Comcast to Re-launch TV Everywhere

Comcast Corp. (CMCSA - Analyst Report), the largest cable MSO in the U.S. has decided to launch its TV Everywhere service called “XFinity Online TV” in October 2010. Comcast introduced the beta version of this service long back in December 2009. The company will now offer this on demand online service to its pay-TV subscribers for both video programming and Internet access. TV Everywhere is basically a broadband video service that will enable pay-TV subscribers to watch premium cable program and movies over its broadband network.
 
Comcast, the largest cable MSO in the U.S., has also become the first cable TV operator to offer cable content online at no additional charge. The beta version of XFinity TV was mainly computer/notebook centric. However, Comcast is developing applications so that XFinity service can also be utilize through Apple Inc’s (AAPL - Analyst Report) iPad. In fact, iPad will act as a remote control to navigate over 70,000 video-on-demand and live TV channels.
 
Additionally Comcast also announced that the company now introduced more user friendly sign-on and authentication process than the beta version of XFinity. Subscribers will be able to access any entertainment content developers’ library from his/her computer, notebook and mobile handset through an easy and quick authentication system that will link their pay-TV subscriptions to watch cable programming using a broadband connection.
 
We believe, through TV Everywhere service, Comcast is desperately trying to arrest the flight of basic video subscribers to alternative pay-TV service providers or the Internet. Cable TV industry is facing massive competitive threat from telecom giants and satellite TV operators. Furthermore, in recent days, Netflix Inc. (NFLX - Analyst Report), Apple TV, and Google TV of Google Inc. (GOOG - Analyst Report) are offering online services that will enable viewers to stream movies and TV shows over the Internet and watched on television sets. During the first half of 2010, Comcast lost nearly 160,000 basic video customers.
 
We maintain our long-term neutral recommendation for Comcast. Curently it is a Zacks #3 Rank (Hold) stock.

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