Charter, Comcast Partner for Next-Gen Streaming Platform

Charter Communications, Inc. and Comcast Corp. have formed a 50-50 joint venture to develop a new streaming platform, the companies announced.

The platform, according to a news release issued by the companies, will work on 4K streaming devices and smart TVs.

For users, the companies stated in the release, the benefits will include a “world-class” interface, numerous apps and another streaming service option. The release also states: “The joint venture will offer app developers, streamers, retailers, operators and hardware manufacturers the opportunity to reach customers in major markets across the country with the platform.”

Comcast has about 57 million customers in the United States and Europe, according to the company. Charter reports having about 32 million customers.

Comcast’s contribution to the joint venture, the companies states, will include: its Flex streaming platform; retailing of XCLass TVs; and distribution of the Xumo streaming service, which it acquired in 2020. Charter will contribute $900 million over five years under the agreement. XClass TVs will be sold through retailers and “potentially” by the two cable system operators, the release states.  Xumo, the release states, will remain free.

“These products are all designed to make search and discovery across live, on-demand and streaming video seamless and incredibly simple for consumers,” Comcast Cable Chief Executive David Watson said in a prepared statement.

Thomas Rutledge, Chairman and Chief Executive of Charter, said in a prepared statement: “As the video landscape continues to evolve, this venture will increase retail consumer options, compete at scale with established national platforms and join our existing lineup of options for the Spectrum TV App available on most customer-owned streaming devices.”

The deal comes amid a shifting landscape for operators of streaming services. The eight leading U.S.-based streaming services are projected to spend at least $115 billion on new content in the foreseeable future even as they lose money on streaming businesses themselves, the Financial Times reported.

Read more: With Subscriber Growth Slowing, Media Groups Spend $115B on Streaming Content