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Comcast president bemoans broadband customer losses: “We are not winning” – Ars Technica
2025-04-24T21:08:46Z
Exec says lack of “price transparency and predictability” drove customers away.
Comcast executives apparently realized something that customers have known and complained about for years: The Internet provider’s prices aren’t transparent enough and rise too frequently.
This might not have mattered much to cable executives as long as the total number of subscribers met their targets. But after reporting a net loss of 183,000 residential broadband customers in Q1 2025, Comcast President Mike Cavanagh said the company isn’t “winning in the marketplace” during an earnings call today. The Q1 2025 customer loss was over three times larger than the net loss in Q1 2024.
While customers often have few viable options for broadband and the availability of alternatives varies widely by location, Comcast faces competition from fiber and fixed wireless ISPs.
“In this intensely competitive environment, we are not winning in the marketplace in a way that is commensurate with the strength of the network and connectivity products that I just described,” Cavanagh said. “[Cable division CEO] Dave [Watson] and his team have worked hard to understand the reasons for this disconnect and have identified two primary causes. One is price transparency and predictability and the other is the level of ease of doing business with us. The good news is that both are fixable and we are already underway with execution plans to address these challenges.”
The 183,000-subscriber loss lowered Comcast’s residential Internet subscribers to 29.19 million. Comcast also reported a first-quarter drop of 17,000 business broadband subscribers, lowering that category’s total to 2.45 million.
Comcast’s stock price fell 3.7 percent today even though its overall profit beat analyst expectations and domestic broadband revenue rose 1.7 percent year over year to $6.56 billion—a sign that Comcast is extracting more money from customers on average. “Analysts peppered Comcast executives with questions on Thursday regarding its Xfinity-branded broadband and mobile, and how the company will pivot the business,” CNBC wrote.
“We are simplifying our pricing”
Cavanagh said that Comcast plans to make changes in marketing and operations “with the highest urgency.” This means that “we are simplifying our pricing construct to make our price-to-value proposition clearer to consumers across all broadband segments,” he said.
Comcast last week announced a five-year price guarantee for broadband customers who sign up for a new package. Comcast said customers will get a “simple monthly price starting as low as $55 per month,” without having to enter a contract, giving them “freedom and flexibility to cancel at any time without penalty.” The five-year guarantee also comes with one year of Xfinity Mobile at no charge, Comcast said.
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