Comcast (CMCSA) is facing increasing competition from over-the-top services. Alphabet’s (GOOG) YouTube is also set to launch its online television service, YouTube TV, in the next few months. Hulu plans to launch its online television service later this year. We discussed whether Google’s YouTube TV will be a game changer for the media industry in an earlier series.
Comcast was asked about its views regarding online television services at the Morgan Stanley Technology, Media & Telecom Conference late last month. Earlier, Comcast said that it had found it difficult to believe that skinny bundles like Dish Network’s (DISH) Sling TV could benefit the content provider and could provide viewers content at a fraction of the cost of traditional pay-TV.
Receive e-mail alerts for new research on CMCSA:
Interested in CMCSA?
Don’t miss the next report.
However, the company said that on the NBCUniversal side, it’s providing content to each one of these online television services while its high-speed Internet business is providing the necessary infrastructure for consumers to view this content. Considering this scenario, Comcast intended to benefit the consumer with its services.
The company said that when it comes to the NBCUniversal business, it will continue to provide content to these SVOD (subscription video on demand) services while its high-speed Internet business will provide the necessary broadband to view this content. In contrast, it will continue to try to provide compelling content on its X1 set-top box to gain more video consumers.
According to reports, Hulu’s online television service is expected to be priced at $35 per month. As the above graph shows, Hulu’s online television service is priced at the higher end at $35 per month compared to Comcast’s Stream, an IP-based (Internet protocol) streaming service, for $15 per month. In contrast, DISH Network’s (DISH) Sling TV and Sony’s (SNE) PlayStation Vue are priced at $20 and $30 per month, respectively.
Comcast makes up 0.82% of the SPDR S&P 500 ETF (SPY). SPY invests 3.4% of its holdings in the computer sector.