Comcast reported today that it lost 477,000 video subscribers in the second quarter of 2020. Revenue was down by 12% from a year ago to $23.7 billion.
Broadband made up for some of those losses with Comcast gaining 323,000 broadband subscribers, ahead of analysts’ average estimate of 247,000 net additions, according to research firm FactSet ahead of today’s report.
Despite the toll the pandemic took on the company, Brian Roberts, Chairman and Chief Executive Officer of Comcast was positive about the company’s ability to bounce back and see future growth.
“Overall, based on our results and the many organic growth opportunities that we have across our company, I am confident in our ability to continue to successfully navigate the impact of COVID-19, and emerge from the crisis even stronger. I could not be more proud of how our teams across Comcast Cable, NBCUniversal and Sky are together managing the business,” Roberts said.
The video customer loss was not surprising as chief financial officer Michael Cavanagh shared at the Credit Suisse Virtual Communications Conference in June that Comcast was expecting to see a drop. Cavanagh also said that Comcast is not planning to subsidize its video service with its broadband service.
“We’re not wedded to being necessarily the seller of a bundle to you in video, but we would very much if you appreciate either one of our alternatives, a bundle with X1 or a platform approach for video navigation aggregation through Flex,” Cavanagh said. “We’d love to be involved in video, but we’re not going to subsidize.”
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