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January 22, 2007

Comcast: Back from the Dead or Undead?

Vampire From NYT: Once Given Up for Dead, Comcast Defies Its Obits

The article goes into detail about Comcast’s problems and recent activities, but this paragraph is key:

On one side, satellite broadcasters like DirecTV and EchoStar Communications were stealing video customers by offering lower rates and other benefits. On the other, telephone companies, led by AT&T and Verizon Communications, were eager to use cash harvested from their shrinking land-line services to push into growth businesses like high-speed Internet access and video. Cable companies had to fend off these interlopers by investing heavily and continuously in expensive system upgrades to remain competitive. Critics worried that these costs would devour cash and profits, without any certainty of a return on the investments.

Yet another example of a common business blind spot - focusing so much on the competition, you forget about your customers. Regular readers know how I feel about Comcast, and I’m the very soul of meek discretion compared to many otherwise sane professionals who have tried to deal with the company. Comcast’s problem isn’t technology or even price - it’s that they give their customers no reason to stay, and, in fact, seem determined to drive them away.

My fearless prediction: Comcast will be staked and so much vampiric dust within three years.

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