by rolling out a website with Spanish language content. Comcast competes with satellite pay-TV providers like DirecTV ( DTV ) and Dish Network ( DISH ), cable companies like Time Warner Cable ( TWC ), and telecom operators like AT&T ( T ) and Verizon (VZ). Our price estimate for Comcast stands at $29.57 , implying a roughly 23% premium to market price. Below we present our quick take on this.

Hispanic market is important and Comcast needs differentiation

According to estimates, the Hispanic population in the U.S. amounted to close to 48.4 million as of mid-2009, amounting to 16% of the total population. Additionally, about 35 million of U.S. residents spoke Spanish at home in 2008 according to estimates. This implies that a significant proportion of Hispanics, close to three-fourths, are potential Spanish customers for companies like Comcast.

The Hispanic market is large both in terms of size of its population, but also due to its viewership.

… the Hispanic audience is even more important these days, with cable and broadcast television feeling the pressure of audience fragmentation. Spanish-language Univision, with its prime-time roster of soap operas, often draws nearly as many young viewers as broadcast networks ABC, CBS, Fox and Comcast-controlled NBC - and sometimes more. (( Comcast seeks edge in Hispanic market with website , MSN online citing Reuters, Mar 7, 2011))

Its website for Spanish language content could provide an edge to that end. Research firm eMarketer estimates the Hispanic online market is around 30 million people in 2010. Add to this the growing trend of shows and movies moving online as Internet TV takes off. In short, Comcast is trying to differentiate itself against its competitors in the hopes of stopping subscriber losses by focusing itself on a rapidly growing and important demographic while tapping into the current trend of content moving online.

You can modify the driver below to see how improvement in market share trends can help Comcast.

See our full analysis for Comcas.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

T DISH CMCSA

Other Topics

Investing Stocks US Markets

Latest Markets Videos