In order to expand its subscriber base, Comcast Corp (CMCSA - Free Report) – the largest cable MSO in the U.S. – started a new online site for the U.S. Lesbian, Gay, Bisexual and Transgender (LGBT) community.
A growing presence of LGBT groups across the country has induced Comcast to offer dedicated service to that community by offering the Xfinity.com/LGBT website. The new portal will offer content that includes award winning movies, articles, TV series, music and documentaries for the LGBT community.
Moreover, Xfinity TV digital subscribers can enjoy all the HERE TV programs on Xfinity On Demand for free during the first week of June.
In addition, all HERE TV content on Xfinity On Demand and online will be available for free to Xfinity TV digital customers for the first week of June.
Evolution of low-cost video streaming companies like Hulu and Netflix, Inc. (NFLX - Free Report) has resulted in a huge drop in cable subscriber growth. Furthermore, large telecom players like AT&T, Inc. (T - Free Report) and Verizon Communication Inc. (VZ - Free Report) are offering triple-play services, which include voice, video and Internet through its U-Verse and FiOS TV brand, respectively. This is affecting Comcast’s cable subscriber growth.
Comcast reported mixed financial results for its first-quarter 2013 with the bottom line outpacing the Zacks Consensus Estimate but the top line missing the same. During the quarter, the company lost of 60,000 video customers compared with a net loss of 37,000 customers in the prior-year quarter.
So, in order to meet its customer expectations as well as drive its subscriber growth and revenues, Comcast has rolled out this progressive service. We believe that this will attract a particular group of customers toward Xfinity service, driving the topline.
Currently, Comcast carries a Zacks Rank #3 (Hold).