Comcast Corporation (NASDAQ:CMCSA) is confronted with some difficult queries about plans afoot for the nation’s largest cable firm after its hopes of a big network evaporated with the termination of its $45 billion Time Warner Cable Inc (NYSE:TWC) Cable deal.
Comcast which is also the owner of NBCUniversal desired Time Warner Cable to strengthen its business-service division, increase millions of subscribers and empower itself in negotiations with media firms. Hower regulators pushed back apprehending that the union of the nation’s No1 and No 2 cable firms would produce a giant that would command too much Internet access in the US and have the power to impair the nascent streaming video marketplace.
The firm has to face increasing expenditure for the movies, TV shows and sports rights it purchases without the cash inflow from Time Warner Cable subscribers and the additional influence it would have had as a larger provider.
According to Colin Dixon, an analyst with media analysis company nScreenMedia containing costs is vital as it is one of the major losses.
Further, lesser people want to pay for a conventional, costly TV package which can go up to $70 to $100 a month. Their continuous shift to online video is a reality. Comcast needs to demonstrate how it intends to deal with that.Comcast has to take into account several questions connected to industry changes and stricter regulation.
Do regulator’s issues mean that Comcast’s run of acquisitions in America is over? Charter is still chasing Bright House and according to analysts it will follow Time Warner Cable. Investors will desire to know Comcast executives’ view regarding its wireless ambitions or international expansion.
How will Comcast demonstrate that it’s adapting to a world in which people are increasingly preferring cheaper, smaller TV packages or giving up the cable cord entirely?
Investors and customers will be eager to know if it intends to follow in the footsteps of Verizon Communications Inc. (NYSE:VZ)‘s FiOS which recently debuted a cheaper, more customizable TV choice.
