Comcast Corporation (CMCSA - Analyst Report) – the country’s largest Multi Service Operator (MSO) – announced that it has increased its Hispanic channel portfolio by adding 32 new networks to its total 20 MultiLatino lineups.
These new channels will be available in the most popular cities of Florida, namely Jacksonville, Naples, Orlando and West Palm Beach. Subscribers can also watch these channels on Comcast’s popular Xfinity On Demand and online, hence offering more flexibility of viewing.
The new package will be available along with the company’s double and triple play services, which includes both voice (both local and international) and internet connections. The MultiLatino package starts at $20 per month.
Strong growth of Hispanic community in the U.S. coupled with continuous loss of video subscribers has forced Comcast to expand its MultiLatino channel offerings at a very competitive rate.
AT&T, Inc.’s (T - Analyst Report) U-Verse offers Spanish channels at $34 while satellite TV operator Dish Network Corp. (DISH - Analyst Report) and DIRECTV (DTV - Analyst Report) provide Hispanic channels at $25 and $15, respectively.
In the last quarter of 2012, Comcast lost just 7,000 video customers compared with a net loss of 17,000 customers in the prior-year quarter. However, in the previous quarter, monthly ARPU from video customers increased 8.7% to $153.54, mainly attributable to company’s plan to upgrade customers to premium tier, which in turn will drive the Video On Demand (VOD) and HD-DVR service business of the company.
So, we believe that Comcast will continue to expand its service offerings in order to improve its video subscriber growth.
Currently, Comcast Corporation carries a Zacks Rank #2 (Buy).