Monday, February 5, 2007

Do Discounts Help Triple Profit??

This article is about Comcast discounting their initial rate to have cable set up. The company is based in Philly said they are splitting their stock 3 for 2 on Feb 21st. The net income totaled to 390 million or 18 cents a share and the year before it was 133 million or 6 cents a share. Then stock in Comcast fell $1.37 to $42.92 a share. Comcast projects revenue from its cable, Internet and phone business to increase by at least 12 percent this year compared to 2006. He said that the bundle packaged that they offered which was $99 a month for Internet and TV drove the business and expects it to only get better in 2007. the number of digital subscribers rose by 613,000 up from a year ago ending the year at 12.7 million. Comcast now serves 11.5 million broadband Internet customers.

I think that Comcast is doing very well, and advertising wisely. They always have ads in the paper, and on TV for the deals that they have for comcast. In that sense they are doing well. Now most of their ads show up on TV and attracts to the viewers that may not have cable Internet or DSL cable Internet. I know that a lot of people are hesitant to get cable Internet because it turns out eventually to be really expensive. My family has comcast, and we have cable Internet, and pay for the cable and Internet together. When we first got it about 4 years ago it started out expensive but then after they got some deals out we switched over to the better one, and then pay a flat rate a month. I am not saying that it is still not expensive either way but at least that it is cheaper than before. I believe that them advertising helps the business more and even if they have deals like free people installing it in their homes attracts new customers. Comcast is the major network provider here in Jacksonville. I think that one day another service provider is going to come and give them some major competition or they may already have some.

this article can be found here


Lady Shea said...

Comcast is just racking in the money like leaves! I always love seeing their commercials with the cartoon Comcast van and the little cartoon people. Pretty fuuny stuff. But anyway, about them cutting their stocks they should go for it if they think they can. Consumers love discounts and it's a proven fact that the lesser of value you sell an item the more of a profit you will gain so kudos to Comcast. I just hope they work on those blackouts that occur while watching TV when it rains. Or maybe I'm the only one having that problem.

Amy said...

I also use the Comcast cable and phone hook-up. Their customer service is very helpful when you call up about the cable. They should be since it is so expensive to have. I know I have experienced many problems with the cable box and time-outs that have had me really frustrated and have been reasons I've had it cut off and then back on many times.

Televison should be fun and relaxing not stressful. Being that Comcast is the leading company, it is a wise decision to lower rates for packages.


Jennifer said...

it's comcastic! sorry I had to. I dont care too much for their advertising. Maybe some day when I'ma copywriter I'll help them out! I have their cable-internet program and the customer service is great, I just wish I didn't have to know that. I have called far too much about cable-internet problems, they always came to fix it promptly, but why should there be this many problems? I know one of their competitors is BellSouth which I have heard good things about, but where I live it's either Comcast or no cable (something about the signal or connection...I dont know.) Good for them if they make cuts and reach out to another market...a cheaper market, I'm sure their revenue will increase. Hopefully, if they make it cheaper and they inevitably get more money, they can afford better advertising!