Comcast has been bleeding cable subscribers along with the rest of the TV industry — here's how it plans to win them back

Matt Strauss Comcast 9037

  • Comcast, along with the rest of the pay-TV industry, continues
    to bleed cable subscribers.
  • While some companies have dropped prices to stymie customer
    churn, that’s not a solution for Comcast, Matt Strauss, EVP of
    Xfinity Services, told Business Insider.
  • Instead, Comcast plans to win back customers by differentiating
    its products with price and skinnier bundles.

The linear TV business has suffered as people cut the cord and
get their entertainment fix from streaming services like Netflix
and YouTube. Comcast lost 344,000 subscribers in 2018, nearly
double the 186,000 it lost the year before.

Comcast isn’t giving up on video, though, Matt Strauss, EVP of
Xfinity Services, Comcast’s consumer brand comprising broadband,
video, and voice, told Business Insider. Instead, it plans to win
back customers by developing even skinnier bundles and slicing up
product offerings. That means innovating past the traditional
“triple play” of bundling broadband, video, and phone, and
introducing more price points, Strauss said. 

Some want fast internet and a light video bundle while others
want to use a connected-TV device rather a Comcast set-top box.
Some want to use all their devices while others just want to watch
video on their phones, he said.

Comcast also will test different price points but won’t offer
deep discounts at the expense of profitability, he said.

“Our strategy is very focused on segmentation and getting more
sophisticated in putting together the right video offering for the
right customer at the right time in their life,” Strauss said.

Read more: Industry
experts think NBCU may have the winning formula when it comes to
its free streaming service

Comcast also plans to get more sophisticated about how it uses
sales channels. People who come via digital channels respond to
different offers than those who call customer service, for example,
according to Strauss. 

Comcast’s commitment to video may surprise those who predict
that cable operators will withdraw from the video business to focus
on the higher-margin broadband business.

When users drop their video service, cable providers lose the
revenue associated with that customer, but they can also reduce
their programming costs.

“We continue to be very bullish on video, but you’re just going
to see us be more focused on how we go to market with video,”
Strauss said.

SEE ALSO: Morgan
Stanley predicts that digital TV has already peaked, and offers a
bleak prediction for the future of pay TV

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Comcast has been bleeding cable subscribers along with the rest of the TV industry — here's how it plans to win them back