Comcast Corporation (NASDAQ:CMCSA) Is All Set To Woo Customers
An insider who is familiar with Comcast Corporation (NASDAQ:CMCSA)’s promotional plans reported that the company is all set to launch a new HBO and broadband bundle that is aimed directly at Netflix. This new promotion, called “Internet Plus” will include StreamPix- the streaming video service, the basic 20 channels and the VOD, plus 25 Mbps of broadband and HBO GO/HBO. This 12-month promotion is slated to retail at $40-$50 dependent on the market. At the moment there isn’t too much competition in all markets, as far as bundling like this is concerned.
A good deal?
This new option is all set to launch this month but it is not yet clear whether it will be available in every Comcast Corporation (NASDAQ:CMCSA) market. At the end of 12 months, the initial promotion terms will change and price will be hiked to $60-$70 for a 6 month subscription after which, it will be taken up to $70-$80. Post that period, the users will have to negotiate a deal that is better than that.
The HBO GO and HBO inclusion is the most interesting part of this offer. The company has been very obstinate as far as launching a standalone HBO streaming-option is concerned. However, HBO and various cable executives have been discussing the possibility of bundling HBO with a few smaller broadband-packages. The first obvious product that emerged from those talks is Internet Plus.
Comcast Corporation (NASDAQ:CMCSA) has launched their video streaming service, Streampix, in 2012. Despite the fact that it is cheaper than Netflix, it is not very content-heavy like many other ISP streaming video services are. The cable industry wants to deter customers from opting out of the larger channel bundles. With Comcast Corporation (NASDAQ:CMCSA)’s new launch, the cable operators may have a tough time initially. However, Comcast Corporation (NASDAQ:CMCSA) will have to consider what will happen once prices of these new bundles soar past the initial promotional levels.