Comcast Stock Plunges 10% Amid Broadband Subscriber Loss and Peacock Challenges
Key Points:
* Comcast (CMCSA) shares tumbled over 10% after reporting a steeper-than-anticipated decline in broadband subscribers and no subscriber growth for Peacock.
* Broadband user loss reached 131,000, exceeding CEO Dave Watson's estimate of 100,000.
* Competition from mobile providers has intensified, targeting lower-income consumers with flexible offerings.
Strategic Shift and Peacock Stagnation
* Comcast remains committed to connectivity and plans to bolster its broadband offerings by bundling with mobile services.
* Peacock subscriber growth has stalled at 36 million, despite the company's emphasis on its importance.
TV Subscribers and SpinCo Optimism
* Comcast reported a loss of 311,000 TV subscribers as consumers shift to streaming.
* The company recently introduced a new TV package with Peacock, priced below competitors like YouTube TV.
* Comcast plans to spin off its cable properties (excluding Bravo) into SpinCo, which it believes will lead in the evolving cable and digital media market.
Industry Analyst Perspective
* Analysts remain cautious about Peacock's trajectory amidst fierce competition in the streaming space.
* Some suggest that selling off TV networks remains prudent amidst ongoing cord-cutting, but buyer interest may be limited.