Comcast believes its business will fall short of predictions as a declining economy and strengthened competitors slow the cable giant’s growth. The Wall Street Journal reports the firm will add 500K fewer subscribers than it had previously expected, and expects to pay out 5% more in capital spending than predicted by earlier forecasts. The firm's shares have fallen 30% this year.
The nation’s largest cable provider is feeling the effects of the slowed housing sector, which squeezes new demand for their services. Competition with satellite providers such as DirecTV is also taking a bite out of traditional cable. "We are seeing increasing competition and a softer economy and, as a result, a slightly slower growth rate” said Comcast’s co-CFO.