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Continuing to position its broadband business as its growth engine going forward, Comcast Cable CEO Dave Watson told investors Monday that the company actually comes out ahead when certain “low end” customers ditch pay TV but keep broadband.
“It’s actually accretive when that happens,” noted Watson, speaking at the MoffettNathanson 5th Annual Media & Communications Summit in New York.
With each customer that drops video, Watson pointed out, Comcast’s programming costs decline. Since most video products are sold in discounted bundles, the price this customer pays for broadband increases. Meanwhile, Comcast has less CPE and an overall less complicated customer relationship to manage.
“It’s a manageable transition,” Watson noted.
Comcast lost another 93,000 pay TV customers in the first quarter. And as Re/code noted, revenue from residential broadband...