Weekly Rewind
Comcast’s cord-cutting play: The nation’s largest cable provider is getting ready to launch a streaming TV bundle, at least for its home internet subscribers. Sources tell Reuters that the service will be called Xfinity Instant TV, and will cost between $15 and $40, with major broadcast networks and ESPN in the lineup.
Comcast has been testing a version of this service, called Stream TV, in a couple of markets since last year, and it’s actually not a terrible deal. It includes HBO and broadcast channels for $15 per month–the same price as a standalone HBO Now subscription–with live streams on Roku players, mobile devices, and computers, plus logins for TV network apps on other platforms. The basic Xfinity Instant TV package could be similar, and I suspect the $40 version will be more like the big streaming bundles from DirecTV Now and PlayStation Vue.
Reuters’ sources say Comcast will only offer the service inside its cable footprint, and only for Xfinity internet customers. But the company did reportedly just secure nationwide streaming rights from TV networks, so it could go broader if the in-market business goes south.
Netflix devours all: I’ve linked before to stories about how Netflix is causing fear in Hollywood. Unbound by legacy business models (and pressure from investors to maintain those models’ profit margins), Netflix can afford to bid up the price of high-quality TV, putting it out of reach for other TV networks and studios. But here’s a new wrinkle: Netflix has gotten so aggressive that TV stars are starting to expect twice the pay that they used to, and other studios are even having trouble hiring top production crews.
I’m conflicted about the ramifications. While Netflix has done immense good for cord-cutting, any company with this much power will eventually abuse it, and that’s something we’re already seeing as Netflix holds back the evolution of streaming device interfaces. In any case, it’s interesting to go back in time to when Netlfix was insisting House of Cards–its first big-budget original series–was not the start of a strategy shift. Hollywood probably wishes it had realized the truth sooner.
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