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In the meantime, Comcast which owns CNBC's parent company,
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NBCUniversal just unveiled new technology
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for its subscribers.
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Live from the National Cable Show our Julia Boorstin
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joins us with Comcast Chairman and CEO, Brian Roberts.
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Hey, Julia.
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Thanks so much Carl.
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And Brian thanks so much for talking to us today.
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You just got off the stage where you unveiled
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the next generation of Comcast operating system, X2.
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Tell us how is X2 different?
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Well, it starts with our goal
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which is to take all the intelligence
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out of the cable box and put it in the cloud.
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That allows us to innovate faster so we've made
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over a thousand changes since X1 in only a year.
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And so it's smarter,
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it's personalized,
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it's easy, it's fun,
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and it's beautiful
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and the prettiest work we've done
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and at the same time gets you to your content faster,
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it learns about your behaviors and your preferences.
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And we're pretty excited.
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You can talk to the remote control
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and change channels.
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Or do a movie search,
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or an actor search,
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a whole lot of things.
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It's, you'll have to play with it
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and I think you'll get what we're excited about.
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You played with the voice control yesterday.
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That was, that was pretty cool.
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But I thought it was interesting
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that you're integrating YouTube.
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You're allowing people to search
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either for content on the cable networks
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or on YouTube.
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But I'm wondering why you're featuring YouTube
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when you have to keep people hooked on cable content.
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Well, it's really web content.
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It might be YouTube might not.
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But f you say a passionate golfer was one of the examples
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we had and, you can see golf movies
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or you could see golf tournaments.
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Or here's how-to videos
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or clips that are of interest to me.
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You want all that information.
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So we want your experience,
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your entertainment experience,
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your relationship with Comcast
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to get you to your content faster
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and make it more fun and relevant.
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And web videos are coming on strong
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and people want them on bigger devices
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and we want to make that as seemless
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and easy as possible for you to enjoy.
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Now you're also incorporating home controls
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and I know you're pushing further
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into this home market with thermostat controls.
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How big is this Smart Home market for Comcast?
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How, could it boost your bottom line and when?
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Well, broadband is the fastest growing part
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of our company.
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And what are the limits to broadband?
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Someways almost nothing.
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We want faster speeds and one of the things we showed
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today was over three billion bits a second
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running on a cable system.
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That's 300 times faster than the first time
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I demoed broadband just a few years ago.
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So, we are looking for applications
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and home energy management, home healthcare,
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the security, video cameras, are all things
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that need broadband.
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Wireless with your fastest in-home Wi-Fi
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and your broadband connection.
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So we are trying to make it simple and easy
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for our customers.
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And so one of the things we showed
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was you can look at your energy management
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it saves you energy
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you can change your thermostats,
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your lighting, and then you can display it on your TV set
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and see how much you've accomplished
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or if you want to maybe change settings
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you can do it on your smartphone, your tablet.
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We don't care,
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we want our ecosystem to be seen, simple,
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and easy to use for products that matter.
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Now with all of these new features.
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Are they really designed to retain your subscriber base
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and keep people from cutting the cord?
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It's not to cut the cord,
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it's to engage with us
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and take advantage of this technological explosion
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that's happening for every consumer.
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Whether it's more TV choices, we're up to 40,000
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on demand choices.
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Or whether it's TV everywhere,
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whether it's, we've increased your broadband speeds
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11 times in 11 years.
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The cost per bit is plummeting
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and the value is rising.
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We're obviously trying to get you
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to engage with our products
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and therefore, to want to do business with us
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and we gotta give you great service.
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So we made, we spent a couple billion dollars
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improving our customer service
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and working every day to make it easier
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and using online tools.
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We're showing here at the convention
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how you can self-help
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and, some of the things we have planned
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for the second-half of the year,
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are a whole nother level of service innovation
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and self-control by the consumer.
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So, it's the whole package of the experience
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and obviously, we then hopefully have a good business
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if we can do all that.
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Now, there has been quite a bit of discussion
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here at the conference so far about cord cutting.
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Do you think it's a threat to your business?
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I think there's a reality that not every consumer
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wants every product.
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And so giving more choice to consumers
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is what we have to do.
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If you add up the total number of homes
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that take multi-channel video
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it's actually the same as it was last year,
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the same as it was the year before.
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As we start to get housing growth back in the country
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as I hope we will and we're starting to see
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some signs of.
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That's gonna increase the number of homes
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but some younger consumers,
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some don't take all our products,
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just use the web.
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Well, that's why we need to have the best web connection.
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And, so, you know, my goal is not to always know
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what every consumer wants
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but to make sure our company moves quickly,
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has the best platform,
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and is open-minded to the change
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that is part of our daily lives.
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But, no, I think many, many people love their television.
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The other thing you see at this convention
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is ultra high-def.
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4K coming on strong.
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Cheap cameras, lower cost devices,
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and the way high-def got started
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four times the picture quality
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and you sure want that big screen in your home
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at the same time you want a tiny screen.
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Now you mentioned broadband speeds.
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On stage just a couple of minutes ago
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you showcased some really, really high speed
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downloads and there's been a lot of talk
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about Google, getting into, you know, Google Fiber
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and saying that it's 100 times faster
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than average download speeds.
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As you push into these faster speeds
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do you see Google Fiber as a threat?
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Well, I don't know whether Google Fiber
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is a good business or a bad business for them
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and how ubiquitous it will really be.
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We are in many, many homes.
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We offer the fastest internet today.
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The more consumers want speed,
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the better it is for our company.
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That's been true for a decade,
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and what we showed today
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is we can go way beyond the speeds we offer today
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without having to rebuild our plant,
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without having to make significant investments
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like starting over and digging up all the streets.
