Comcast Lost 409,000 Video Subs in Q1

The hits keeps coming for pay-TV regardless of a pandemic.

Comcast Cable April 30 reported it lost 409,000 video subscribers in the first quarter (ended March 31), which included 22,000 business accounts. That compared with 121,000 subs lost in the previous-year period, including 14,000 business accounts.

The sub losses underscore ongoing shifts how consumers watch television and stream video, including alternative channels such as online TV and subscription video-on-demand.

The cable operator ended the quarter with 19.9 million residential video subs — down 952,000 subs from the same period in 2019. It finished the period with 944,000 business subs, compared with more than 1 million during the previous-year period.

Fortunately, Comcast is the largest Internet Service Provider in the country, underscored by the addition of 477,000 broadband subs in the quarter — up from 375,000 high-speed Internet sub additions last year. Comcast ended the period with 29.1 million broadband subs compared to 27.5 million subs last year.

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Video revenue was consistent with the prior year period, due to an increase in average subscription rates, offset by a decline in the number of residential video subs. Advertising revenue was consistent with the prior year period, primarily reflecting an increase in political ad revenue, offset by reduced advertiser spending due to the coronavirus. Excluding political ad spending, advertising revenue decreased 4.6%.

“While parts of our business have been more impacted by COVID-19 than others, we have continued to innovate,” CEO Brian Roberts said in a statement. “We are distributing our content in new ways, as evidenced by the recent launch of [streaming video platform] Peacock on Xfinity X1 and Flex.

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Roberts said a strong balance sheet, portfolio of assets, and “world-class” management team would help Comcast to grow and succeed through the virus pandemic.

“This is a moment in time; and when it passes, I am very confident that the decisions we are making now will enable us to emerge from this crisis as a healthy, strong company,” he said.

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