Comcast’s shares fell nearly 10% on Monday after Cable CEO Dave Watson informed investors that the company expects to lose more than 100,000 broadband subscribers during the fourth quarter.
Speaking at the UBS Global Media and Communications Conference, Watson highlighted the ongoing challenges posed by a “competitively intense” market.
Broadband growth has been slowing, weighed down by a dip in home sales—fewer moves mean fewer new subscriptions.
Compounding the issue, wireless competitors like Verizon and T-Mobile have attracted price-sensitive customers, further chipping away at Comcast’s subscriber base.
Watson described the competitive landscape as “pretty consistent throughout the year,” particularly among budget-conscious consumers.
While the company continues to face losses, Watson noted that its premium broadband packages remain stable, offering a measure of resilience in its business.
These high-end services cater to customers who demand faster and more reliable connectivity, underscoring Comcast’s ability to retain value-driven clients despite market headwinds.
The third quarter brought some improvement, with broadband net losses narrowing to 87,000 customers.
Excluding the impact of the government’s Affordable Connectivity Program ending, Comcast even managed to gain 9,000 subscribers.
Watson attributed this to seasonal trends, such as back-to-school demand, and marketing efforts around NBCUniversal’s Summer Olympics.
With nearly 32 million domestic broadband customers as of September 30, Comcast remains a major player in the broadband space.
However, as Watson’s comments suggest, the road ahead looks challenging, with no immediate relief from fierce competition and shifting consumer behaviors.
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