Comcast cuts ties with Netflix
Media giant Comcast’s (CMCSA) NBCUniversal is cutting ties with Netflix (NFLX) in the US and will stop streaming its popular show The Office on the Netflix platform in 2021. NBCUniversal is set to make the show available on its own ad-based streaming service, which is slated to launch in 2020 and offer a library of film and TV franchises plus original content.
Comcast’s workplace comedy series The Office is reportedly the number one series on subscription video-on-demand services based on the number of minutes streamed. Last year, the show was streamed for more than 52 billion minutes, double the count of the next-viewed program, according to NBCUniversal. Further, Netflix has streamed the American remake of the British comedy show for nine seasons on the NBC broadcast network for eight years from 2005 to 2013.
Walt Disney (DIS) also decided to end its movies licensing programming contract with Netflix to build its own video streaming service, which is expected to launch on November 12 at a subscription price of ~$7 per month. The attractive monthly subscription price of Disney+ of as low as $7 led Comcast to lower the cost of its new streaming service from $12 to $10 per month. Comcast will also compete with AT&T’s WarnerMedia and Apple, which are soon launching their streaming product.
Notably, user penetration for the “video-on-demand” segment is increasingly growing from 7.5% in 2018 to 9.9% in 2022, given a shift in consumers’ preference from traditional cable subscriptions to over-the-top offerings.