Strategy Analytics: Comcast Sees Sixteenth Quarter of Pay TV Subscriber Losses

High Speed Internet is Largest Revenue Contributor

BOSTON--(BUSINESS WIRE)-- For the sixteenth consecutive quarter, US Cable powerhouse Comcast (CMCSA) saw net losses to its Pay TV subscriber rolls, shedding 165,000 video subs in Q3’11. Despite lackluster Pay TV performance, Comcast’s High Speed Internet (HSI) business continues to compensate for video losses. Comcast added 261,000 new HSI subscribers in the third quarter, according to a report just published by Strategy Analytics.

Comcast’s HSI business is its fastest growing segment, with the subscriber base growing 7 percent year-over-year. Broadband revenues accounted for 22 percent of overall cable revenues in the Q3’11, the largest contributor to revenue growth, according to the company.

“It’s really a ‘good news-bad news’ story for Comcast,” noted Ben Piper, Director of the Strategy Analytics Service Provider Strategies service. “While the high margin broadband business is bolstering the company’s revenue growth, as a highly commoditized consumer offering, broadband is challenging to differentiate, and comes with low perceived switching costs. This potentially increases the company’s churn exposure.”

This report, the latest in a new series of "Service Provider Quarterly Recap and Guidance" capsules, provides clients a snapshot of quarterly performance by selected global Service Providers, tracks key financial metrics, subscriber and ARPU trends, and offers forecasted guidance on year-end revenues, ARPU, and subscriber numbers.

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com/.

CONTACT:

Strategy Analytics, Inc.
US Contact:
Ben Piper, +1 617-614-0700
bpiper@strategyanalytics.com

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:   Entertainment  TV and Radio  Technology  Consumer Electronics  Internet  Audio/Video  Telecommunications

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