Comcast betting on internet customers, launching streaming video service

Comcast Corp targeting TV viewers who like to watch content online rather to choose more expensive cable TV packages for the same has been launching a new online streaming video service Xfinity Flex, said the  U.S. cable operator on Thursday.

For the consumers’ cord cutting trend, which is slightly leaning towards the reduction side, Comcast is joining other major players of the cable industry by putting more of its focus into the internet business.

Comcast will be launching new Xfinity Flex from Tuesday and will only be available to its internet customers for $5 a month.

Comcast’s customers will have not only an access to streaming services like Hulu, Amazon Prime and Netflix through the new service, but it will also provide them with free movies and shows, supported by the revenue generated from the advertisements to be run during streaming of that free content.

To allow the customers to use quicker search of the desired content, a voice-activated remote feature and music services like Pandora are also included in the new service, said Matt Strauss, executive vice president of Xfinity Services, during a press conference call.

The announcement came in the midst of rising competition from the industry’s major players who whether are intending or setting to launch new services, as AT&T and Disney are heading towards this year plans of introducing direct-to-consumer streaming services whereas Apple is expected to be launching its own TV and video service at March 25 event at its headquarter.

Though Apple did not disclose the event’s focus but merely described it in a single-line “its show time”, which point out towards already hinted video service with spending of $2 billion to produce original content for that service.

Comcast’s decision to bet on the internet business apparently came on the heels of addition of 351,000 internet customer added by the company during the fourth quarter last year which boosted the revenue by 10 percent, while about 29,000 video customers left the service during the same period.

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Maria Wiggins

Written by Maria Wiggins

Maria Wiggins:- News Stories
I am Maria Wiggins and I have over 11 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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