Comcast is going to hike prices for cable customers as it continues to lose its subscribers

Comcast cable subscribers have to be ready to pay more. On Thursday, the company said that rate “adjustments” are prepared for 2020, as cable customers are shedding their bundled cable and internet packages for benefit of streaming channels.

Comcast’s condition in Fourth Quarter

Cable division of the company has persisted to lose subscribers expected in the fourth quarter at a quicker rate than, even though those losses became sluggish somewhat from a year ago. However, the company is still leading Wall Street’s expectations. Even though the results of Comcast for the fourth quarter were hit by lost cable subscribers and a terrible box office collection for the movie Cats, the company remained positive by adding broadband subscribers, raising its profits 26 percent.

Brian Roberts, CEO of Comcast said that the company is now looking forward to the July launch of Peacock, its streaming service. “We needed to pivot the whole company to the streaming world and I think what’s exciting is how well our cable company has done that,” he said. “Peacock will go right back for the advertisers and get you in a growing market, taking advantage of streaming with a free product as well.”

The outgoing chairman of NBC Universal, Stephen Burke, has a thought that Comcast has the capability to become a major player in the streaming wars, despite coming late in the streaming game. “I think our company is better positioned as the world moves to streaming than any other company in the world. We can make more money in streaming than anyone else,” Burke stated during a conference call following the earnings report.

Surpassed Wall Street’s Expectations

Cable division of the company lost 149,000 subscribers in the fourth quarter of 2019, even though it deferred its planned rate increases to 2020. Comcast included 442,000 broadband subscribers in the fourth quarter, which is way greater than 378,000 subscribers that Wall Street was expecting.

Now talking about the entertainment division, even though Cats didn’t perform that well at the box office, the NBC Universal segment of Comcast (which consists of NBC Entertainment and Universal Pictures) observed revenue of $9.15 billion, a drop of about 2.6 percent compared to the quarter of last year. The filmed entertainment division observed a revenue decline of 21 percent from a year ago to $1.6 billion.

Filing by the company does not specifically refer to the movie Catsinstead, it indicates to “lower theatrical revenue” for the quarter. It also highlights the “volume and strength of releases in last year’s fourth quarter,” considering Dr. Seuss’ The Grinch and Halloween, which were strong performers of 2018 for the filmed entertainment division.

Peacock is engaged to launch on July 15th with three tiers of service, including a free option that includes advertisements and the $10-per-month Peacock Premium.

Hello, I’m Anna Yeo. If you like my news coverage, please drop a good word in my inbox. I’m journalist by profession and have been part of many major reporting across the globe. I like to write crisp and factual news. I have completed my masters degree in journalism. Feel free to contact me at [email protected]

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