Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Comcast Woes Deepen as Cable Biz Feels Heat

Industry faces slumping demand and increased competition from telecoms, satellite

By Jim O'Neill,  Newser User

Posted Dec 6, 2007 10:18 AM CST

(Newser) – Comcast’s worsening financial health, reported by its new CFO yesterday, has BusinessWeek predicting rough going ahead for the cable business. Consumers hit by  the housing slump are cutting back on service, just as satellite and telecom competitors are cutting prices to get their attention. Comcast saw its stock tumble to a 20-month low after warning of below-predicted revenue and cash flow, and new subscriber declines.

"This is just the beginning," said one analyst, predicting more bad news as the housing slump continues to turn off demand while the price war intensifies. Comcast plans to respond to the dual pressures with a marketing blitz. "Competition's increased, and we've got to respond," the CFO told yesterday's conference call. Comcast traded at $18.18 yesterday, down 12%.

A sign bearing Comcast's name hangs in the lobby of its state headquarters in Sandy, Utah.
A sign bearing Comcast's name hangs in the lobby of its state headquarters in Sandy, Utah.   (Associated Press)
The Comcast Center skyscraper, center, stands above other buildings in Philadelphia in this Oct. 10, 2007 file photo. A coalition of consumer groups and legal scholars on Thursday formally asked the Federal Communications Commission to stop Comcast Corp. from interfering with file sharing by its Internet subscribers.  (AP Photo/Matt Rourke,...
The Comcast Center skyscraper, center, stands above other buildings in Philadelphia in this Oct. 10, 2007 file photo. A coalition of consumer groups and legal scholars on Thursday formally asked the Federal...   (Associated Press)
A technician for Comcast Corp. heads out on a job in this Feb. 2, 2006 file photo in Salt Lake City. Comcast Corp. shares plunged to a new annual low Wednesday, Dec. 5, 2007 after the cable operator said 2007 revenue will be lower and expenses higher than previously forecast,...
A technician for Comcast Corp. heads out on a job in this Feb. 2, 2006 file photo in Salt Lake City. Comcast Corp. shares plunged to a new annual low Wednesday, Dec. 5, 2007 after the cable operator said...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Investor Says Oust Comcast CEO; Reaction Mixed

Cable Stock Pounding Not Over Yet

Verizon Deal With Cable TV Could Be Game-Changer

NBC's Ratings Keep Sinking

Comcast Plans $10 Internet for Low-Income Families


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne