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Comcast, Apple in Talks to Enhance Services

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Comcast Corporation (CMCSA - Free Report) – the largest cable MSO in the U.S. – is holding discussions with Apple Inc. (AAPL - Free Report) to enhance the video streaming services offered by the Apple TV device.

The Apple TV device boosts the TV Everywhere service by allowing users to stream content from various online content distributors like Netflix Inc. (NFLX - Free Report) , Hulu Plus and YouTube.

However, lack of network speed at peak hours may hinder proper video streaming. Hence, adopting Comcast’s broadband cable service will enable Apple to deliver an enhanced video streaming experience to its users.

A few days back, Comcast struck a deal with video streaming company, Netflix. Per the deal, Comcast will deliver the latter’s content directly to the Netflix customers without affecting the video quality.

In the recently concluded fourth quarter of 2013, Comcast added 43,000 video subscribers compared with a net loss of 7,000 video customers in the prior-year quarter. After a gap of 26 quarters, the company reported such impressive results.

Comcast is offering several innovative products, such as the nationwide rollout of X1 services, various home security services and has introduced new content for multi-platform on-demand services. Moreover, the launch of Xfinity Streampix, a subscription based on-demand video streaming service, will further drive ARPU of the company.

Launch of such innovative value-added services coupled with the ongoing acquisition of Time Warner Cable Inc. are expected to not only boost Comcast’s video business but also safeguard its position against major cable and satellite TV operators.

Currently, Comcast Corporation carries a Zacks Rank #3 (Hold).

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