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Article

Title: Cable Horror? Comcast Hopes So

Author: Grant, Peter Article Type: Company
Source: Wall Street Journal, v248 n98 pC1(2) Publication Date: Oct 25, 2006
  ISSN: 0193-2241
  Illustrations: Graphs
URL of Publication: http://www.wsj.com

Comcast Corp. expects to report earnings for the third quarter of 2006 that will show strong sales of digital cable, high-speed Internet, and a new phone service. Comcast has been bundling these services and selling the so-called 'triple play' features to new subscribers at a discounted price for the first year. The company is ready to introduce Fearnet, a collection of horror movies and other similar programming that it plans to make available via Internet portal, its video-on-demand service, and to the users of cell phones. Fearnet is not expected to bring significant revenue in the short term, but it represents part of the latest strategy of Comcast, which seeks to future-proof itself against the major changes occurring in the telecommunications industry. Offerings like Fearnet are also designed to reassure investors that Comcast is not going to use its expensive shares to make another takeover bid similar to its failed attempt to obtain Walt Disney Company in 2004. While there have been rumors among industry observers that Comcast wants to take over Sprint Next Corp. and Yahoo! Inc., any such move would depress its share price, since it would indicate that management was not confident about the long-term future of cable. The company hopes that indicating its disinterest in any acquisitions will have the opposite effect. Comcast's introduction of Fearnet comes at a time when some investors wonder how much more the firm's shares can rise in price. They are already up 50 percent for the year.

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