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Comcast’s X1 Platform: How Is It Attracting Customers?

Shirley Pelts

Comcast: What Will Drive Its Growth?

(Continued from Prior Part)

X1 platform

Comcast (CMCSA) continues to roll out its X1 platform to new and existing customers. X1 is Comcast’s VoD (video on demand) platform. It offers search and personalized recommendations through Comcast’s cloud computing infrastructure.

At the JPMorgan (JPM) Global Technology, Media and Telecom Conference, Comcast was asked about the penetration of its X1 set-top box. In fiscal 1Q16, Comcast’s X1 set-top box had a penetration of 35% and Comcast expects the penetration of its X1 set-top box to be around 50% by the end of 2016. Comcast expects its X1 penetration to be deeper in 2017, though not 100%.

As of the end of 1Q16, 35% of Comcast’s video customers were using the company’s X1 platform with the voice remote. 86% of Comcast’s subscribers were using XFINITY On Demand on a monthly basis, with 25 hours per month of viewing on average. On May 4, the company also introduced a Spanish Kids Zone on its XFINITY platform.

Around 42% of Comcast’s subscribers are using its mobile TV Everywhere apps on a monthly basis, up by 32% from last year. These customers are viewing an average of seven hours of content each month. As more and more Comcast customers use the company’s X1 platform, the company’s product churn is dropping.

Comcast continues to make its X1 platform more attractive

Comcast continues to push its X1 platform and add more features to make the platform more attractive for its customers. As a part of Comcast’s annual Watchathon Week, which promotes VoD viewing, the company made Sony’s (SNE) free, ad-supported streaming network, Crackle, available on its XFINITY On Demand service.

Comcast has made many changes to its X1 platform, including enhancing its sports app, launching a voice remote, and offering its Kids Zone. Last month, Comcast entered into a content licensing agreement with The Walt Disney Company (DIS) and will offer a selection of movie titles through the XFINITY On Demand digital store.

Disney makes up 0.86% of the SPDR S&P 500 (SPY). SPY invests 3.5% of its holdings in the computer sector and 0.24% of its holdings in Netflix (NFLX).

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