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Comcast Faces Tough Competition as Broadband Customer Numbers Decline

Comcast, the media giant, experienced a decline in broadband customers in the third quarter, causing concern for the company. The unexpected loss of 18,000 broadband customers overshadowed the strong performance of its streaming and parks businesses. The decline in customers can be attributed to competitive pressure from wireless carriers such as Verizon and T-Mobile, who target lower-income customers.

Comcast expects to face “somewhat higher” broadband subscriber losses in the fourth quarter, further impacting its customer acquisition trends. Despite reporting a 0.9% increase in revenue to $30.12 billion, Comcast’s shares fell over 6% following the news.

The company’s streaming service, Peacock, saw a significant rise in revenue, with paid subscribers increasing by 4 million to reach 28 million. However, the advertising revenue in the content and experiences segment fell by 8.4% compared to the same quarter last year. Theme parks revenue, on the other hand, climbed 17.2% due to pent-up demand following the COVID-19 pandemic.

Comcast remains optimistic about the future of Peacock, expecting adjusted losses to peak at $2.8 billion in 2023. Despite the success of its streaming services and theme parks, the decline in broadband customers poses a significant challenge for Comcast as it faces tough competition in the market.

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