Comcast and Charter Communications, the largest cable operators in the United States, join forces in the streaming wars.
The two companies on Wednesday announced a 50-50 joint venture to develop and deliver a next-generation streaming platform on a variety of branded 4K streaming devices and smart TVs to reach customers in key markets across the country using the platform.
Comcast will license Flex, its bundled streaming platform and hardware to JV, contribute to the retailing of XClass TVs, and contribute to Xumo, the free, ad-supported streaming service it acquired in 2020. Charter will make an initial contribution of $900 million, funded over several years.
The XClass TVs will be available through local retail partners and likely direct from Comcast and Charter to provide more choice for customers. Xumo will continue to operate as a free global streaming service available through joint venture products and third-party devices. Charter will offer 4K streaming TVs and audio remote controls starting in 2023. Comcast will continue to offer the Flex Streaming platform as a streaming device and service to its customers.
“We are thrilled to partner with Charter to bring this platform and its award-winning experience to millions of new customers. All of these products are designed to make search and discovery via live and on-demand video and broadcast incredibly seamless and simple for consumers,” said Dave Watson, CEO of Comcast Cable, at statment. “This partnership uniquely brings together more than a decade of technical innovation, national scale, and new opportunities to monetize our joint investments.”
Tom Routledge, CEO of Charter, added, “Our new venture will provide a full-featured operating platform, new hardware, and smart TVs with a powerful app store that delivers a more streamlined and aggregated customer experience. As the video landscape continues to evolve, this venture will increase retail consumer choice, competing It is widely used with existing national platforms, and joins our current suite of options for a Spectrum TV app available on most customer-owned streaming devices.”
The joint venture products will offer hundreds of free content options through Xumo, which currently offers more than 200 unique broadcast channels. Peacock will also be featured on JV’s live streaming platform, along with other popular apps.
The closing of the joint venture is subject to the usual closing conditions. The two companies said this joint venture does not include the broadband or optical cable companies of Comcast or Charter, which will remain independent.
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