500,000 Comcast Subscribers Will Cut the Cord This Quarter
Comcast (NASDAQ: CMCSA) warned investors cord-cutting would get worse in 2020 all the way back in January. That's largely due to a price increase it made at the start of the year. Combined with the economic impact of COVID-19, Comcast's pay-TV business is struggling to keep subscribers.
During an investors conference earlier this month, CFO Mike Cavanagh reiterated comments he made during Comcast's first-quarter earnings call. "Our expectation is that the amount of spread year-over-year will be about the same in the second quarter versus a year ago as it was in the first quarter."
Comcast lost 281,000 more residential video subscribers in the first quarter of 2020 than it did last year. If the spread remains the same, it'll lose 490,000 subscribers in the second quarter. Add in business subscriber losses, and Comcast is looking at potentially losing over 500,000 video subscribers by the time June ends.
Source Fool.com
