Comcast Disputes Media Report It Favors Roku Over Proprietary Streaming App

Comcast Feb. 4 issued a statement disputing an online media report that it plans to scrap development of a proprietary streaming app in favor of using Roku technology.

A report in BestAppleTV.com claimed Comcast Cable would bypass Apple TV as well as the tvOS app platform in development in favor of a Roku-designed smart box – similar to one manufactured by Roku for Sky-owned Now TV in the United Kingdom.

Comcast Corp. acquired Sky last year for $39 billion.

Media Play News reported Jan. 25 that Now TV, which was one of Roku’s first OEM clients for streaming media devices, including USB stick technology, is the third-largest OTT video service in the U.K. behind market leader Netflix and Amazon Prime Video.

Steve Burke, CEO of NBC Universal, appeared to underscore the move when he said Comcast’s pending AVOD service would incorporate Now TV technology and represented a good alternative for consumers not tethered to pay-TV/SVOD, while posing less of a risk in start-up costs.

“We think this approach has a much better chance to get scale quickly,” Burke said on the fiscal call.

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In a statement, Comcast said the BestAppleTV.com story contained “numerous inaccuracies” and “wrongly conflates” individual business dealings and relationships from Sky, NBC Universal and Comcast Cable.

“To be clear, Comcast Cable is deeply invested in development and innovation of its flagship whole-home platform, Xfinity X1, that is changing the way millions of people watch TV and manage the connected home,” wrote the cabler with 21 million subscribers.

Comcast said Xfinity TV customers can currently access their subscription via the Xfinity Stream app on iOS and Android mobile devices, and on computers and laptops via the Xfinity Stream web portal.

The cabler reiterated that subs can also access their TV subscription via the Xfinity Stream app for Roku devices and Samsung smart TVs (and soon LG and Sony smart TVs as well) or use their Xfinity credentials to authenticate more than 130 networks across more than 20 devices, including Apple TV, Roku, Amazon Fire TV, Google Chromecast, Xbox One and TiVo, among others.

Comcast said it “actively” remains in talks with other device manufacturers to distribute the Xfinity Stream app, “under terms that are mutually agreeable,” through the Xfinity TV Partner Program.

“[The program] continues to enable us to efficiently and effectively expand the range of devices our customers can utilize to access their Xfinity TV subscription,” wrote Comcast.

 

Comcast’s Solution to Video Sub Losses: Raise Broadband Pricing

Comcast Cable lost 96,000 video subscribers in the first-quarter (ended March 31), and 200,000 subs in 2017 — many to competing over-the-top video services and/or online TV platforms.

So, what is Comcast Cable doing in response to cord-cutters? Raising broadband (high-speed Internet) fees, CEO Dave Watson told an investor group.

Speaking May 14 at the MoffettNathanson Media & Communications Summit in New York, Watson reiterated that the traditional cable bundle still represents the best value to consumers eyeing a-la-carte programming alternatives such as Showtime OTT, HBO Now, Netflix, Amazon Prime Video and Hulu, etc.

When pay-TV subscribers opt for OTT video alternatives, they lose the multiproduct discount, while Comcast is able to lower its programming costs, while hiking monthly broadband fees.

Indeed, Comcast added 379,000 high-speed Internet subscribers in Q1, which helped upped broadband revenue 8.5% to $14.8 billion — 64% of video revenue.

“We’ve seen some low-end customers that have dropped video, maintain broadband … it’s accretive when that happens,” Watson said.

The executive said Comcast’s cloud-based X1 set-top continues to meld the traditional set-top with OTT video. The platform, which accounts for almost 60% of Comcast’s residential video footprint, now offers direct-access to Netflix and YouTube.

“We still think video is a very important category,” Watson said. “We’re still going to compete.”

At the same time, Watson concedes that competing streaming media set-top dives such as Roku offer similar features of X1, including the Xfinity app.

“We have a lot of optionality around how we manage the video relationship,” he said.