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Comcast to Offer Movies via Set-top Box

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Comcast Corporation (CMCSA) – the largest cable MSO in the U.S. – will be offering a wide collection of movies to its customers by the end of 2013. The movies will be available on set-top boxes and titles will cost between $15 and $20.

Unlike Video on Demand (VOD) service, which involves renting out movies, these movies will be sold in digital formats. This will give the subscribers complete liberty to stream the movies limitlessly via set-top boxes.  The available movies can also be downloaded to smartphones, tablets and PCs.

Comcast is already in talks with different Hollywood studios like Time Warner Inc. (TWX) and Twenty-First Century Fox, Inc. (FOX). Such value-added services from Comcast will not only add a new revenue stream to the company but will also help the company to safeguard its position against low-cost video streaming companies like Netflix, Inc. (NFLX) and Hulu.

Last month, Comcast collaborated with online social networking giant Twitter, Inc. to help the former’s subscribers to watch popular TV shows and purchase movie tickets from a tweet. Twitter users will find a ‘see it’ button through which they will be directed to their favorite TV shows. Moreover, they can also buy movie tickets through Fandango.

Comcast is gradually deploying its next-generation Xfinity TV, an on-demand, Web-based service, for subscribers who will have access to both video programming and the Internet. Such innovative value-added services will not only boost its subscriber growth but will also reduce subscriber churn in the upcoming quarters.

Currently, Comcast carries a Zacks Rank #2 (Buy).

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