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The Economy Is Not Comcastic
Company sees slowdown during second quarter...
by Karl Bode Friday 29-May-2009 tags: business · cable · stats · consumers · Comcast
Comcast CEO Brian Roberts told investors at a Sanford Berstein conference today in New York City that the company was still struggling with the recession and slow housing boom. "We’re really not seeing a surging of disconnects," notes Roberts. "We’re just not seeing a surging of orders,” he says. While Comcast still had a pretty spectacular first quarter in terms of earnings and subscriber additions, the company says they're seeing some slowdowns as we move through the second quarter. According to Roberts, "there are just less opportunities to sell new things right now." On the bright side, new data suggests that Comcast's effort to improve their customer satisfaction are starting to pay small dividends.

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jmycknshk
...bring your green hat

join:2004-07-02
West Chester, PA

gee, ya think...

...it has anything to do with FIOS?
me1212

join:2008-11-20
Pleasant Hill, MO

Re: gee, ya think...

I would not be surprised.
caco
Premium
join:2005-03-10
Whittier, AK
No it doesn't. If you haven't noticed people have been losing their jobs left and right for last couple of months and forclosures are up not down so not a lot of cable installs in brand new developements. Fios footprint is also miniscule compared to Comcast

No tv or radio in your house?
--
»www.seabee.navy.mil

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
kudos:2
said by jmycknshk:

...it has anything to do with FIOS?
No.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by jmycknshk:

...it has anything to do with FIOS?
You should pay attention and read:

"We’re really not seeing a surging of disconnects," notes Roberts. "We’re just not seeing a surging of orders,”

If it were FiOS, they'd be attributing the slowdown to an increase in disconnects. not a slowdown in orders.

ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
kudos:4

Re: gee, ya think...

While I doubt FIOS is the huge factor, I am sure it is not helping any as people move into the areas served by both. Aint competition grand?

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
said by jmycknshk:

...it has anything to do with FIOS?
Nope.
--
When you can't make them see the light, make them feel the heat.
-Ronald Reagan-


jt4

@comcast.net
i dont think its fios because it not in that many comcast markets. i think alot of people are going with slower hsi service. like 3mb instead of 6 or 12 depending on where you live.
ITALIAN926

join:2003-08-16
kudos:1
Reviews:
·Verizon FiOS

1 edit

Re: gee, ya think...

nope, no, nope, no, nope.

Verizon is adding 300,000 video subs every quarter and you guys think this isnt affecting Comcast. Obviously you all have tons of common sense. I guess they arent affecting ANY cable company in this matter.

:rolleyes:
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: gee, ya think...

Yea... as did AT&T U-Verse and while they were adding a ton of customers, you think it slowed Comcast down then? no..

Seriously, this mentality that it's "Down with cable" or "Down with Comcast" is childish and fanboy at best.

As it's been said, the economy is in the hole.. further, you don't think people might be chose satellite? You think they may be choosing to go with out?

The fact they aren't LOSING customers yet aren't GAINING customers means this is just echoing the economic slow down..

FiOS is not king.. FiOS is not God.. and FiOS is not the end of all.. Besides, how do you know that FiOS wouldn't be adding more than just 300,000 subs?
ITALIAN926

join:2003-08-16
kudos:1
Reviews:
·Verizon FiOS

1 edit

Re: gee, ya think...

How simple minded can you be? Even if FiOS took away ONE Comcast customer, that is hurting Comcasts revenue's ; is it not !?

The actual reality of the situation is that its not ONE its THOUSANDS of subscribers Comcast is losing to FiOS... and Comcast would be posting much bigger video subscriber growth right now had FiOS not existed.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: gee, ya think...

Simple minded? hahahahah.. shut up.

Anyway.. no.. it's not "thousands".. did you not read? Comcast lost no customers.. they're not gaining.. you can't "lose" what you "don't have".... and you talk about simple minded.

You also talk about "losing to FiOS"... how do you know they are not being "lost" to Satellite ... or simply never there to begin with? ... you don't. Again, if you haven't figured it out, there are people that are simply NOT BUYING...

And the next time you start a message with an insult, why don't you remember the words of Dick Cheney and go F*ck yourself. The insults are getting old!
ITALIAN926

join:2003-08-16
kudos:1
Reviews:
·Verizon FiOS

Re: gee, ya think...

