Broadband Market Trends & Competition
Q: How is the overall broadband market trending amidst intense competition?
A: The broadband market is still growing, albeit at a slower pace, with a healthy amount of net adds expected in 2024 and beyond. " While competition is intense—especially from fiber (in about 50% of our footprint) and three fixed wireless competitors—we believe usage is increasing, with double-digit growth in broadband consumption. " Over 70% of our subscribers are on speed tiers of 500 Mbps or higher, and nearly one-third are on gigabit speeds. " We are confident in our strategy of investing in a better, ubiquitous network and superior products to compete effectively. "

Wireless Strategy & Broadband Churn
Q: How does your wireless business impact broadband churn, and is wireless a stand-alone business or in service of broadband?
A: Wireless is an integral part of our overall strategy and is closely connected with broadband. " It helps reduce churn and aids in acquisition, base management, and retention, though we don't disclose specific churn benefits. " With 7 million lines and about 11% penetration, wireless is both a key growth opportunity and enhances broadband by adding value. " We have introduced new mobile plans targeting multiline customers and continue to innovate with offerings like WiFi boost for our mobile customers. "

Capital Allocation & Share Buybacks
Q: Has anything changed in your capital allocation or leverage approach given the apparent slowdown in share buybacks?
A: Our capital allocation strategy remains consistent, focusing on reinvesting in our business, maintaining a strong balance sheet, and returning capital to shareholders. " Since restarting the buyback in 2021, we've repurchased over 15% of our share count, including over 6% in the last year. " The apparent slowdown is due to acceleration of buybacks in the latter part of last year in anticipation of Hulu proceeds. " We continue to value our credit rating and manage our leverage accordingly. "

Impact of ACP on ARPU & EBITDA
Q: Can you maintain domestic cable EBITDA growth even with the Affordable Connectivity Program (ACP) subsidies going away?
A: Yes, we are confident in sustaining EBITDA growth despite the competitive market and the ACP transition. " We continue to see tailwinds for broadband revenue growth, with ARPU growing 4.2% this quarter, exceeding our historical 3%–4% range. " We have experience managing promotional roll-offs and ACP customers, and our segmentation strategy allows us to balance rate and volume effectively. "

Peacock Content Strategy & Investment
Q: What is your approach to original content spending on Peacock, especially regarding the balance between sports and entertainment?
A: We're pleased with Peacock's progress, ending at 33.5 million subscribers. " Our strategy combines both entertainment and sports, reflecting our strengths at NBCUniversal. " Sports events like the NFL Wildcard game have driven subscriber growth and retention. " We're investing in original content, with successes like our biggest original "Ted" and the reality series "Traders 2". " Looking ahead, we have a strong content lineup, including the Olympics, NFL, Big Ten, and a robust movie slate. "

Theme Parks Investment & Returns
Q: What are your expected investment levels in theme parks over the next five years, and how do returns compare to other businesses?
A: This year, CapEx in parks will remain at 2023 levels, and in 2025, with the opening of Epic Universe, CapEx will begin to step down. " After that, we'll return to a more normal investment level, adjusting for new projects like the parks in Frisco, Texas, and Las Vegas. " Returns on theme park investments are very strong, and we view parks as a stable, long-term pillar of our business. " The response to our parks has been phenomenal post-COVID, and we're exploring opportunities in areas like gaming and live entertainment. "

Fixed Wireless Impact on Business Services
Q: Are you seeing increased competition from fixed wireless in the business market, particularly at the low end?
A: Yes, the small and medium-sized business (SMB) market has become more competitive, with fixed wireless being part of that. " We're experiencing some impact but are focusing on offering superior products, reliability, and ubiquity—crucial for businesses that require 24/7 connectivity. " We have multiple segments within Business Services, including mid-market and enterprise, that offset this competition. "

Segmentation Strategy with NOW Brand
Q: How have you structured the NOW brand to target the low end of the market without cannibalizing existing customers?
A: The NOW brand is a dedicated flanker brand strategy offering stand-alone products for the income-constrained segment. " It includes prepaid broadband, prepaid mobile, and NOW TV, with simple, no-contract, and no credit check offerings at competitive, value-based price points—such as 100 Mbps for $30 and 200 Mbps for $45, inclusive of taxes and fees. " By keeping it feature-light and distinct from our premium offerings, we aim to compete effectively in this segment while minimizing cannibalization. "

Programming Expenses & Renewals
Q: How should we think about the impact on programming expenses as major contracts come up for renewal?
A: We evaluate each renewal on a case-by-case basis, focusing on overall cost relative to content, flexibility in a fast-changing environment, and consumer value. " There's a significant transition between linear and streaming, and we aim to find win-win opportunities by leveraging our platform's ability to handle linear channels, on-demand, DVR, and streaming. "