Comcast Launches Skype on Xfinity TV

Comcast Corp., the largest U.S. cable company, announced May 16 that it is introducing Skype™ on Xfinity®. The service lets subscribers make and receive video calls from their TV in HD picture quality, as well as send and receive instant messages via Skype while watching TV at the same time. The new service is Comcast’s attempt to differentiate itself from competitive offerings, while also adding an incremental revenue stream.

The service is now available in Boston and Seattle and before the end of the week, it will launch in eight additional markets. Additional markets will launch through the summer.  According to Comcast’s blog, Skype on Xfinity is a fully integrated TV experience that enables the user to continue watching TV while video calling, with picture-in-picture functionality, or instant messaging all at the same time. Read more

Deutsche Telekom Gives a Thumbs Down on the Verizon-Cable Deal

A May 7 article in The Hill discussed a telephone conversation between FCC Chairman Julius Genachowski and Rene Obermann, the German CEO of Deutsche Telekom, the parent company to T-Mobile USA. In the course of the conversation, which took place the week of May 1, Obermann pulled no punches, telling Genachowski that the Verizon-cable spectrum deal should be blocked.

The deal between Verizon and SpectrumCo LLC  – a joint venture of Comcast Corp., Time Warner Cable and Bright House Networks – and a similar arrangement between Verizon and Cox Communications, would allow Verizon to purchase large blocks of wireless spectrum from the cable companies. The arrangements also call for marketing and cross selling each other’s products and services. Read more

Cox Files Countersuit Against Sprint

Bloomberg reports in an April 17 article that Cox Communications Inc. has filed suit in federal court in Delaware against its former business partner Sprint Nextel over patent infringement. The complaint is a counter suit that claims Sprint has violated two patents held by Cox. It goes on to ask that the court dismiss a suit filed by Sprint in December claiming that Cox, Time Warner Cable and Comcast had infringed upon 12 Sprint patents.

The business relationship between Sprint and Cox involved the use of Sprint’s wireless services for Cox cable customers.  The relationship reportedly went south shortly after Cox stopped using Sprint’s wireless services and agreed to sell advanced wireless services (AWS) spectrum to Verizon Wireless, joining Time Warner Cable, Comcast and Bright House Networks in a similar but separate transaction. Read more

Verizon Wireless and Cable Companies Begin Joint Marketing

According to April 12 articles in the Kansas City Star and Dayton Business Journal, Comcast, Time Warner Cable and Verizon Wireless have initiated joint promotions in several shared markets. Offering a $200 debit card as part of the promotion, the marketing effort has begun in Kansas City, Mo. and Kansas City, Kansas; Columbus, Ohio;  Toledo, Ohio; Cincinnati, Ohio; and Raleigh, N.C.

The joint promotion is similar to the Comcast-Verizon effort launched earlier this year in Seattle and San Francisco. The two companies are offering debit cards to new subscribers who order cable and wireless phone products and services. The promotions are the result of joint marketing agreements that the country’s largest cable MSO signed with Verizon last year as part of the sale of Comcast wireless spectrum.

The FCC and U.S. Department of Justice are reviewing the sales agreements between Verizon Wireless and Comcast, as well as similar agreements between Verizon Wireless and Time Warner Cable, Bright House Networks and Cox Communications. In each of the deals, the cable companies had agreed to sell advanced wireless spectrum (AWS) to Verizon Wireless and entered into joint marketing agreements to sell each other’s services. The deals also have drawn criticism and scrutiny from consumer groups and other communications organizations.

Comcast Says No to Netflix

On March 6, Reuters reported that Netflix had begun exploratory conversations with the largest cable multi-system operators (MSOs) concerning joining forces. By Thursday, March 8, at least one cable operator, Comcast, had said no to the idea of providing a portal to Netflix as an additional on-demand source for its subscribers.

Comcast, who recently acquired NBC-Universal and is the largest cable MSO in the United States, provides a brand new streaming service in its Xfinity package called Streampix. Comcast characterizes the service, which appears to be a competitor to Netflix, as a premium add-on, similar to other subscription on-demand options. Read more

Comcast to Launch ‘X1′ Next Generation TV Service

In a bold move, Comcast announced earlier this week plans to launch a cloud-based video service called X1 in several markets around the country. The digital service requires a new user interface and allows access to social media such as Facebook, along with several other apps.  Read more

Cox Rolls Out a Low-Cost Package

As American consumers find themselves with less discretionary income and more video choices, large cable operators are seeking new ways to attract and retain subscribers. Last year, Time Warner Cable rolled out a $29.99 TV Essentials plan and Comcast soon followed with a $24.95 offering. It is worth noting that neither line-up includes ESPN, often the most expensive of the program networks.

This past week, Cox Cable followed suit and un-wrapped a new collection called TV Economy priced at $34.99. It also does not include ESPN. When comparing the low-cost packages with the typical expanded basic packages that might run in the $60 to $80 per month range, the multi-system operators may have created a small “bridge” to get them past the continued drain due to high consumer retail rates.

Looking ahead, one must wonder if consumers will be willing to forgo access to certain expensive programming  in exchange for lower video bills. Time and continued package modification will tell.

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