Comcast Says Heated Competition is Costing It Video Subscribers

With Q3 being one of the most competitive in recent years for video subscribers, Comcast likely will end down 100,000 to 150,000 subs year over year, said Matt Strauss, executive vice president-Xfinity Services, Thursday at a Bank of America conference. He said the competition has come from new over-the-top services and from incumbent distributors increasing marketing spending and being more aggressive with offers. Strauss said hurricanes cost the company some subscribers. He said Comcast is focused on profitable subscribers instead of overall subscriber numbers, but the company could see a return to video subscriber growth. Strauss also said a major industry trend in video is an increase in time-shifting. "The future is aggregation," with Comcast as a distributor aiming at offering an increasing variety of sources on its Xfinity platform, Strauss said. He said Comcast's streaming video product, Instant TV, which was testing in Boston and Chicago, will be rolled out across its footprint later this month and into Q4. Instant TV is a skinny bundle of content and a cloud DVR, with additional programming packages available as add-ons, he said. He said Comcast will try not to cannibalize its existing video subscriber base by targeting its marketing at specifically high speed data-only customers and limiting the number of video streams. Comcast closed Thursday at $38.60, down 6.2 percent. In a note to investors, Wells Fargo analyst Marci Ryvicker said the stock movement is likely due to the Q3 subscriber news.