Comcast Corporation (NASDAQ:CMCSA) is planning to enter the connected TV market. Connected TV is already dominated by players like Apple Inc. (NASDAQ:AAPL) TV, Amazon Fire TV, think Roku, and Chromecast. Comcast, which is a minor player in the connected devices space, targets to use its software, which is used in X1 Cable box, to power the smart TVs.
It is very late for the STB (Set-Top Box) manufacturer to foray into the connected devices market. The company could have entered the connected TVs market way back in 2010 when internet-based TVs started their appeal. At that time companies like Dish, TiVo and Comcast are making to maximizing revenues from the prevailing STBs rather investing in future technology.
Amazon forays into the connected TV market
At this stage, the ground is ripe for the manufacturers to introduce their OS (operating systems). It set a stage for Amazon and Roku to make an entry into the connected devices market. Amazon and Roku used their popularity to venture into the Connected TV market.
Connected devices and smart TVs
Comcast finally wakes up to generate some new revenues because its traditional customer base is shrinking. It plans to tap the Smart TVs segment and make handsome revenues if it clicks in the future. Operators like Apple, Samsung, and Roku achieved significant progress in this space.
Comcast previously enjoyed sole selling rights for MVPDs to services such as Starz, Showtime, and HBO. The company is losing its revenues because the services offer content direct to the customers.
Mushrooming of subscription services through connected devices removed the charm out of MVPDs. As a result, the presence of MVPDs began to wane putting a dent in the revenues of Comcast where once it enjoyed a monopoly. Another factor responsible for Comcast to consider entry into the connected TV market is the growing interest of consumers in FAST services like Pluto TV, Roku Channel, and Tubi; and AVOD. The ad-supported services provide a portion of the inventory or ad revenue to the platform.
Comcast eyes a share of the ad revenues by foraying into the connected TV space. With this move, Comcast will be free from the shackles of operating MVPD and earn revenues from the regions.