April 27, 2022
Charter Communications and Comcast April 27 announced that the two companies have formed a 50/50 joint venture to develop and offer a next-generation streaming platform on a variety of branded 4K streaming devices and smart TVs. The joint venture will offer app developers, streamers, retailers, operators, and hardware manufacturers the opportunity to reach customers in major markets across the country with the platform.
Comcast will license Flex, its aggregated streaming platform and hardware to the joint venture, contribute the retail business for XClass TVs and also will contribute Xumo, the ad-supported streaming service it acquired in 2020. Charter will make an initial contribution of $900 million, funded over multiple years.
The XClass TVs will be available through national retail partners and potentially direct from Comcast and Charter to provide more customer choice. Xumo will continue to operate as a free global streaming service available through the joint venture’s products and third-party devices. Charter will offer the 4K streaming TV devices and voice remotes beginning in 2023. Comcast will continue to offer the Flex streaming platform as a streaming device and service to its customers.
“These products are all designed to make search and discovery across live, on-demand and streaming video seamless and incredibly simple for consumers,” Dave Watson, CEO of Comcast Cable, said in a statement. “This partnership uniquely brings together more than a decade of technical innovation, national scale and new opportunities to monetize our combined investment.”
“As the video landscape continues to evolve, this venture will increase retail consumer options, compete at scale with established national platforms, and join our existing lineup of options for the Spectrum TV App available on most customer-owned streaming devices,” added Tom Rutledge, Charter CEO.
The joint venture’s products claim to give consumers a state-of-the-art streaming experience to access their favorite apps, based on Comcast’s Flex product, which currently delivers all the most-watched streaming apps in the marketplace. The products will feature hundreds of free content choices through Xumo, currently delivering more than 200 unique streaming channels. Peacock also will be featured on the joint venture’s streaming platform, alongside other popular apps.
The closing of the joint venture is subject to customary closing conditions. This joint venture does not involve the broadband or cable video businesses of either Comcast or Charter, which will remain independent.