Behind Comcast’s Steve Lee Hire



Comcast is hiring a consumer expert

The director of the New Jersey Department of Consumer Affairs, Steve Lee, is leaving his job to join Comcast (CMCSA), according to a statement by the state’s office of the attorney general.

“Steve Lee has served the Division of Consumer Affairs with an unwavering commitment to protecting New Jersey consumers from fraud and professional misconduct in the marketplace” New Jersey Attorney General Christopher Porrino said in the statement.

Lee joined the New Jersey consumer protection agency in 2014 and had previously served as Assistant US (SPY) Attorney for the Southern District of New York.

Article continues below advertisement

Improving customer service

At Comcast, Lee is taking up the role of deputy general counsel, and he’ll be joining Comcast at a time when the company has increased its focus on improving customer service.

With someone of Lee’s caliber on board, Comcast could deliver a better experience to its customers and reduce churn. Remember, high churn rates have the potential to drive up expenses as companies spend more on marketing to try to woo back lost customers.

Reducing costs

By reducing churn, Comcast can lower its costs and, in the process, give a boost to its bottom line (QQQ). Comcast’s operating costs in 2Q17 rose to $16.6 billion, up from $15.9 billion in 1Q17 and $15.2 billion in 2Q16, as shown in the chart above.

Improving the customer experience should also help Comcast’s competition against Netflix (NFLX), Sony (SNE), and Amazon.com (AMZN), whose online video services are diminishing pay-TV subscriptions.


More From Market Realist