Two months after Comcast Corporation (CMCSA - Free Report) announced that it would make the Netflix Inc. (NFLX - Free Report) app available on its X1 platform, the cable giant has decided to roll out a beta version of the service within the next few days. Instead of merely introducing the app, Comcast plans to integrate Netflix into the X1 system, featuring voice controls and search results among other things.
Ushering in a New Trend
Cable TV providers like Comcast have been facing considerable pressure due to growing demand for over-the-top (OTT) video streaming services, which has led to increased cord-cutting in recent years. People have been dumping expensive cable TV plans and shifting toward unbundled packages. To tackle this competitive threat, cable MSO’s have recently begun launching their own internet TV services through their internet connection. Even so, their offerings could not match the ease and feasibility of the OTT service. This spurred smaller cable operators to partner with video streaming providers for offering the latter’s service through a regular set top box. Going forward, we expect to see more of such partnerships between cable TV operators and OTT service providers. Note that Netflix has recently signed another collaborated with cable giant Liberty Global plc (LBTYA - Free Report) to offer its content on Liberty Global’s network.
The Bottom Line
Combining Netflix’s attractive content portfolio with its own cable TV system will help Comcast expand its subscriber base. Meanwhile, the partnership will prove equally beneficial for Netflix. The OTT market is on the way to becoming an intensely competitive space given the increasing number of telecom operators rolling out video streaming services. One instance of this is Verizon Communication Inc.’s (VZ - Free Report) launch of ‘Go90’. Thus, we believe that the latest partnership is a win-win for both Comcast and Netflix.
Comcast currently carries 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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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Two months after Comcast Corporation (CMCSA - Free Report) announced that it would make the Netflix Inc. (NFLX - Free Report) app available on its X1 platform, the cable giant has decided to roll out a beta version of the service within the next few days. Instead of merely introducing the app, Comcast plans to integrate Netflix into the X1 system, featuring voice controls and search results among other things.
Ushering in a New Trend
Cable TV providers like Comcast have been facing considerable pressure due to growing demand for over-the-top (OTT) video streaming services, which has led to increased cord-cutting in recent years. People have been dumping expensive cable TV plans and shifting toward unbundled packages. To tackle this competitive threat, cable MSO’s have recently begun launching their own internet TV services through their internet connection. Even so, their offerings could not match the ease and feasibility of the OTT service. This spurred smaller cable operators to partner with video streaming providers for offering the latter’s service through a regular set top box. Going forward, we expect to see more of such partnerships between cable TV operators and OTT service providers. Note that Netflix has recently signed another collaborated with cable giant Liberty Global plc (LBTYA - Free Report) to offer its content on Liberty Global’s network.
The Bottom Line
Combining Netflix’s attractive content portfolio with its own cable TV system will help Comcast expand its subscriber base. Meanwhile, the partnership will prove equally beneficial for Netflix. The OTT market is on the way to becoming an intensely competitive space given the increasing number of telecom operators rolling out video streaming services. One instance of this is Verizon Communication Inc.’s (VZ - Free Report) launch of ‘Go90’. Thus, we believe that the latest partnership is a win-win for both Comcast and Netflix.
Comcast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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