Comcast Eyes Leasing X1 Software to TV Manufacturers

Comcast is reportedly considering licensing its X1 set-top box software to third-party consumer electronics manufacturers of smart televisions. Such a move would put Comcast in competition with Roku, Google and Amazon, among other tech companies affording TV manufacturers with Internet-connected consoles.

First reported by Protocol.com, citing sources familiar with the situation, Comcast engaged in initial discussions with TV manufacturers in January at the pre-COVID-19 CES confab in Las Vegas. The cable operator, which is slowly coming to grips with a changing pay-TV market — underscored by the departure of more than 815,000 subscribers through June 30 — currently licenses X1 technology for third-party set-tops to Cox Communications and soon Charter (Spectrum TV Plus).

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Roku cut its teeth licensing its operating system through set-top devices manufactured for the former 21st Century Fox’s NOW TV. Comcast now owns NOW TV through its acquisition of Sky from Fox. Samsung, one of the world’s largest TV manufacturers, has begun licensing its Tizen OS smart TV technology to third parties.

Comcast’s move into software licensing could be accelerating after attempts to sell NBCUniversal’s Peacock streaming service through the Roku platform fell through. Similarly to WarnerMedia’s HBO Max, Peacock is also not available on Amazon Fire TV.

Launched in 2012 as Comcast’s antidote to Netflix, Amazon Prime Video and Hulu, cloud-based X1 platform now represents about 60% of the cabler’s pay-TV subscriber base. Since then X1 offers subs access to Netflix and YouTube apps. Comcast also launched broadband-only Xfinity Flex online TV platform.