We knew it was only a matter of time before cable companies offered video streaming services. As cable prices skyrocket, Americans have been turning to online video streaming companies to meet their television needs. Online video streaming companies such as Netflix have been stealing thousands of customers from cable companies forcing the cable giants to reconsider their service packages.
To meet this new challenge, Comcast has launched its own online video streaming service called Xfinity Streampix. This new subscription video service will offer customers the opportunity to view television shows and movies on demand. Right now, Comcast is working with Warner Bros., Sony and Universal for content deals. Comcast customers can add Xfinity Streampix service for an additional $4.99 each month. Customers can stream Streampix videos to their TV lift cabinets, computers or mobile devices.
Unfortunately, this service is currently only being offered to existing Comcast customers. It is questionable whether the added-value service will be of much benefit to existing cable customers. If you already pay a premium for cable television service, why would you need Xfinity Streampix? Perhaps for the customers who are traveling and wish to stream content to their phones this will be of use, but for the typical Comcast customer will this service be necessary?
Comcast would be better positioned to compete with Netflix and Amazon by offering this service to new customers. After all, the reason most defected to Netflix and Amazon in the first place was because they could not afford cable packages.