Comcast's next act

[Commentary] The question now is where Comcast CEO Brian Roberts moves next. With a steady revenue stream flowing from millions of pay TV and broadband subscribers, Comcast has performed well even as the digital revolution has upended much of the media world. But a rapid reshaping of the television industry poses big challenges to Comcast and its competitors, leading some analysts to conclude that the company should push hard into next-generation wireless technology to satisfy rocketing demand for online video. Others say it should look beyond the US for growth. Not surprisingly, streaming video consumption is highest among the youngest consumers, with nearly three-quarters of households headed by someone under 35 subscribing to a service such as Netflix or Hulu Plus, according to Nielsen -- the same consumers who are least likely to be pay-TV subscribers.

Traditionally, advertisers have coveted these younger viewers. For the world’s biggest media companies, including Comcast, reaching that next generation means giving them access to content when, where and how they want to watch it. The international market is another option for Roberts. Comcast, which also owns the Universal movie studio and theme parks, has a minimal television or internet presence outside the US. With the TWC bid no longer viable, Roberts may look to the “cable cowboy” John Malone for inspiration. As a hardened squash player Roberts knows all about working the angles to win. But with the rules of the media game evolving rapidly his next shot will need to be well placed.