Shares of Comcast (CMCSA - Free Report) dropped more than 4.5% in afternoon trading Thursday after a key company executive told investors to expect a significant drop in subscribers during the third quarter.
Speaking at the Bank of America-Merrill Lynch 2017 Media, Communications & Entertainment Conference today, Comcast executive vice president Matthew Strauss said that the company is expecting to report a quarterly loss of 100,000 to 150,000 subscribers.
While Comcast did not say it will miss earnings and revenue projections, Strauss said that Q3 is the “most competitive quarter” in recent company history and blamed competition and Hurricane Harvey for the subscriber losses.
Interestingly, Comcast wasn’t the only company to make a cautious statement at today’s media conference. In fact, Disney (DIS - Free Report) shares also slumped in midday trading after CEO Bob Iger mentioned that his media behemoth expects to post sluggish full-year earnings (also read: Why Did Disney Stock Drop Today?).
Iger also revealed more details about the company’s upcoming video streaming platform, confirming that films from the Marvel and Star Wars franchises will move exclusively to the service.
Another direct-to-consumer option invading the already-crowded streaming space will likely threaten the likes of Comcast. Traditional cable providers have been struggling with the cord-cutting threat for years, and as larger names begin to enter the market full-stop, the appeal of an old-school cable package continues to slip.
Comcast has also had to deal with the advent of “skinny packages”—a new cord-cutting option that includes fewer channels and more customization, typically at a much lower price level.
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