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And, so, I think we want applications,
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and if companies like Google create momentum
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in those applications,
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we've said to them directly
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we want consumers to need more speed
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because that's gonna be a growth business for us.
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And if there's more competition, so be it.
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But I'll tell ya, I like our position
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and I think we're showing that our network
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is robust and can handle it and we want that challenge.
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So, as consumers use those high speeds
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to stream more video content,
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which is obviously very popular,
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do you see the possibility of introducing
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tiered pricing models?
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Or usage based pricing?
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Well, we have said that we're gonna experiment with that.
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Today we have a couple different options
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in some markets that we're testing.
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Ultimately we'll make determinations
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as we go but the network,
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we want consumers to use it as much as possible.
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How we price it?
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Well, we'll always evolve and change year in and year out
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based on, you know, what those needs are.
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It's not just video,
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now you've a webcam it's on all the time.
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You know, is that taking up bandwidth.
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What type of camera do you want?
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Is 4K coming?
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It's an exciting time.
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We want more usage, that's for sure.
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Certainly a lot going on.
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Now, I have to ask you about a new entrant
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into the space and a potential threat
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or disruptor, Aereo?
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The question is do you see Aereo as a threat?
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I see, right now a lot of legal challenge to Aereo.
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Our both the cable side and the content side
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of Comcast NBCUniversal,
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We think that it's, you know, not a legal system
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and it will be challenged in court.
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And we'll have to wait and see how that plays out.
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Would you consider turning NBC into a cable network
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as both News Corp and Disney have talked about,
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I'm sorry, and CBS have talked about doing with Fox?
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I think it's premature but I do think that
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that retransmition consent was the will of Congress.
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It was challenged in the Supreme Court,
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it was upheld and so it seems pretty clear
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to us that when it settles out
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there's a reasonable likelihood
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that the courts will continue to find that.
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If they don't we'll have to deal with that then.
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Carl, you want to jump in?
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Yeah, Brian some of the earlier reviews are salivating
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over the voice recognition element of X2.
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You can say, show me movies about basketball.
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It will find those for you.
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I just wonder, from a user experience,
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is the remote going away just as a handheld concept?
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I don't think so.
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In fact, one of the things we played with the last year
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is everything from gesture, to voice, to your keystroke
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and the answer is there's no answer.
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It's a little bit of each.
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There's times when one is a better than another.
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And, so, we also want to find the easiest way
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for the consumer to enjoy it.
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So, we're very open-minded to partnering
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and evolving this experience.
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What we found is the more complicated the search,
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the more you want something very specific to you,
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it's a lot of keystrokes.
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And if you could just say find Don Cheadle,
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and then, not only, on television
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in libraries, on movies,
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on channels, and on the web
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I get all that actor's information
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right there in one place by speaking that command.
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That's really cool.
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But if I just want to change channels
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it's probably an ingrained habit
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to just push the up/down button.
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So, we built this into the remote
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as compared to having separate devices
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and I think it really will be a beginning
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of a game changer.
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We've been working on it for a lot of years
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and we're pretty excited.
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Brian, I'm sure you know,
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we talked to, seemingly every day about
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just the notion of binge viewing,
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which obviously this is aimed at as well.
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But with all of that happening
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and all of these big deals at Netflix and so-on,
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is the future of linear television going to be limited
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to live sports and awards shows?
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Just almost like a niche market?
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I don't think so.
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The rush to wanna overly
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react to small changes in behavior
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is not the likely outcome.
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I think there's going to be linear channels
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but those of us who run linear channels
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need to understand that consumers have so many choices
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that they may come on something
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when it wasn't on live and they want to now catch up.
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And so one of our, elements of our guide,
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is to tell you where you are,
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help you through that process a lot faster and easier.
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At the same time advertisers still want to know
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that's the content.
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The network wants to relate you to the advertiser.
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So, having dynamic ad insertion is a big step
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that we've taken where you now can put
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a relevant ad in an on-demand non-live asset.
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And, at the same time
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I think there's an element of lean back
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that we all do when we come home and watch TV
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and we just, ah what's on?
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And I don't think that's gonna change anytime soon.
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So, I wouldn't get too overly panicked
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one way or the other.
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I think it's just enhancing the experience
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and more engagement,
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and taking advantage of the world we live in
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where sometimes you want it right now
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and sometimes you want to wait.
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Brian, it's been about four months
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since you completed your buy-out of NBCUniversal.
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Where is your perspective now
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on what the company's potential upside is?
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Well, I think the team at NBCUniversal,
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Steve Burke have a lot of momentum.
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We have many different businesses.
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We're impressed with the leadership team
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at all our businesses.
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Everything from theme parks having
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a great first quarter to cable networks,
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I always gotta mention CNBC while I'm here, and how relevant
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we are all over the world,
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our international growth, the film business,
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we have the top one and two movies in the nation
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this week, with The Purge and Fast Six.
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And NBC Broadcast and Sports.
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We got the Olympics coming up next year.
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We've got some exciting pilots,
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more diversity in those pilots,
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with everything from an exciting show,
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Crisis Point that's coming up at the Olympics,
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Michael J. Fox coming back to NBC.
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And I don't know, I think it's an exciting time.
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Over in the cable business Neil Schmidt and the team
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are executing incredibly well.
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We're adding customers.
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Our broadband business, our phone business,
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business services, we haven't talked about that.
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We raised the debt in the capital markets
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to pay for this acquisition
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at a historically low interest rate time.
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So, execute, focus,
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we've got a lot on our plate
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but we're, I think things are going well.
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And those cool new X2 features
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are gonna be rolling out this fall.
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Yes.
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Including the voice control, which I did think
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was very cool.
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Brian Roberts, thank you so much for joining us
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today at the National Cable Show.