While Comcast’s (NASDAQ:CMCSA) stock showed mild gains the last two week, the company remained quite busy in improving its position in the increasingly competitive market. The company launched its Internet Essentials offering that provides affordable Internet access to low-income groups in Western Wayne County. Comcast is also trying out new programming bundling to give customers more flexibility when it comes to their pay-TV subscriptions. The idea is to allow customers to retain some form of programming subscription and as a result, stop subscriber losses. Furthermore, Comcast announced that it will bring on-demand programming to Microsoft’s (NASDAQ:MSFT) Xbox 360 and also expressed its interest to the FCC regarding its IPTV service to deliver programming to PCs and Macs.
In essence, the company is proactively trying several approaches to solidify its eroding pay-TV business, something that its competitor Time Warner Cable (NYSE:TWC) hasn’t really done.
Over time, Comcast should be able to stabilize its pay-TV subscription base if it can pull it off with its initiatives. The primary risk still hovers around how long the telcos can continue their pay-TV expansion spree.
Our price estimate stands at $27 implying a premium of 15% to the market price.
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