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Comcast Stops Offering Watchable Digital Video Platform

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Leading cable MSO (multi service operator) and media giant Comcast Corp. (CMCSA - Free Report) has shut down its standalone over-the-top (OTT) service – Watchable. The company had launched the service in September 2015. Through this offering, Comcast tried to foray into the highly lucrative digital advertising market.

The ad-supported Watchable offered non-exclusive, unlicensed and original content of 30 digital content developers. Vox Media, Buzzfeed, AwesomenessTV, Refinery29, The Onion, Mic, Vice and its own subsidiary NBC Sports are a few of Comcast’s content partners. Notably, Comcast has invested around $750 million in Vox Media and Buzzfeed.

Customers were able to view Watchable on Comcast’s Xfinity X1 set-top boxes and online at Watchable.com, as well as on mobile devices such as smartphones and tablets through iOS and Android-compatible applications. The company has decided to integrate these contents with its Xfinity pay-TV platform based on X1 set-top boxes.

Watchable was aimed primarily to compete with Alphabet Inc.’s (GOOGL - Free Report) YouTube and Facebook Inc.’s online video platform. Notably, Watchable debuted around the same time Cox Communications Inc. and Verizon Communications Inc. (VZ - Free Report) were launching their OTT ventures. Cox's FlareMe TV service and Go90 too failed to generate any meaningful market traction.

Meanwhile, in June 2017, Comcast brought together its various advertising technologies under a new division - Advanced Advertising Group. This division will include all ad-related technologies that it has acquired in the last 12 years, along with its local cable ad sales business -- Comcast Spotlight.

Cable TV operators are gradually adopting the data-driven advertising technique, which is already popular in the web-based advertisement arena. To derive maximum synergy from the combined video content and video distribution platform, Comcast is extensively penetrating into the advertising technology market. Inclusion of dynamic ad-insertion, targeted audience advertising and data-driven TV advertisements is a step toward the same objective.

Price Performance of Comcast

 

 

In the last 90 days, shares of Comcast have lost 7.65% compared with the industry’s decline of a mere 0.87%. The stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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