Comcast Corporation (NASDAQ:CMCSA) is finding the way into living rooms with its streaming service called Stream. It is augmenting its footprint through including a streaming service just like Hulu, LLC and Netflix, Inc. (NASDAQ:NFLX).
Its main aim is not to compete with other service providers but to retain the broadband customers. At the same time, it is putting in efforts to increase profits on the Internet.
Comcast allows xfinity Internet customers the access to content from more than a dozen content providers like HBO using its broadband service. However, the customers will have to pay more for the service.
According to Recode, the total cost for broadband subscription and the Stream in Philadelphia is $82 for each month. However, you need to pay a monthly charge of just $45 for broadband and the TV. The customers will not be able to view on large screen TVs because the service is not offered on STB.
The founder and Chief Executive Officer, Ashley Schwartz, at Furious Corporation, said the Comcast is offering the Stream just to retain the broadband customers and not to compete with Hulu or Netflix. It is also not aimed to add more new customers.
The cable services providers are keeping a barrier to prevent entry for the new startups. It is just a hedge.
Comcast is generating profits mainly from the broadband when compared to the TV. It is offsetting the losses caused due to customers leaving the service by increasing the Internet tariff. Like other cable providers, Comcast is also banking on broadband to sustain the growth.
The company could easily increase its profit margins through negotiating the deals with the broadcasters by leveraging its large client base.
The customers, who subscribe to multiple services, are enjoying higher cost savings when compared to the customers that select the Internet only.
Comcast Corporation (NASDAQ:CMCSA) allows customers save the bills by paying the full amount for the cable service and enjoy discounts on Internet. The customers can use the live chat option of the company to negotiate for the best deals and enjoy enhanced savings on the Internet and cable services.