The end of 2019 saw the formal launch of the so-called ‘streaming war’ as new services were launched. This brought a new challenge to the hegemony enjoyed by Netflix Inc (NASDAQ:NFLX). New streaming products are set to launch in the coming months. One of the more interesting ones is Comcast Corporation’s (NASDAQ:CMCSA) Peacock.
Earlier on in January, Comcast revealed that it hopes to gain 30 million to 35 million subscribers within the next five years and generate around $2.5 billion in annual revenues. However, the Chairman of NBCUniversal, Stephen Burke, stated that the company could make more money than others through streaming. Hence, it is important to look into the rationale behind this statement.
Netflix managed to generate $20 billion in subscription revenues in 2019. Other companies like AT&T and Disney are expecting much bigger revenues from their streaming offerings. Analysts believe that Burke’s statement was based on a much broader estimate of the streaming market.
Comcast is determined to bring broadband plans that offer faster internet speeds, and broadband-only customers are now entitled to a XFinity Flex set-top box for free. It is a streaming device and is aimed at breaking the dominance enjoyed by Roku and Amazon’s Fire TV.
The company is looking to leverage its considerable broadband customer base in order to dominate the streaming space. In 2019, it added the highest number of subscribers in 12 years, and it will bundle its services for a higher fee. The user will get broadband, Peacock Premium, and also the Flex set-top box for free.
However, analysts believe that Burke’s comments are a bit too optimistic. Companies like Roku and Amazon are dominant players in the streaming device space, and they are going to continue to grow. On the other hand, Disney has already emerged as one of the stronger players due to the sheer range of its offerings.