Comcast Corporation (CMCSA), the largest cable MSO in the U.S., has collaborated with Warner Bros., a subsidiary of Time Warner Inc. (TWX) to offer movies and TV shows through Xfinity TV. This will allow Xfinity TV customers to watch the offered content at any time and on any device before DVD release. The subscribers will also have the liberty to stream the movies limitlessly through set-top boxes.
Comcast offered a wide collection of movies to its customers in November. The offered movies can also be downloaded to smartphones, tablets and PCs. The company also offers movie rights from Lions Gate Entertainment Corp, 20th Century Fox and Universal Pictures.
In the recently concluded fourth quarter of 2013, Comcast added 43,000 video subscribers compared with a net loss of 7,000 video customers in the prior-year quarter. After a gap of 26 quarters, the company reported such impressive results.
Comcast’s decision to team up with Warner Bros. will not only boost revenues but will also help the company safeguard its position against low-cost video streaming companies like Netflix, Inc. (NFLX) and Hulu. Moreover, it will also help Comcast counter competition from Verizon Wireless’s FiOS TV and AT&T, Inc. (T) U-verse service. Such innovative value-added services will not only drive subscriber growth but will also reduce subscriber churn in the upcoming quarters.
Comcast is gradually deploying its next-generation Xfinity TV, an on-demand Web-based service, for subscribers who have access to both video programming and the Internet. Xfinity TV currently covers 95% of the company’s footprint.
Comcast currently has a Zacks Rank #3 (Hold).
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