In its Q1 earnings call, Comcast disclosed that it had lost over 400,000 pay TV subscribers, including both residential and business customers, for the quarter.
Comcast chief financial officer Michael Cavanagh has now commented that those losses are expected to continue in Q2. At the Credit Suisse Virtual Communications Conference Tuesday, Cavanagh said that Comcast is not planning to subsidize its video service with its broadband service, reported Multichannel.
“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. We’d love to be involved in video, but we’re not going to subsidize.”
Just before Q1 calls, analysts forecasted a major loss for Comcast and other providers for 2020.
Bernstein analyst Peter Supino estimated a total loss of 1.67 million subscribers for Comcast for the year, along with 1.08 million losses for Charter, 230,000 losses for Altice, 2.2 million losses for AT&T, and 695,000 losses for Dish.
Dish doesn’t seem to mind the declining subscriber numbers. The company is focusing on broadband and the anticipated success of Peacock which launched for Comcast customers April 15 and will launch nationwide on July 15. Comcast has “pivoted the focus to where broadband is the central product. It’s about broadband and what else can we give you to round out broadband” Cavanagh said.
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