Thanks for supplying more evidence to my accusations. Youre saying Comcast has not lost a single customer to FiOS now.
HAHAHAHAHAHA

There are thousands of FiOS technicians replacing Comcast STB's and modems every day in favor of the FiOS brand. FiOS is adding 300k video subs every quarter and youre implying these customers are all on rabbit ears !

I dont care what the article says. It is a quaranteed FACT that Comcast is LOSING CUSTOMERS to FiOS. Whatever numbers Comcast is posting every quarter would be greatly improved if FiOS did not exist.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: gee, ya think...

Hey fanboi,

When you take a lesson in math, come talk.. until then.. there is no point in this.
ITALIAN926

join:2003-08-16
kudos:1
Reviews:
·Verizon FiOS

2 edits

Re: gee, ya think...

Now thats pretty funny telling me I need math lessons. Incredibly ironic.

Heres YOUR first lesson.

If Comcast says they broke even this quarter .. no gains or losses .... They would have actually GAINED customers had FiOS not existed. Especially in this timeframe with the digital conversion on June 12th . These cable companies should be making a KILLING in subscriber growth !

How the hell do you not see this as a loss? FiOS is TAKING AWAY their subscriber growth !

Would you mind sending me your annual rate increases in your salary? I'll email you my home address. I mean, you dont think losing your potential gains are a loss. LOL.

Nice conversatin' with ya..
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: gee, ya think...

IF THEY NEVER HAD THE CUSTOMER, THEN IT WASN'T THEIR'S TO LOSE IN THE FIRST PLACE!

Any court of law is going to tell you that you can't be paid on potential gains.. I think that high up in our land will dictate the same through out.. Who's to say they lost them to FiOS? How do you know they weren't not gained by the dish providers?

It's not a "loss" becuase there was nothing gained.. AND, since the whole economy is on a down turn together, not many people are gaining at all anyway.. FURTHER.. if EVERYONE is at a down turn, and Comcast stayed flat, maybe they DID gain.. maybe they staved off losses which IS a gain..

Stop with the fanboi arguments.. they don't work. I know you want to hate comcast and cable in general.. good for you.. shout it from a mountain top.. but to sit here and try to tell me I'm wrong at the same time of you simply saying so.. well, I can't help you.

YOU CAN'T LOSE WHAT YOU DON'T HAVE!

You want to simply see it your way.. that's fine for you.. but the rest of the world will see it for what it is.. YOU CAN'T LOSE WHAT YOU DON'T HAVE!

I swear... I'd go on, but the mods would remove this post!
ITALIAN926

join:2003-08-16
kudos:1
Reviews:
·Verizon FiOS

2 edits

Re: gee, ya think...

When a Verizon tech went into someones house last month.. removed a Comcast cable modem and 3 set-top boxes, that wasnt a LOSS for Comcast? Interesting.

This didnt happen once though. It happened a thousand times. Last quarter Vz added 300k video subs. According to you, Comcast didnt lose any customers or any other cable company for that matter, please tell me where these 300k subscribers came from. Actually... dont... because this is just a glass half empty or half full argument.

fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

1 edit

Re: gee, ya think...

I didn't write the article or the numbers.. but thank you for making this about me and not the article.. or did you not read?

Let me recap for you:

Comcast CEO Brian Roberts told investors at a Sanford Berstein conference today in New York City that the company was still struggling with the recession and slow housing boom. "We’re really not seeing a surging of disconnects," notes Roberts. "We’re just not seeing a surging of orders,” he says. While Comcast still had a pretty spectacular first quarter in terms of earnings and subscriber additions, the company says they're seeing some slowdowns as we move through the second quarter. According to Roberts, "there are just less opportunities to sell new things right now."
k1ll3rdr4g0n

join:2005-03-19
Homer Glen, IL
said by ITALIAN926:

nope, no, nope, no, nope.

Verizon is adding 300,000 video subs every quarter and you guys think this isnt affecting Comcast. Obviously you all have tons of common sense. I guess they arent affecting ANY cable company in this matter.

:rolleyes:
Apparently you must live a different universe. In this universe ISPs hold a tight monopoly over an area. I would love to get Verizon FiOS, but I can't because of my Comopoly. I really doubt that Verizon is deploying FiOS in the same areas as Comcast. In fact I believe they can't due to specific agreements with different towns. And yes, you are right, common sense tells us this really isn't affecting any ISP as of yet due to the monopoly/duopolies that ISPs hold over an area. Sure, it makes customers think about buying a service, and due the economy if they know that another ISP exists out there that is better then they make hold out until the better ISP comes around if they don't already have HSI.

