Comcast shares drop on lowered expectations
Has cable's golden age ended? Cable-TV subscriptions were long seen as recession-proof. But as their price continues to soar, at last, consumers are voting with their pocketbooks. Comcast shares dropped 12.3 percent Wednesday after the company lowered earnings and growth forecasts. Added competition from Verizon, satellite providers and other cable companies took most of the blame as the triple-play price war continues, driving down average revenue per customer across the industry. On top of that, capital spending is up as Comcast rolls out more HD channels and video-on-demand. We would suggest that Comcast stockholders pray for strong growth, but after the cable giant blocked the Bible, it might not be the best idea.