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Do Not Call Comcast’s New Streaming Service a Netflix Killer

Xfinity Streampix video streaming service seems to take on Netflix, Hulu and Verizon, and could be just another factor in driving people away from cable service.


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Comcast just announced that it will offer a video streaming service, called Xfinity Streampix, to Xfinity subscribers. Depending on your cable/internet package, the price for the service could be $5 a month or free (depending on how stuffed your subscriber package is).

So far the early news looks like it’s just for TV programming, but movies may be included or added eventually. Several news reports have been positioning this announcement as a shot across the bow to Netflix. I’m not so sure about that. It seems at one level more like a shot across the bow at video-on-demand. On another level an attack on Hulu, and other another it strikes directly against Verizon’s planned service with Redbox, though the Verizon deal is more like Netflix than Streampix is.

Verizon already offers its customers a serviced called Flexview, which lets you rent a VOD movie and then play it back over a variety of devices. Will the Streampix be much more than that? We don’t really know yet, but I think there’s a good chance that this plan, and others like it from competitors, are both attempts to stem the flow of customers deserting pay TV for Internet TV (in part aided by the proliferation of smart TVs and similar products) and to turn their free VOD offerings into something they can make money from.

Consider this: if I forget to record 30 Rock with my DVR I can always go to the free VOD selection and watch the episode — with commercials I can’t fast-forward through. But what happens when Xfinity (or Verizon or fill in the blank) decides that since they now have a streaming service, they take 30 Rock away from VOD?

It’s typical of cable companies to charge you for things you used to get for free (well, not for free, but for your package price). How many times has your cable company changed its channel lineup so that a channel you used to receive now exists only on a more expensive package? As a FiOS customer, I’ve seen that happen several times, so the effect is that the company slowly chips away at my service all in the name of somehow offering me more options.

In fact, Comcast already has a streaming service called XfinityTV.com, which offers recent episodes of TV shows and some movies. You don’t even need to be a Comcast customer to watch some of the programs for free. I wouldn’t be surprised if that changes too.

Banks are also well-known for these kinds of tricks — charging for services that used to be offered without additional fees.

I also wouldn’t be surprised to find commercials on Streampix programs — commercials you can’t avoid. Cable companies hate DVRs, but they feel compelled to offer them.

I don’t see Streampix as competition to Netflix. I see it as another thing to drive people away from cable and to Netflix. Of course, that’s not what Comcast has in mind, but that may be the result.

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Article Topics

Blogs · Video · Digital Media · Streaming · Cable · All topics

About the Author

Grant Clauser is the technology and web editor for Electronic House. Grant has been covering home electronics for more than 10 years with editorial roles in several consumer and trade magazines. He's done ISF-level damage to hundreds of reviewed products and has had audio training from Home Acoustics Alliance and Sencore.

7 Comments (displayed in order by date/time)

Posted by Bay Area John  on  02/23  at  02:08 PM

So many articles and posts take the stance that Comcast, Netflix, DTV (and here Banks, etc) are all out to strangle money out of consumers out of greed and maybe even malice. They are trying to make a business that turns a profit - and that requires satisfying their customers. If their costs go up (content makers want a larger part of the take, again not out of malice, they want to stay in business), they need to figure out how to cope without just taking a loss. Same as each of us have to do in our business. Gas and insurance went way up, and we had to increase our fees and reduce some services. It’s life. It’s one thing to argue that the wrong decisions were made, another to presume that any change is “greed”. Good business includes figuring value proposition, costs, and uptake. If you find that a particular service you offer costs you more to do than you charge for it, and also that comparatively few of your customers need that service, you may decide to stop making those who don’t use it subsidize those who do, and raise the cost. Greed? Greed is when someone else wants to make a buck, Business is when YOU want to make a buck.

Posted by Grant  on  02/23  at  03:12 PM

I don’t think I called them greedy, and I don’t mind a company making money off the good service they provide, but I am pointing out that 1) it’s not the netflix killer that so many other people in the media characterized it as, and 2) it offers little or nothing that the company doesn’t already offer it’s customers for no extra charge, but now it’s changing the name and charging for it. If a company wants to charge people more, fine, but don’t degrade or complicate the service and then charge more. Remember how Netflix enraged so many people last year when it upped it’s rate and took away service? What was the result for Netflix?

Posted by Bay Area John  on  02/23  at  04:10 PM

You say it’s not what you are saying, then you go back and say it again. Yes, I remember what happened at Netflix. I think you do too, but are being a little dishonest in your simplification that paints them as either greedy or foolish. As you know and was widely reported, Netflix’s contracts with the content studios expired, and they demanded much higher fees if Netflix wanted to continue. MUCH higher. THe original fees were low as no one really knew if the service would take off. It did, with big success. But the original subscription rate was absolutely impossible with the new demanded content rates. Netflix is the middleman. They can’t run a business selling to you for less than what they pay for the product. It’s lazy for the average consumer to presume Netlix just got dumb. It’s dishonest for a media critic to do the same.

Posted by Bay Area John  on  02/23  at  11:12 PM

Let me try this a different way, as my reply apparently didn’t make it through the moderators. I’m not disputing your point 1, but point 2 relies on ignoring causality. You use the example saying Netflix was wrong to raise rates and cut services, and had a bad result for their error. You don’t mention that Netflix’s contracts for content expired and the studios demanded dramatically higher rates from Netflix. The initial rate was a bargain, but it was a result of a speculative low contract rate from the studios, because they didn’t know if it would catch on. Once it did, the studios wanted 2x, 3x, or more. Netflix could not make a business of selling you content for the same price when their costs have skyrocketed. But are we angry at the studios? No, we blame Netflix. I’m suggesting that is not fair, and the media knows better.

Posted by Gman  on  02/24  at  08:29 AM

Most definitely, these issues of “profit” are a complicated matter for customers when perceived value is really the issue.  People will pay any amount of money for what REALLY matters to them.  It’s the job of a company to figure out what that is and then determine a fair price.  “Fair” is determined by “value” to that particular customer.  In my case, value is determined by convenience and selection when it comes to TV and movies.  Now, I happen to have been using dishonline.com as one of my options for both of the aforementioned and it does not cost me extra, although non-DISH customers can still use the service.  Despite being a DISH employee, I get the same value as any other customer, and often I don’t even log into the site to watch.  Combine that with other options I have to watch media whenever and wherever I am and it spells value to me.  Everyone is different, but honestly Grant, since I wouldn’t want Comcast’s home phone service, I would resent paying five dollars a month.

Posted by Wana  on  03/03  at  12:39 AM

That’s some good, sound advice. I never tried it, but I hear enroyeve rave about the service. I’m a YouTube man, myself. Bad quality, as compared to a DVD, but it’ll suffice. I stopped watching TV when I was a teen (decades ago), and had a tube-type TV in the basement that I tried to dump for so long. Finally got rid of it without anyone in the house complaining, because TV is digital now (don’t mention the analog to digital converter!). I might look into the streaming to computer…

Posted by Praveen  on  03/03  at  08:13 AM

Still have an old 1951 HMV Valve Radio, Long,Medium and Short Wave signals and still pick up lots on in.Run it up once a month to persreve valves (spares short) and it sounds just great with its huge elliptical speaker. Where you post is concerned dont get me started.Component systems are more environmentally friendly but for instance an iMAC if u keep up the warranty will last a long time,takes up less space and I certainly would get fed up with an outdated design in the end (shallow or what).Agree re all in one printers, very wasteful.

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