Can Comcast's Flex Offset Its Video Subscriber Losses?
The head of Comcast's (NASDAQ: CMCSA) cable segment, Dave Watson, faces a tough challenge this year. The company was already forecasting an increase in video subscriber losses for 2020, then the novel coronavirus came to town. The impact of COVID-19 is likely to accelerate cord-cutting this year as content starts to dry up without sports or new productions and many consumers face economic hardships.
At an investor conference earlier this month, Watson noted the number of new broadband-only subscribers using its Flex streaming box product offset its video subscriber losses over the last two months.
Roku (NASDAQ: ROKU) -- the U.S. leader in connected TV devices -- has previously compared itself to Comcast and other pay-TV distributors. But its average revenue per user and gross profits are far lower than even Comcast's lowest-priced skinny bundles. And Comcast still has a long way to go before it's even close to monetizing Flex on the same level as Roku, let alone the low end of its live TV packages.
Source Fool.com
