Thursday, October 26, 2017

Comcast & Charter Punished for Cord Cutting

Going Mobile!!

Comcast & Charter

Cord Cutting Accelerates!

Comcast lost 125,000 video subscribers while Charter's pay-TV rolls declined by 105,000, reflecting the broader trend of Netflix and other streaming companies luring away traditional cable customers.

Shares of Comcast were falling 1.4% to $36.31 on Thursday afternoon, with the video losses coming in at the mid-point of the revised guidance that the company provided in September. But Charter was tumbling more than 8% to $316.50 as it reported greater-than-expected subscriber losses and also missed forecasts for other key metrics.

Comcast badly wants to hold onto its video subscribers, although Chairman and CEO Brian Roberts told investors during a Thursday morning investor call that the cable operator has been preparing for the world of cord cutting.

"We anticipated this shift," Roberts said. Comcast invested in its Emmy-winning X1 entertainment operating system that allows users to watch Netflix or Alphabet's YouTube via its platform, developed a remote control that recognizes voice commands and launched the Xfinity streaming app, among other initiatives that enhance its video service.

When customers cut the cord to Comcast's pay-tv offering, Roberts and other executives suggested, they don't kill the cable operator's model.

"Broadband connectivity, both residential and business -- that's now a $20 billion-year business," Roberts said.

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