Charter Communications and Comcast are joining forces to develop an entirely new streaming platform and hardware to deliver 4K streaming content.
The two companies made it clear in the announcement that this was a "50/50 joint venture" with equal stakes, as each involved significant resources. The companies' cable and broadband businesses will not be part of this joint venture and will remain separate.
equal partnership
Comcast will bring its Xfinity Flex platform and hardware, the retail side of XClass (made by Hisense), and Xumo TVs to the table. For those who don't know, Xumo is an Internet TV service that Comcast acquired in 2020. Basically, it's free online TV.
Charter is contributing €900 million that will flow over the next few years to fund the entire business. It will also start offering 4K streaming devices and voice remote controls next year.
The plan, as laid out, is for Xfinity Flex to serve as the starting point with Xumo as the free TV option. XClass TV will be supported by both companies to provide better customer service as they push these TVs and their platform to market.
The as-yet-unnamed platform will host big services like Netflix and Hulu, and Peacock appears to be a major focus.
The companies also clarified that Xfinity Flex and Xumo will remain separate, so if you're already a watcher of the two, you won't have to buy any additional hardware.
Strong competition
Looking at the deal, Comcast and Charter seem to be planning an aggressive strategy, and rightfully so as they face fierce competition.
Roku, for example, is a giant in the streaming industry that consistently receives rave reviews from users and critics. In fact, it recently announced an exclusive deal with Lionsgate to stream the new Nicholas Cage movie when it opens.
Other services also see the writing on the wall. Paramount is pouring more than €6 billion into streaming in hopes of getting a piece of that pie.
Good luck to the Comcast/Charter duo. A recent study by the Leitchtman Research Group found that Comcast lost 407 million cable subscribers in the third quarter of 000. Perhaps this plan can help keep both companies afloat.