As the old saying goes, if you can’t beat them, team up with another overpowered cable giant for a better chance. This morning, Comcast and Charter announced a new joint venture which will see the two companies partner to develop “a next-generation streaming platform across a variety of branded 4K streaming devices and smart TVs.” This new platform and the devices that run it will go up against Amazon, Roku, Google, Apple and other established streaming hardware players.
The new venture is divided equally between the two companies and is focused exclusively on streaming; “It does not involve Comcast’s or Charter’s cable video or broadband businesses, which will remain separate.”
Comcast says its Flex streaming platform will serve as the foundation for what comes next. “The retail business is also contributing to X-Class TVs and will contribute to Xumo, a streaming service that it acquired in 2020.” Comcast introduced its XClass TVs last year as an alternative to the many popular budget TVs that come preloaded with Roku, Amazon, or Google software. For its part, Charter, best known to many for its Spectrum brand, is bringing in $900 million over the course of several years.
Unsurprisingly, Peacock will feature heavily in the upcoming software and product slate. But customers will also have access to the wide selection of apps currently available on the Flex, so all the big hits like Netflix, Prime Video, Disney Plus, Hulu, HBO Max, Spotify and more are covered.
This is how new partners see their initial strategy unfold:
XClass TVs will be available through national retail partners and possibly directly from Comcast and Charter to provide more choice for customers. Xumo will continue to operate as a free global streaming service available through the joint venture’s products and third-party devices. Charter will offer 4K TV streaming devices and voice remotes starting in 2023. Comcast will continue to offer the Flex streaming platform as a streaming device and service to its customers.
A unified effort from the first and second largest cable operators in the United States means that you are likely to see a huge retail and advertising presence for any product that emerges from this joint venture. And, with the potential for huge profits, there are plenty of reasons for them to be aggressive.
More than one in three smart TVs sold in the US and Canada last year it was a roku tv model. Amazon and Google are also seeing success with their TV hardware partnerships. If Comcast and Charter can eat that even a little bit, the new joint venture is off to a good start. But it’s no small challenge: Roku and Google TV are offering better image quality than ever before. They are a proven and known quantity that consumers are familiar with.
Comcast and Charter note that “the closing of the joint venture is subject to customary closing conditions.”
Disclosure: Comcast is an investor in Vox Media, the edgeparent company of .