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Comcast to Hit 250k New Broadband Subs in Q2 Despite Slowdown, Says Strategy Analytics,
96% Retaining Broadband
Boston, MA - August 4, 2009 – Comcast, the largest Broadband Service Provider (BSP) in the US, is expected to announce 250,000 net additional subscribers in its second quarter release later this week. This will bring the company’s total broadband customer base to nearly 15.5 million, according to analyst firm Strategy Analytics.
The second quarter—when some consumers disconnect service for the summer months—is typically the weakest for broadband service providers. While Q2’09 is expected to be weaker than the previous quarter, Strategy Analytics does not anticipate the “freefall” the market experienced in 2008. In the second quarter of 2008, Comcast saw broadband net additions plummet 43% compared to the previous quarter.
Some analysts believe that the current economic environment will exacerbate the negative effects of an already weak quarter, however, recent research from Strategy Analytics suggests that broadband is quite resilient to these factors.
“Our consumer research shows a very high ‘keep rate’ for broadband,” noted Ben Piper, analyst and Director of the Strategy Analytics Multiplay Market Dynamics service. “Ninety-six percent of Americans would hold on to their broadband service, even if economic circumstances forced them to cut back household budgets.”
Comcast is on track to approach 16 million broadband subscribers by year-end, according to Strategy Analytics.
Analyst Blog: http://www.strategyanalytics.com/blogs/dmercer
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