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|  Corydon Cultivant son jardin Premium join:2008-02-18 Denver, CO clubs:
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1 edit | Re: Loss of basic video subscribers is a long term worry I doubt competition with FiOS or U-Verse has much to do with the decline in basic subs.
These are the people that Comcast is trying to push into the digital tiers, so the channels available to basic subscribers is slowly being whittled away. These are also the people who are likely to be hit harder by the softening economy. Finally, these are the people most sensitive to price increases.
I would imagine that Digital, HSI and VoIP are much more profitable areas; Comcast would probably rather have all of their subs on digital tiers and none on analog. As long as those are growing, they'll be fine.
Edit: I note that Comcast's share price is up about a dollar on the news, so investors don't seem too worried either. | |
|  |   TKJunkMail Enjoy the sun Premium join:2002-03-03 Avalon, NJ
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| Re: Loss of basic video subscribers is a long term worry said by Corydon :I would imagine that Digital, HSI and VoIP are much more profitable areas; Comcast would probably rather have all of their subs on digital tiers and none on analog. As long as those are growing, they'll be fine. Edit: I note that Comcast's share price is up about a dollar on the news, so investors don't seem too worried either. The basic subscriber number includes all the other categories(and not just analog base tier subscribers). So, when you look at Comcast subscribers, if they don't have the basic subscriber, then they can't upsell them to the higher digital tiers, HSI, VOIP, etc.
So yes, digital services are more profitable, but the digital services are built on top of the basic subscriber number. Keep losing basic subscribers and the number of upsells to digital services will start to decline as well. -- My BLOG .. .. Internet News .. .. My Web Page | |
|  |  |  Corydon Cultivant son jardin Premium join:2008-02-18 Denver, CO clubs:
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| Re: Loss of basic video subscribers is a long term worry Thanks for the clarification...it's handy having people who know how to read the financials around 
It does lead to an interesting question: is it better to have fewer customers with a fatter profit margin or more customers with a leaner one?
I'd guess that, from a customer service standpoint at least, the former is the better scenario (assuming everything else is equal—staffing, resources, capex, etc.) -- My opinions are my own. No-one else would want them! | |
|  |  |  |  |   MrMoody Carbon Based Lifeform
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| said by TKJunkMail :Comcast keeps losing basic video subscribers. ... But the continual loss of basic video subscribers is a trend that will eventually cost them down the road as they have fewer and fewer cable connected customers. Yes. And why are they losing subscribers? Competition from FiOS and UVerse? Puhleeze, they're still a drop in the bucket and DirecTV/Dish have been around as video competitors for ages.
I think there are three primary reasons:
1. Semiannual increases far exceeding inflation cause people to get fed up and unplug. 2. ATSC is a such a huge improvement over analog in many places, people who try it on their new widescreen TV wonder if they really need a $60 escalating cable bill for an inferior picture. So unless they need HBO or ESPN, they unplug too. 3. Comcast's legendary poor customer service drives customers away as well. -- The public is a poor business manager. | |
|  |  jmallory
join:2005-11-02 Clawson, MI
| Re: Loss of basic video subscribers is a long term worry said by MrMoody :Yes. And why are they losing subscribers? Competition from FiOS and UVerse? Puhleeze, they're still a drop in the bucket and DirecTV/Dish have been around as video competitors for ages. I think there are three primary reasons: 1. Semiannual increases far exceeding inflation cause people to get fed up and unplug. 2. ATSC is a such a huge improvement over analog in many places, people who try it on their new widescreen TV wonder if they really need a $60 escalating cable bill for an inferior picture. So unless they need HBO or ESPN, they unplug too. 3. Comcast's legendary poor customer service drives customers away as well. Semi Annual Increases Above Inflation compared to what? Energy? Food? I'd be happy if gas only went up Semi Annually. Plus, it costs Comcast more to do business each day when you have a fleet of trucks to maintain and gas up.
I think what you are seeing in the basic subs is the effect of double digit inflation in energy and food taking it's toll on the less affluent / fixed income cable subscriber who only subscribes to basic. | |
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