Comcast and Charter to Launch A Joint Streaming Option
As the cable and streaming spaces pull further into step with each other, we’re seeing a variety of interesting industry developments. Charter and Comcast, with the support of the Comcast-owned streamer Xumo, have announced a new joint venture that showcases this intriguingly. Entertainment attorney with Blake & Wang P.A, Brandon Blake, shares the news.
Brandon Blake
Next-generation Streaming?
The 50:50 joint venture between the two cable giants has been boldly promised “to develop and offer a next-generation streaming platform on a variety of branded 4K streaming devices and smart TVs.”
Fighting words in a market already facing streamer saturation. It’s clear they’re thinking a little beyond just streaming, however. The venture is promised to offer streamers, retailers, hardware manufacturers, and app developers the opportunity to reach new markets, so they’re not merely focusing on content alone. The partnership is building on Comcast’s existing Flex product, which already allows consumers access to a wide range of streaming apps in one.
Going Nationwide
Cable TV has long been hampered by regional technology and infrastructure, so the aim of offering services nationwide is a notable new step for them. While Comcast brings the streamer, the hardware, and the platform to the table, Charter will be carrying the bulk of financial contributions, pegged at $900M currently, and to be deployed over several years.
Xumo currently operates as a free, ad-supported product, a market they intend to maintain. Peacock, of course, features in the promised app list. They were quick to emphasize that their cable and broadcast business will stay very separate from the new product. Taking a leaf from Roku’s current business model, they are clearly aiming to capitalize on offering a simple, no-frills, and accessible platform, rather than a single service, to stand out from the crowd.
At a time when streaming subscriber growth is slowing, it’s an interesting announcement, and we will be very interested to see what comes of the new venture.
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