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What’s the Value Proposition of Comcast’s X1 Set-Top Box?

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Jan. 13 2017, Updated 7:37 a.m. ET

X1 set-top box

X1 is Comcast’s (CMCSA) VoD (video on demand) platform. Comcast’s X1 set-top box has proved to be a game-changer for the company.

The X1 set-top box has been a key product driving Comcast’s video business. It offers a search function and personalized recommendations through Comcast’s cloud-computing infrastructure. Comcast has also rolled out voice remotes bundled with its X1 set-top box that have proven to be extremely popular.

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The company stated at the Wells Fargo Technology, Media & Telecom conference late in 2016 that with its voice remote, it wanted to increase video consumption among its users. Comcast indicated the popularity of its voice remotes by stating that it had installed 10 million voice remotes so far and was “adding 1 million voice remotes every month.”

Comcast stated that at the Rio Olympics, 25% of its viewers entered the Rio hub through the voice remote on its X1 set-top box. The company also said that it intended to continue to innovate its X1 set-top box to drive video consumption.

Innovation of the X1

Comcast is offering different products in its triple-play services (voice, video, and high-speed Internet) based on market segmentation. For example, Comcast’s Internet Plus plan is for Millennials who aren’t very interested in streaming videos but would like high-speed Internet.

The company has also licensed its X1 set-top box to Cox Communications, Shaw Communications (SJR), and Rogers Communications (RCI). Comcast has also integrated Netflix onto X1 and hasn’t ruled out the integration of other products or services onto the platform.

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