Btw, you don't have to repeat yourself, we can hear you loud and clear the first time .

jmycknshk
...bring your green hat

join:2004-07-02
West Chester, PA

Re: gee, ya think...

I really doubt that Verizon is deploying FiOS in the same areas as Comcast. In fact I believe they can't due to specific agreements with different towns.
actually, around philly and the surrounding areas, many people now have the choice of both. we just switched from comcastic to fios.
--
Blogging is fun... »techblik.blogspot.com
k1ll3rdr4g0n

join:2005-03-19
Homer Glen, IL

Re: gee, ya think...

said by jmycknshk:

I really doubt that Verizon is deploying FiOS in the same areas as Comcast. In fact I believe they can't due to specific agreements with different towns.
actually, around philly and the surrounding areas, many people now have the choice of both. we just switched from comcastic to fios.
Interesting, but I think that generally they wont start competition. In any case, I still consider the different ISPs a monopoly because they don't line share like with telecos. I can go where ever I want for phone or DSL service, but broadband over coax? Or broadband over fiber? I can dream can't I?
ITALIAN926

join:2003-08-16
kudos:1
Actually, I was just conversatin with Fiberguy, saying the same things over and over... cuz he's got a thick head I didnt think anyone else was reading this anymore. LOL

Rickez
Goinginsane

join:2000-09-02
Three Rivers, MA

Current customers

Why can't these companies strive with current subscriptions to service?
--
Got a one way ticket, going the wrong way....
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Current customers

They want more money.

S_engineer
Premium
join:2007-05-16
Chicago, IL

Re: Current customers

said by me1212:

They want more money.
Hence the reason for the "cap and overcharge" argument put forth by the carriers.
--
BF69~~~Please stop suffocating gerbils!
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Current customers

Actually TW's CEO said that is was to fight off internet video, he even said so in the article they have here on DSLR today.

espaeth
Digital Plumber
Premium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
Reviews:
·Clear Wireless

Re: Current customers

said by me1212:

Actually TW's CEO said that is was to fight off internet video, he even said so in the article they have here on DSLR today.
I have to imagine that quote was taken slightly out of context.

Impossible scaling factors aside, the funding for the development of content by media companies (like Viacom, Disney, NBC/Universal, CBS Entertainment, etc) comes from public broadcast and traditional cable and satellite paid TV providers. Should those contracts dry up due to lack of public demand, the money stream to support the development of content would need to still come from somewhere. The current online distribution offerings like that of Hulu are a loss leader. They're giving it away to drive interest in their programming and get people to watch more TV.

It's like coupons for a local store offering something for free. They do that to get you in the store so that as long as you're there you'll pick up other things and give them more business. Hulu is one of those coupons -- its purpose is to drive more people to TV, it cannot provide long term operations any more than a store can stay in business by simply giving everything away for free.
openbox9

join:2004-01-26
Alexandria, VA
kudos:1
The only way to grow revenue doing so is to increase cost to the consumer. Are you interested in paying more per month?

baineschile
2600 ways to live
Premium
join:2008-05-10
Sterling Heights, MI
Reviews:
·Comcast
·magicjack.com

Re: Current customers

said by openbox9:

The only way to grow revenue doing so is to increase cost to the consumer. Are you interested in paying more per month?
Not true at all. You could decrease operating costs as well, while keeping prices steady. But most people WANT more HD and D3, which is why those costs havent gone down.
openbox9

join:2004-01-26
Alexandria, VA
kudos:1

Re: Current customers

Decreasing costs does not increase revenue, it increase net income. Both are important for investors, but they are different.
jayjay5

join:2008-06-09
said by openbox9:

The only way to grow revenue doing so is to increase cost to the consumer. Are you interested in paying more per month?
Speak in absolutes often?

How about increasing customer density on existing cable networks? That's what increasing customer satisfaction may help. Also, offering more services on existing networks can increase revenue.
openbox9

join:2004-01-26
Alexandria, VA
kudos:1

Re: Current customers

Yes, increasing customer density and offering additional services will increase revenue, but the original question was why companies can't survive with their existing subscriptions to services.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

1 edit
While companies can 'survive' on current subscriptions - the reality is that no business is out there to merely survive.
If they don't beat the competition or grow on their own accord,
a) Competition will beat them (force them into BK)
b) Investors will pull their money and find a more attractive (higher profit making) company to invest in.

jmn1207
Premium
join:2000-07-19
Reston, VA
said by Rickez:

Why can't these companies strive with current subscriptions to service?
Any publicly traded company has to grow, or promise to grow, in order to gain investment dollars to support their business.

