Comcast’s profits: Sad but true
Today's Financial News - Posted April 30, 2009
The cable industry will lose a subscriber tomorrow, but there are thousands of folks willing to take my place. Is Comcast’s success truly tied to the nation’s unemployment figure?
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): Call me a tightwad. Call me un-hip. Just don’t call me a cable subscriber. I am fed up with the programming being forced into my house through that innocent-looking wire.
It is ironic my colleagues and I were discussing our issues with Comcast (NASDA:CMCSA) and its various products this morning. While not all views were negative, I revealed the seemingly anti-American news that I would no longer be a cable subscriber after tomorrow.
I am using the switch to digital TV as an opportunity to scribble out yet another monthly bill and strap up a pair of rabbit ears.
According to the company’s latest financial results, I am in the majority. A surprising number of folks are using the “DTV Transition” as an excuse to plug their TVs into Comcast’s media network.
The unemployed need something to do
After adding 247,000 digital cable customers in the fourth quarter of 2008, Comcast boosted its subscriber base by another 288,000 households during the past three months. The additional revenue stream helped the company record a 5% boost in its bottom line, a net of $778 million.
Comcast’s news comes just a day after Time Warner Cable (NYSE:TWC) revealed a surge of 121,000 customers, almost three times as many as the previous quarter.
The news gives evidence the recent downturn in subscription growth has come to an end. It is a trend that will likely last for at least the next few quarters as competition levels off and the market regains some footing.
Whether you and I believe it is right, this nation views cable as a necessity. Comcast and its competitors are selling a fairly inelastic product. As long as they can offer a product that is comparatively priced with its replacements, subscribers will be knocking on their doors.
The way I see it, the higher the nation’s unemployment rate, the higher Comcast’s subscriber roles.
Sad but true.
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May 26th, 2009 at 3:36 pm
I found this interesting while trying to research the differences between an article about Cobalt and an article about China’s CCT next mineral commodityand if there was any corralation between the two articles or was it just similarity they I noted.
Anyway, an intereting ideawithin this document about the government making an Economic stockpile of Cobalt to reduce the high expected cost market effect when supplies fall. I see the Swissare very interested in this too considering their holdings.
Do you know if the government acted on this report orif this would not really have an adverseimpact on this little american company in 2010?
I’m just a Novice staring out in this big messof investing butI ask a lot of questions, more so now I lostmoney on someone telling methey would, for a price of subscription, walk me through a sure fire trade,and it would have been had I known anything about Stop Limits then,but then he never gave the sell signal as I’m sure I was just one of many that fell for this and his investment grew from our investment losses. Have a nice day. Oh, and I am subscribed to TFN Enews from you.
Howard