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Is Comcast Preparing to Launch a Nationwide Streaming Service?

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Comcast’s Xfinity Instant TV

On March 28, FierceCable reported, citing unknown sources, that Comcast (CMCSA) could be ready to launch a nationwide streaming service, Xfinity Instant TV. According to the report, the service will have a base price of $15, with the price going up to $40 with the addition of different channels. It will be available to Comcast’s broadband subscribers.

The report also cited a Reuters report stating that Xfinity Instant TV is expected to launch nationwide in the third quarter of this year. Last year, Comcast stated at the Wells Fargo Technology, Media & Telecom conference that launching an over-the-top (or OTT) service isn’t easy. It stated that it had studied the business models of such streaming services, but it didn’t express faith in their business models.

However, Comcast seems to have changed its mind after the success of nationwide streaming services like Dish Network’s (DISH) Sling TV and AT&T’s (T) DirecTV Now.

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Comcast had stated at the Wells Fargo conference that it’s looking at offering multiple products in a bundle to its customers, as it believes these will result in higher returns. As part of this strategy, Comcast said it would be continuing with its rollout of the X1 set-top box. As for its high-speed Internet business, it continues to add 1 million high-speed Internet subscribers each year.

The company is also looking at the home security business as a larger part of its business strategy.

Xfinity Home

Comcast’s Xfinity Home is a security service aimed at residential customers. Comcast’s Xfinity Home is a part of Comcast’s Other revenue segment, and it was launched about four years ago. Last year, Comcast stated that its home security business had surpassed 500,000 subscribers and that it expected this business to grow further.

As the above chart indicates, Comcast’s Xfinity Home security service’s revenue is part of Comcast’s Other revenue segment, which made up 5% of Comcast’s total revenue of $12.8 billion in 4Q16.

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