See 28 replies to this post

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by Rickez:

Why can't these companies strive with current subscriptions to service?
Do you buy stock to have it stay the same value?

Absolutely not. You buy stock to have it appreciate in value.

The only way to have it appreciate in value is to grow.
Andy S

join:2009-05-14
Stockbridge, GA

Re: Current customers

said by fifty nine:

said by Rickez:

Why can't these companies strive with current subscriptions to service?
Do you buy stock to have it stay the same value?

Absolutely not. You buy stock to have it appreciate in value.

The only way to have it appreciate in value is to grow.
Actually your investment can still "grow" without it appreciating in value by dividend reinvestment. I have had stocks that keep thier same value but pay nice dividends. Your thinking of Growth stocks.

Capitolism with no restraint can be as bad as communism with no restraint.

Stock value is nothing more than an arbitrary number that people "believe" it is worth. That is why the market is always in flux.
jayjay5

join:2008-06-09

Re: Current customers

said by Andy S:

Stock value is nothing more than an arbitrary number that people "believe" it is worth. That is why the market is always in flux.
There is another reason stocks fluctuate a lot. It has to do with the 401k retirement incentives (brought to us by the government and their tax policies). The 401k (and other programs) has put vast amounts of money into the stock markets and that has grossly perverted how companies behave because now perceived value (and stock price) can change dramatically in a short period of time. What this does is make CEO's and others in the company do things that would seem self destructive in the long run because in the short run, it can work. This again is corporatism because this 401k money is a government 'incentive' program that helps the stock market and CEO's.

Again, this is NOT capitalism, it is corporatism. Corporatism is what makes our system evil/corrupt. Yes it is a deeply flawed system, just replace 'capitalism' with 'corporatism' with all the complaints and also look to how federal policy affects the problem and you will see their hand trying to play god..

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
said by Rickez:

Why can't these companies strive with current subscriptions to service?
Its probably best if you re-think that statement....
--
When you can't make them see the light, make them feel the heat.
-Ronald Reagan-

Mark F

join:2007-08-01
Fort Wayne, IN
All FIOS TV customers, in our city, are being dumped by Verizon. FIOS TV is so popular that they can pick and choose who they serve. And, they don't want to serve us. We are being sold to some company with zero experience in delivering TV service.

Well, it was nice while it lasted. Pray it doesn't happen to you.
MF

BlitzenZeus
Burnt Out Cynic
Premium
join:2000-01-13
kudos:1
Reviews:
·Frontier FiOS
·Verizon FiOS

Saturation

For the most part Comcast had most of the customers they were going to get, competition did play a part is this with areas offering, and how these carriers don't value current customers, so some went to another carriers to get better... everything. The economy was part of it also, people cutting back on luxuries.

Comcast got a ton of new customers for the $10 basic who didn't have service already with the digital conversion, but these customers won't bring them a ton of profit, just a little extra income, hoping they get one of their digital packages in the future.

The problem I see with all these companies is all of them try to sign you up with low prices, but after that is over you're paying full price per month, no breaks. So many people play leapfrog with services to get onto another promotional deal, but if one of these providers would just keep their prices as low as their promotional deals they would clean up, if they service quality was up to par.
--
My hourly rates:
$25 per hour.
$35 per hour if you want to watch.
$45 per hour if you want to help.
$75 per hour if you tried to fix it, and failed.
$125 per hour if you called tech support, and didn't fix the issue while making things worse

Voyager2K2

join:2001-10-04
Wayne, PA

Re: Saturation

said by BlitzenZeus:

For the most part Comcast had most of the customers they were going to get, competition did play a part is this with areas offering, and how these carriers don't value current customers, so some went to another carriers to get better... everything. The economy was part of it also, people cutting back on luxuries.
I dropped Comcast like a bad habit as soon as FIOS was available in my area.
I will do so at my business in Philly as soon as FIOS is offered.
Comcast has been nothing more than a recurring headache.

SLD
Premium
join:2002-04-17
San Francisco, CA

I'm glad that...

I'm glad that I cancelled my cable TV before the economic downturn, so they didn't confuse my disgust with necessity.

See 6 replies to this post

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