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
A sign bearing Comcast's name hangs in the lobby of its state headquarters in Sandy, Utah.    (Associated Press)
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(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%.