Comcast's Margins Have One Way To Go: Down!!!

dkreichen1968

Moderator
Staff member
#1
Make no mistake: Comcast (CMCSA) isn't doing poorly. However, it appears to have only one way to go and that is down. There are many pressures creeping into Comcast's market that will almost certainly introduce a new kind of competition that Comcast does not seem poised to deal with. Mainly, the disruption of television services by Google ( GOOG), among others, has the potential to decrease Comcast's revenues. Lower revenues will hit Comcast hard as it will drag down its profit margins, which have historically been pretty large...

So for Comcast, the inertia of disruption of its core businesses continues. It is not experiencing fast or significant challenges at this very moment but there are many new players in these markets with more consumer oriented business models. Comcast can survive as a big player in this space, but its margins will absolutely decrease as these services become commoditized. Think of it like this: Google doesn't need to bring high margins on the delivery of television and internet as content licenses and advertising more than make up for the revenue gap. Comcast will need to change its core business model in fundamental ways or lose revenue. Personally, I expect the latter.
Read More: Comcast Margins Will Only Decrease - Seeking Alpha

Let's face it, Comcast has the attitude of "We don't care, we don't have to, we're the cable company." And, since they still have 22 million customers and are often the only viable high speed ISP in certain areas I can sort of see why. But, if they don't improve their service soon (let's face it, if their customer base knew what real HD looked like they wouldn't tolerate their video service at all) they're going to find that the competition has passed them by and that they no longer have any customers under the age of 60.
 

Fringe Reception

Super Moderator, Chief Content Editor
Staff member
#2
(let's face it, if their customer base knew what real HD looked like they wouldn't tolerate their video service at all)
Dan,

Spot-on. I have lost count of how many people who have seen our FREE over-the-air reception and exclaimed WOW regarding the picture quality compared to what they pay for.

Jim
 

digitalamps

DTVUSA Jr. Member
#3
Let's face it, Comcast has the attitude of "We don't care, we don't have to, we're the cable company."
I agree, not only is there service bad at times but a good amount of there customer service people don't know how to or just plain can't help you. Either because of lack of training or incompetence, I almost think it's on purpose sometimes too.
 

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