In this article, Comcast Cable CEO Dave Watson informed investors on Monday that the company anticipates losing over 100,000 broadband subscribers in the fourth quarter due to the highly competitive market. Following Watson’s statements at the UBS Global Media and Communications Conference on Monday, Comcast shares fell by nearly 10%.
The cable broadband sector has been experiencing a prolonged downturn. Executives attribute the decline to the sluggish real estate market, with fewer individuals subscribing to cable services when moving into new homes. Additionally, increased competition from wireless providers like Verizon and T-Mobile has significantly impacted the industry.
Watson emphasized the persistent competitive landscape, particularly among price-sensitive consumers, stating that the intensity of competition has remained consistent throughout the year. He projected that the fourth quarter would mirror the first half of the year, during which the company lost approximately “just under 100,000” customers per quarter.
Despite the challenging cable market conditions, Watson highlighted that Comcast’s broadband business has maintained stability, especially in its premium internet packages. His cautionary remarks followed a relatively improved third quarter for Comcast in terms of losses.
During the third quarter, Comcast reported a net loss of 87,000 domestic broadband customers. Excluding losses related to the conclusion of the government’s Affordable Connectivity Program, which provided discounts to eligible low-income households, the company estimated a customer growth of 9,000.
As of September 30, Comcast had nearly 32 million domestic broadband customers. Watson attributed the third-quarter improvement to seasonal factors, noting that the back-to-school period typically leads to enhanced broadband figures. He also credited NBCUniversal’s promotion of the Summer Olympics for contributing to the positive results.
It is important to disclose that Comcast owns NBCUniversal, the parent company of CNBC. NBCUniversal possesses NBC Sports and NBC Olympics, with NBC Olympics holding the U.S. broadcast rights for all Summer and Winter Games until 2032.
