Comcast Fancies Itself The Tesla Of Cable

from the we're-innovative-if-we-say-we-are dept

Despite offering some of the worst customer service ever documented, Comcast has been busy lately trying to convince anybody who’ll listen that it’s on the cusp of becoming a Silicon-Valley-esque innovation giant. That’s an uphill climb for those familiar with the company’s often biannual TV rate hikes, attacks on net neutrality, or the company’s ongoing quest to sock uncompetitive markets with usage caps. High prices aren’t just a result of Comcast’s monopoly domination, you see, they’re reflections of the incredible value being delivered unto consumers by an innovation engine, the likes of which the universe has never seen.

This argument that high cable and broadband prices reflect premium quality is an idea the cable industry has used for years. Before the company was acquired, Time Warner Cable CEO Rob Marcus tried to proclaim that the company’s high prices were because it was the “Mercedes” of cable. Continuing this metaphor, Comcast recently told its hometown paper that it too only charged so much because it sees itself as the Mercedes or Tesla of the cable industry:

“We kind of don’t want to be Netflix. We don’t want an $8 or $9 product,” said Sree Kotay, Comcast’s former chief software architect and now chief technology officer and executive vice president in the cable division.

“Not to knock them or anything, but we want to be a Tesla or a Mercedes and be a premium product,” Kotay said. “The point of empowering our product and development teams is fundamentally not just about direction and ambition, it’s also about tapping into their creativity, and that’s how you make great products.”

Yeah, not to knock a Silicon Valley company that has actually been innovative, but we’re a luxury brand worth every penny because we say so. Obviously, reality doesn’t work that way. Companies that deliver premium product also deliver premium support. Take a look, for example, at Comcast’s rating on the American Customer Satisfaction Index (59), and then compare it to companies like Apple (81) or Amazon (83). Even the IRS scores higher than Comcast ever has. And that’s thanks, of course, to Comcast having among the worst customer support in the history of modern American industry.

Still, the Philadelphia Inquirer proceeds to do yeoman’s work insisting that Comcast’s now a hipper, riskier, more innovative company. Why? Because it now has foosball tables and its pricey, locked-down cable boxes suck slightly less than they used to:

“It’s part of a big transformation taking place at Comcast: converting a suit-and-tie cable company into a risk-taking Silicon Valley-like tech company that can drive revenue growth outside the cable bundle.”

Except so far there’s no indication that’s actually true. While Comcast continues to claim its new, modestly successful X1 cable box is the evidence of a profound sea change at the company, Comcast continues rumbling along with a primary focus on turf protection and harming companies actually busy disrupting.

The cable giant has been fighting tooth and nail against the FCC’s quest to bring more competition to the cable box, delivering cheaper, better set tops to all. It has been working tirelessly at capping and metering its broadband customers so that Netflix streaming is more cumbersome and costly. It lobbies for state laws that hamstring innovative public/private solutions to rural broadband gaps. It uses disgusting tactics to fight net neutrality rules protecting startups and consumers from entrenched monopolists. This is a company that thinks it has a right to charge broadband users more for basic privacy.

But yes, other than historically low satisfaction ratings, violent disdain for its customers, and a well-documented history of screwing real innovators and disruptors at every conceivable opportunity, Comcast is just like any other, hungry and innovative Silicon Valley startup. Congratulations, Comcast.

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Companies: comcast, tesla

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Comments on “Comcast Fancies Itself The Tesla Of Cable”

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33 Comments
Vidiot (profile) says:

They're Nicola Tesla?

That’s the way I first read that. But you’re right… expecting energy to flow through the ether, from the generation source (consumers’ wallets) to the load (Comcast bank accounts) despite never having established a tangible connection between them. And, as a result, seeming like a crazy person, howling at the moon, when it doesn’t go according to this wacky, disconnected theory.

(Apologies to the genius of beloved Mr. Tesla.)

Anonymous Coward says:

Re: A Premium Product?

If you take the marketing version of a “premium product”, they are! You are paying for the experience, not the quality.

I mean why pay a few dollars for an antenna that gets you unlimited free HD over the air content when you can pay hundreds a year for the exact same stuff compressed to 480p quality through a cheap and nearly unusable box!

An experience you could not get with any other company (because you are not allowed to go to any other company by law). Premium!

Anonymous Coward says:

X1 System

While the X1 System is cool… well, cool for a cable company, it is NOT innovative. The capabilities in the X1 have been culled from other companies in the video delivery space. Multi-room — Hmmm… Dish TV’s Hopper; Voice Remote – Apple TV; cloud DVR – MythTV. Also, be prepared if you move to X1 that you WILL have a service call for them to tell you that you need an amplifier. MANY customers suddenly have signal problems when they move to the X1. A $69.95 service call; is that by design, I don’t know.

Premium, not, get back in line – at the end where you rate.

Anonymous Coward says:

Re: X1 System

Also, be prepared if you move to X1 that you WILL have a service call for them to tell you that you need an amplifier. MANY customers suddenly have signal problems when they move to the X1. A $69.95 service call; is that by design, I don’t know.

When I had Comcast a few years ago I had technicians tell me that too (this was a cable modem issue, but same idea). I had one tell me that I would need an amplifier because my house was receiving a weak signal. They added one and no change.

Another tech came out. This time he was competent at his job. Never even had to enter my house. Turns out it was the cable box at the street. When Comcast last came by to run wires they used a really poorly shielded wire to run to the house. Re-ran with quality wire and suddenly everything cleared up and coming in with very strong signals.

Anonymous Coward says:

I see an East India Trading Company

When I look at Comcast, I look at what has essentially become an unofficially state sponsored monopoly. They charge what they want to whoever they want once you have become trapped by their sole choice broadband opportunities. They add charges year over year and crow about it to their shareholders. They own many of the channels that they claim are forcing them to raise rates. The entire thing is corrupted against the citizen and used to spy on us wholesale while charging us an ever increasing amount to do so.

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